Indian Railways: Bidding process extended in Private Player Train project by one month

The bidding process for the Private Player Train project will be extended for a month. The project will now invite bids from private players till October 7.

Previously, the bids were supposed to be handed over by September 8.

On August 12, The private companies involved in the bidding process had asked for more time and requested to extend the date of bidding from September 8.

Thereafter, a decision was taken by Indian Railways on August 21 to extend the bidding time by one month.

At least 23 private companies participated in the second and final pre-bid meeting and expressed interest in the private player train project.

The first round of pre-bid meeting was very successful with as many as 16 prospective applicants or private players participating. These included: GMR Group, PSUs, BHEL, RITES, IRCTC, Bombardier, Medha Engineering, Bharat Forge, Gateway Rail, and even Australian firm CAF.

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.

Railways have 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.

Railways aim to complete the bidding process and get the first private player-operated train running on the tracks by March 2023.

The Union Minister of Railways, Piyush Goyal, has made it clear that the private player-run train project is not knock-on privatization in Indian Railways. The government has been consistently claiming that the biggest benefit from the arrival of a private player will be incurred by the rail passengers.