Private Train Project: IRCTC And Megha Engineering Compete For Three Clusters; Bidder Who Offers Higher Revenue-Sharing With Railways Likely To Bag Deal

Indian Railway Catering and Tourism Corporation (IRCTC) and Megha Engineering and Infrastructures Limited (MEIL) are in the race for operating trains in Mumbai and Delhi sectors as the bids for PPP in the passenger train operations project opened on Friday.

A first in Indian Railways, bids were received for operating 29 pairs of private trains with 40 rakes falling under two clusters in Delhi and one cluster in Mumbai zones with an investment of around Rs 7,200 crore.

However, according to sources, while one bidder has quoted over 10 per cent as revenue sharing with the Railways, the other one has quoted less than one per cent.

Revenue sharing with the Railways was the main criteria for selection of the successful bidder.

It seems the company which has quoted over 10 per cent in revenue sharing is likely to get the award, sources said. Expecting high footfalls, the bidders have shown interest in Mumbai and Delhi sectors.

The Railways will expeditiously complete the evaluation and decide the bids, according to the ministry.

Since the bids have been received for only three clusters, the Railways would float another tender for the remaining nine clusters that was offered for private train operations.

Considered to be a bold move, the PPP initiative is expected to pave the way for operations of private passenger trains in Indian Railways.

"Bids from private and public sectors to operate 29 pairs of trains with around 40 modern rakes entailing an investment of around Rs 7,200 crore have been received," the ministry said in a statement.

Asked why only two players came forward to participate in the bids, a senior railway official said currently, the market sentiment is down due to the pandemic and as a result, not many could join the race.

In response to a Parliament question on Friday, Railway Minister Ashwini Vaishnaw informed the Rajya Sabha that existing passenger train services shall not be affected by the operation of train services through PPP mode and these will be in addition to the existing train services.

"These trains shall offer services better than existing Rajdhani/Shatabdi types of trains which will include improved passenger comfort, efficient air conditioning with automatic temperature and humidity control, superior interiors and toilets, friendly access to differently abled (divyangjan) passengers, GPS-enabled passenger announcement system for on-board announcements for station arrivals, and safety announcements,” Vaishnaw said in the written reply.

The national transporter has said the operational infrastructure such as track, signaling, Over Head Equipment (OHE) and stations will remain with the Railways and will be used to run these trains.

The crew (drivers and guards) required for operation of trains through PPP mode shall be provided by Indian Railways and hence the railway employees will remain a vital part of PPPs in passenger train operations projects.

The Railway Ministry said that the bids for PPP in passenger trains were opened after a detailed exercise and multiple rounds of discussion with industry players.

"This is an entirely new attempt to bring world class trains through Public Private Participation (PPP) in India," it added.

After multiple rounds of discussion with industry players, the bids for PPP in the passenger train operations project were opened on July 23.