Rail Operation by Private Firms on IR Network not permissible: MOS (Rlys.)

Private Freight Terminal Services on PPP Model acceptable; says MOSR in Parliament

mosr parlNew Delhi: Rail operation on Indian railway network by private firms is not permissible, said MOS (Railways) Mr.Manoj Sinha. However, he added, “private firms can transport commodities using Indian Railway network in containers and can also develop freight terminals”. The permission to run container trains by private players is in vogue since 2006 and so far 17 companies have taken license to run containers trains on Indian Railways of which 15 are active. Under the scheme the rakes are owned by Container Train Operators and Indian Railways has the exclusive right to haul the brakes on its networks. Private freight terminals are developed under Private Freight Terminal Policy of 2010 which was revised in 2015. So far 59 proposals of Private Freight Terminal (PFT) have been received out of which 24 terminals have been notified and 35 granted ‘in principle’ approval.

On the Zonal Railways, no passenger/freight train services are currently operated by the private sector. However, Container services offered by licensed private players are operated by Indian Railways. Such services are operated on Pan-Indian Railway basis instead of Zonal Railway basis. The income earned from such operation in 2014-15 was Rs. 4868.92 crore (Provisional). Policy instructions exist for operation and maintenance of retiring rooms at stations through private licensees on payment of annual license fees. Public toilets at more than 850 railway stations have been brought under the ‘Pay & Use’ scheme with the participation of private sector. Instructions have been issued for operation of passenger ticketing terminal through authorized agents on fixed licenses and commission sharing basis, under the Yatri Ticket Suvidha Kendra (YTSK) scheme. The likely revenue from recently introduced Yatri Ticket Suvidha Kendra (YTSK) scheme cannot be assessed at it is dependent on demand.

Such partnerships encourage investments and result in better services to users and have no direct impact on number of employees.

This information was given by the Minister of State for Railways Shri Manoj Sinha in a written reply to a question in Lok Sabha today.