Private Trains: Dilemmas of a prospective PTO
Early last year, Indian Railways (IR) announced an ambitious plan to privatize 109 O-D (Origin-Destination) pairs of trains, forming roughly 5% of existing Mail/Express trains, over 12 clusters. The avowed objectives declared by the Ministry of Railways (MoR), inter alia, are: Ø Induction of modern technology – Quantum Jump Ø Reduced maintenance intervention - 40,000 km/30 days Ø Reduced transit time Ø Enhanced safety Ø World class travel experience to passengers Ø Reduce demand supply deficit in the passenger transport sector Ø And, bringing in private investment to the tune of Rs 30,000 crore in rail sector The bidding process was started in July 2020. The model proposed a c oncession period of 35 years with the concessionaire (termed PTO or Passenger Train Operator). A PTO would be required to induct their own train, pay fixed haulage charges for path, stations, access to railway infrastructure and charges for electricity...