Decoding Privatization Of Passenger Trains

India has the fifth largest railway network in the world where the Ministry of Railways, Government of India (MOR) manages and operates trains on the Indian Railway (IR) network. Despite the size of the network, there is a huge unmet demand due to capacity constraints resulting in loss of passenger business to other modes of transport. This has resulted in a critical requirement for next generation technology and the provision of higher service quality to ensure improved coach experience and reduced journey time.

With the objective of improving user experience, the MOR has decided to permit private parties to undertake passenger train operations on selected routes on public private partnership. Some key critical factors in this regard are discussed below.