Privatisation of Indian Railways.
                     Privatisation of 
Indian Railways
Introduction
• The government plans to operate 150 private-run 
commuter trains by 2022. 
• Depending on the private sector to boost India's trains has 
been an inevitability for those within the government ever 
since the drive for public-private partnership (PPP) started 
in the mid-2000s (primarily in the road and power sector).
Source: Otv
What to Expect?
• Private operators will be allowed to operate train 
services using the common railway infrastructure — 
from tracks and signalling systems to depots and 
cleaning lines.
Source: Outlook India
The Claim of Ministry
• The government is looking at a "paradigm shift in passenger 
train operations" to deliver "world-class service" to the 
commuters, according to a document jointly prepared by 
federal think tank NITI Aayog and the railway ministry. 
• The shift, it says, cuts travel time, adds new coaches and 
takes care of the crazy dash for tickets reserved.
Source: Swarajya
Benefit for Private owners
• Meanwhile, private firms will be free to decide tariffs and exits, as 
well as the package of services offered on these trains. 
• They will be allowed to run these trains in return for a share of 
the revenues they earn for a period of 35 years, apart from 
payments in the form of charges for using public infrastructure.
Source: CNBC 
Benefit to People of India
• Competition in running trains can break the existing rigidity in the 
railway system, according to Debroy, who also heads the 
economic advisory council to the prime minister. 
• He continued that all of the rivalry is good and it also does things 
people don't know about.
Source: Urban Transport 
Lack of Clarity
• The details of this radical new railway modernization plan are still 
fairly sketchy, however. 
• For example, it is uncertain whether the railways would foresee a 
transition from air and roads — transport modes that lose 
passengers and freight because of lower fares and greater 
convenience — by boosting passenger fares in return for 
improved connectivity on the new private trains.
Source: Inkhabar
Challenging Queries
• Another thorny question is how to operate private trains without 
an independent regulator. In the case of a conflict with private 
companies, it would not be possible for the railways to sit in 
judgement when still having a rival running trains along the same 
routes
Source: Trak.in
Queries to the Govt.
• There was no response to a list of questions submitted to the 
railway ministry and public relations officials requesting clarity on 
many of the sticky issues. 
• Replies are also clipped to questions raised by Members of 
Parliament.
Source: Pixabay
Positive Side
• In transport economics, the material vs carriage concept states 
that carriage should be owned by the state (tracks and rail 
network), whereas material (trains) should be a freely tradable 
asset. 
• India overcame the backlash when airports were privatised; when 
the telecommunications sector opened up
Source: The Wire
Conclusion
• While it is early days to take a guess on how the private train 
project will develop, Indian Railway Catering and Tourism Corp is 
launching luxury trains. 
• Early indication is given by Ltd (IRCTC). The Tejas trains have 
been widely hailed as the first "private" trains of independent 
India, though the project was handed over to state-run IRCTC 
without bidding.
Source: ET