Indian government launches procurement process for passenger train service privatization

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The Indian Railways has launched a tender notice seeking private railway operators to operate and manage passenger services at 109 origin destinations involving use of 151 new trains. The trains will include 16 coaches propelled by locomotive provided by Indian Railways. The private partner will be responsible for financing, procuring, operating, and maintaining the new passenger coaches.

The 109 destinations will be divided into twelve regional clusters. The expected investment value is INR 300 billion (US$ 4 billion). The concession period for the project is 35 years. The private partner will provide fixed haulage charges, consumption-based energy charges, and a share of gross revenue to the authority.

Authority will be responsible for drivers and guards for the trains and private partners will be responsible for punctuality, reliability, and upkeep of trains as well as services. The operation and maintenance standards will be specified by the authority. 

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