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Bids opened for Private Passenger Train Operations on Indian Railways network

After detailed exercise and multiple rounds of discussion with the industry players, the bids for PPP in the Passenger Train Operations project were opened on 23 July 2021. This is an entirely new attempt to bring world class trains through Public Private Participation (PPP) in India.

  • The Ministry of Railways has received bids from both private and public sectors to operate 29 pairs of trains with around 40 modern rakes entailing an investment of around Rs 7200 crores. 
  • The Ministry of Railways will expeditiously complete the evaluation and decide the bids.

About the project:

  • It may be noted that the Ministry of Railways (MOR) had invited Request for Qualifications (RFQ) for private participation in operation of passenger train services over 12 Clusters comprising more than 150 Origin Destination pair of routes through introduction of 151 modern Trains.
  • The first pre-Application Conference was held on July 21, 2020.
  • The Second Pre-application Conference on Private Train Project RFQs was held on 12th August 2020.
  • In November last year, Indian Railways completed the RFQ evaluations for PPP in the Passenger Train Operations Project.
  • In all 120 Applications have been received for the 12 Clusters, from 15 applicant firms.
  • Out of 120 applications, 102 applications have been found eligible to participate in the RFP stage.
  • The 109 OD Pairs have been formed into 12 Clusters across the Indian Railway network.
  • Each Train shall have a minimum of 16 coaches.
  • This is the first major initiative of attracting private investment for running Passenger Trains over Indian Railway Network.

Project Features:

  • The project would entail private sector investment of about Rs 30,000 crores.
  • The private entity shall be responsible for financing, procuring, operation and maintenance of the trains.
  • The Concession Period for the project shall be 35 years.
  • Trains shall be designed for a maximum speed of 160 kmph.
  • Majority of Trains to be manufactured in India (Make in India).
  • The Private Entity shall pay to Indian Railways fixed haulage charges, energy charges as per actual consumption and a share in Gross Revenue determined through a transparent bidding process.
  • These trains shall be operated by the Driver and Guard of Indian Railways.
  • The operation of the trains by the private entity shall conform to the key performance indicators like punctuality, reliability, upkeep of trains etc.
  • Operation and maintenance of the passenger trains would be governed by standards & specifications and requirements specified by Indian Railways.


Source: PIB-Press Release | Image Credit (representational): MoR