Indian Railway Private Train

Indian Railway Private Train

151 Private Train Services over the 109 Pairs of Routes

151 Private Train Services over the 109 Pairs of Routes-Railways Request for Qualifications (RFQ)

Ministry of Railways

Ministry of Railways invites Request for Qualifications (RFQ) for private participation for operation of passenger train services over 109 Origin Destination (OD) pairs of routes

The project would entail private sector investment of about Rs 30,000 crore. This is the first initiative of private investment for running Passenger Trains over Indian Railways network

Also Read: IRCTC Private Train List and Route

The objective of this initiative is to introduce modern technology rolling stock with reduced maintenance, reduced transit time, boost job creation, provide enhanced safety, provide world class travel experience to passengers

Also Read: Comments on Draft Documents for discussion on Private Participation in Passenger Trains

Ministry of Railways has invited Request for Qualifications (RFQ) for private participation for operation of passenger train services over 109 Origin Destination (OD) pairs of routes through introduction of 151 modern Trains (Rakes).

The 109 OD Pairs have been formed into 12 Clusters across the Indian Railway network. Each Train shall have a minimum of 16 coaches.

The project would entail private sector investment of about Rs 30,000 crore. This is the first initiative of private investment for running Passenger Trains over Indian Railways network.

Majority of Trains to be manufactured in India (Make in India). The private entity shall be responsible for financing, procuring, operation and maintenance of the trains.

Trains shall be designed for a maximum speed of 160 kmph. There would be a substantial reduction in journey time.The running time taken by a train shall be comparable to or faster than the fastest train of Indian Railways operating in the respective route.

The Concession Period for the project shall be 35 years.

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.

www.eprocure.gov.in

For further details & cluster wise information one can visit active tender’s column of the above website.

Here’s an overview of private train operations by Indian Railways, exploring both ongoing developments and policy frameworks:

1. What Defines a “Private Train”?

Unlike IRCTC’s Tejas Express, which is a public undertaking (IRCTC is majority government-owned), private passenger train operations are distinct because they involve independent entities owning, operating, and managing the services.
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Under the policy, private operators are responsible for financing, procuring, running, and maintaining their trainsets—offering flexibility over fares, onboard amenities, and revenue models.
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2. Key Policy Highlights for Private Train Entry

Bid-Based Model: Indian Railways issues RFQs and RFPs, awarding operations based on bids offering the maximum revenue share.
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Track Access Charges: Private players pay per-km charges (~₹512/km estimate) to use infrastructure—covering tracks, stations, and related overheads.
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Performance Metrics:
- Punctuality holds a 95% weightage.
- Reliability must remain above 1 failure per 100,000 km.
- Penalties apply if KPIs aren’t met.
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Technical & Safety Requirements:
- Trainsets must be modern, capable of speeds up to 160 km/h.
- Must undergo safety certifications and trial runs.
Fair Access Guarantee: Railways must provide non-discriminatory infrastructure access, even though its own trains may compete on the same routes.
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3. Industry Response & Market Interest

A 2020 RFQ attracted 120 bids from 15 companies, including L&T, GMR, and Welspun, aiming to operate on 109 routes.
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This marks a significant shift in policy, introducing public–private participation (PPP) in passenger services—while retaining Indian Railways ownership of infrastructure.
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4. Differentiating Public vs. True Private Trains

Trains like Tejas Express, though referred to as “private,” are run by IRCTC, a government-owned entity. True private operations involve fully independent operators.
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5. Key Challenges & Industry Concerns

Operational Complexity: Managing high-speed services on shared tracks alongside slower passenger/mixed traffic poses scheduling and capacity challenges.
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Profitability Questions: Passenger train operations are traditionally low-margin; success depends on ensuring demand and maintaining high load factors.
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Union Resistance: Trade unions have expressed concerns over potential fare hikes and employment impacts—drawing parallels with other privatized rail models globally.
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Summary Table

Feature	Details
Operational Model	Fully private operators manage trainsets, fares, and services
Revenue Arrangement	Bidding model with revenue sharing and track access fees
Performance Standards	High requirements for punctuality and reliability (>1 failure/100k km)
Regulatory Oversight	Safety certification and fair infrastructure access ensured
Stakeholder Response	Growing industry interest; unions remain apprehensive

Bottom Line

Indian Railways has officially opened the door to privately run passenger trains, signaling a landmark policy shift toward PPP. While industry interest is strong, operational feasibility, commercial viability, and stakeholder acceptance remain critical areas to monitor.

Let me know if you’d like details on specific routes shortlisted, bid timelines, or technical criteria for private operators!