Private companies can soon buy coaches, can run tourist circuit trains
Private parties will soon be able to hire and buy railway coaches to run themed cultural, religious and other tourist circuit trains, according to a policy being formulated by the Indian Railways. Railway said in a release on Saturday that an executive director level committee has been constituted by the Ministry of Railways to prepare the policy and terms and conditions of the project.
“To harness the potential of the tourism sector and to leverage the core strengths of tourism sector professionals in specializing in tourism activities such as marketing, hospitality, integration of services, outreach with customer base, development/identification of tourism circuits etc. Indian Railways is planning to spread rail based tourism among the public by leasing out the coaching stock to the interested parties to run them as theme based cultural, religious and other tourist circuit trains, the release said.
It said that the coaches can be “leased out as per the desired configuration of the interested parties. Bare shells can also be leased. Outright purchase of coaches can also be done.”
According to sources, the plan is that interested parties will have to buy or lease a train with at least 16 coaches.
This comes at a time when the Railways’ efforts to attract private players to run its “private trains” are getting little interest from India Inc.
According to the release, the proposed model will allow private parties to undertake minor renovation of coaches and leasing of coaches for a period of at least 5 years and to extend up to the codal life of the coaches.
The interested party will develop or decide the business model (route, itinerary, tariff).
“Indian Railways will levy freight charges, nominal stabilization charges and lease charges. (No lease charges for lump sum purchase),” the release said.
It said that punctuality, renewal of coaches and timely approvals for itineraries would be given priority.
It said that there would be no transportation for maintenance, third party advertising would be allowed inside trains and branding of trains would also be allowed.
(with PTI inputs)
Read also | Railways’ first attempt to disinfect trains using UVC robot
.