Railways Sector: 100 tracks to be privatised!
Posted on: 10/Feb/2020 1:38:33 PM
The central government Finance Minister Nirmala Seetharaman had announced in the budget presentation that the Railways Sector, presently functioning entirely under the Central Government, will now function jointly with the private sector.
Indian Railways is the largest Public Sector Undertaking in the country. The central government has been initiating action to introduce the private sector in Indian Railways.
There have been regular reports that certain trains and routes are to be privatised! In this scenario, the Central Minister for Finance, Nirmala Seetharaman, presented the budget on 1st February. During this, the minister detailed some aspects regarding the Railways Department.
The minister informed that in the 1st Phase, 150 private sector trains will be run on 100tracks. Funds of Rs. 12000 Crores have been allotted for this purpose. As such, the minister informed that the interested private sector organisations can apply for the same.
With this announcement, there was a mixed response from the public with some sections supporting and others protesting! However, this announcement has been hugely welcomed in the private sector industry including Tata, Adani, and Hyundai!
During the 1st Phase, these private sector trains will be operated in the segments Mumbai-Delhi, Chennai-Delhi, Delhi-Howrah, Shalimar-Pune, and Delhi-Patna routes.
These trains of the private sector will start on these routes 15 minutes after the current Indian Railways trains depart in the respective routes. These private sector trains will have 16 coaches. Long-distance trains will not have too many coaches. They will operate on specified tracks at 160 kmph. The fares will be decided by the concerned private sector.
The private sector will be responsible for funding, procurements, operation, and maintenance of these trains.
Rs. 22000 Crores have been allotted for the changes in these routes. Another Rs. 700 Crores have been allotted for doubling the tracks in these routes. Rs. 5768 Crores have been allotted for the manufacture of required spare parts. Rs. 1650 Crores have been allotted for Signaling and telecommunication equipment.
