In what could be perceived as a “backdoor” entry for private players in the Indian Railways, the Centre is considering engaging private players to run passenger trains, coined as theme-based trains for religious, tourism, hospitality and other activities.
According to a policy being formulated by the Ministry of RÃ ilways, the national transporter’s new regime led by Ashwini Vaishnaw is now looking at professionals from the tourism sector to utilise its train coaches for rail-based tourism.
The Railways wants to lease and even sell train coaches to private players for leveraging their expertise in tourism activities, a top Rail Ministry official said.
The private players can run these coaches as cultural, religious or any other tourist circuit train, the Ministry of Railways said in a statement on Saturday.
“To tap the potential of tourism sector and to leverage the core strengths of the professionals of tourism sector in tourism activities like marketing, hospitality, integration of services, reach with customer base, expertise in development and identification of tourist circuits, etc., Indian Railways is planning to spread rail-based tourism among masses through leasing of coaching stock to interested parties to run them as theme-based cultural, religious and other tourist circuit train,” the Ministry said in a statement.
An Executive Director-level committee has been constituted by the Railway Ministry to formulate the policy and terms and conditions for this project.
So far, the broad features of the proposed model have been formulated. These include coaches to be leased as per desired configuration of interested parties. They can also take bare shells on lease or purchase coaches. Sources said that private players will have to lease or buy a train with at least 16 coaches.
Lessees and buyers will be allowed to make minor refurbishment to coaches. The lease will run for a minimum of five years and can be extended till the codal life of coaches. Codal life refers to the maximum service life of a coach, beyond which it has to be mandatorily replaced.
“The business model will be decided and developed by the private player. This will include route, itinerary, tariff, etc,” a senior railway official said.
Sources said the Railway Ministry has promised that the registration process for interested parties will be simple, based on eligibility criteria.
Indian Railways will levy haulage charges, nominal stabling charges and lease charges. No lease charges will be taken if the coaches are purchased.
Punctuality will be given priority. Also, coach refurbishments and itineraries will be promptly approved. There will be no haulage charge for maintenance runs.
Once leased or sold, third-party advertisements will be allowed inside the train coaches. Branding of trains will also be allowed, added the Ministry statement.