Railway Ministry's private player train project receives 120 applications for 12 clusters, check full details

The Railway  Ministry on Wednesday received good response from private players for its private player operated trains project. All 120 applications have been received for the 12 Clusters, from 15 applicant firms.

The Railway Ministry had invited Request for Qualifications (RFQ) for private participation in the operation of passenger train services over 12 Clusters comprising 140 origin-destination pair of routes through the introduction of 151 modern trains to increase high-quality trains operated on the network.

This project is an initiative by the Railway ministry to attract private investments for running passenger trains over Indian Railway Network. 

The project is expected to entail private sector investment of about Rs 30,000 crores.

The private entities for undertaking the project would be selected through a transparent two-stage competitive bidding process comprising of Request for Qualification (RFQ) and Request for Proposal (RFP).

The RFQ for 12 clusters were published on July 1, 2020.  

Steps Ahead :

Railway Ministry will complete the evaluation of applications and Request for Proposal (RFP) documents will be made available to the qualified applicants by November 2020. 

The Centre has targeted to award all the clusters by February 2021.

Details of Participants

1. Arvind Aviation
2. BHEL
3. Construcciones y Auxiliar de Ferrocarrriles,S.A
4. Cube Highways and Infrastructure III Pvt Ltd
5. Gateway Rail freight Limited
6. GMR Highways Limited
7. Indian Railway Catering and Tourism Corporation LImited
8. IRB Infrastructure Developers Limited
9. L&T Infrastructure Development Projects Limited
10. Malempati Power Private Limited
11. Megha  Engineering and Infrastructures Limited
12. PNC Infratech Ltd
13. RK Associates and Hoteliers Pvt Ltd
14. Sainath sales and Services Pvt Ltd
15. Welspun Enterprises Limited

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The project is the most unique step of the Indian Railways so far, aimed at inviting private players to run passenger trains on 109 important routes of the Indian Railways. The Union Ministry of Railways has said that the mega project aims to bring new technologies, boost revenues, and increase job opportunities.

151 new trains, operated by private players, will run in addition to the trains which have already been functioning.

Private entities for undertaking the project will be selected through a two-stage competitive bidding process comprising of Request for Quotation (RFQ) and Request for Proposal (RFP).

The queries were mainly related to eligibility criteria, bidding process, procurement of rakes, operations of trains and composition of clusters.

There were a few queries on the haulage charges to which the Railway Ministry replied by stating that haulage charges will be specified upfront and will be suitably indexed for the entire concession period thereby bringing certainty in the haulage charges.

The ministry will also be providing the details of passenger traffic being handled on the routes under the bidding process. This will enable bidders to undertake their due diligence in the project.

Railways has clarified that trains that will be operated under the project can be either purchased or taken on lease by the private entities. It was clarified that risks with regard to the operation of trains shall be allocated to the parties in an equitable manner.