Indian Railways to Roll Out Private Trains

In a bid to provide cutting edge technology, better amenities and services to passengers, the government may soon start leasing out its passenger corridors and branch lines to private players on several important routes like Delhi-Mumbai and Delhi-Howrah. This will be codifying the first step towards privatisation of the world's fourth largest rail network. The railways will have 150 private trains with 16 coaches each by 2024.

Private operators might even be allowed to bring in their own loco-drivers certified by the IR for security and safety reasons. An investment of Rs. 16000 crores is expected from private operators for the privatisation of trains. There is no doubt that the IR’s financial capacity continues to be a concern as its earnings have not flourished. The trains are estimated to reach 160 kmph on some chosen routes. The operators of the trains will be deciding the fares.

The introduction of private passenger trains, however, is not going to be easy considering the potential opposition from railway trade unions and political parties. Though the IR has for the last 13 years allowed private players to operate container trains on its tracks, the very words “privatisation” and “private train” are not well received amongst a section of the railway fraternity. They have to convince its own workers and trade unions that getting private trains won’t rob them of their jobs.

Yet, the deployment of 150 technically superior and faster train-sets will give the IR a facelift. After all, if one Vande Bharat Express had caught the imagination of the entire nation, imagine what 150 stylish ones will do.

Comments

Stagflation: A Threat to India

India is entering into the stage of stagflation, just 2 years ago it was expanding at 8% and emerging as a major global player, the situation has come down to this. With higher prices of food, The new citizenship act, and the central bank's target, India is meeting its slowest development in a decade. The inflation in December 2019 increased to 7.35 percent which was the highest since July 2014, which is past the RBI limit of 6%. But what led to this situation? We have had demonetization in 2016, the implementation of GST followed by many other policies but what led to this? Let's look at some facts. The consumption of volatile oil makes up about 60% of gross domestic product which puts off all the investment plans. Economic growth in the fiscal year through March 31 is set to slow to an estimated 5%. Teresa John, an economist at Nirmal Bang Equities Pvt in Mumbai, quoted “The recovery is likely to be very gradual and a stagflation scenario is likely. ” The government has...

Changing Environment For Local Business In Sri Lanka; Government Initiates The Revolution

Local industries and businesses are the backbone of the economy of any country. Additionally, Sri Lankan Government defines a local company as one with a minimum ownership of 51% of a Sri Lankan. To help these companies grow, the Sri Lankan Finance Ministry has proclaimed a circular enlisting the priorities to the local companies. Moreover, this move from the government may bring some salient alterations in the condition of the local manufacturers. The government has also come with up steps that will augment the local industries across the different domains. These domains include IT sector, construction, etc. The circular, as issued by the government includes relevant documentation regarding sourcing of resources and products. Additionally, sources point towards the fact that the government is hoping to extend support to the domestic sector and help them grow. Besides, the major focus is on the three sectors- IT software and hardware, construction and furniture and allied products. Pos...

Significance of the “Developed Country” Tag for India

By Xeena Mehta The officials of the United States Trade Representative (USTR) uphold a list of countries that categorises countries as “developing”, “developed”, and “least-developed”. Countries that are classified as “developing” have permissions to export certain goods to the U.S. without being hit by heavy legal tariffs that are bind to be imposed on goods from “developed” countries. The “developing country” tag was originated by U.S. Trade Act of 1974, to aid poor countries develop faster. World Trade Organization also acceded to grant trade benefits to countries that were classified as poor. If noticed we can see that about two-thirds of countries that are members of the WTO classify themselves as “developing” countries and avail fore deals. Any such classification of whether a country is “developing” or not is entirely objective. While the economic progress achieved by India and China have achieved over the last few decades is seen as a valid reason to get rid of their s...

Entrepreneur Digest

Search This Blog