Indian Railways plans to lease train coaches to private companies

14 Sep 2021 CW Team

In an effort to boost public access to rail-based tourism, the Indian railway is leasing coaching stock to interested parties for use as theme-based cultural, religious, and other tourist circuit trains.

According to a statement from the Ministry of Railways, the purpose of the act is to tap the potential of the tourism sector and to leverage the core strengths of tourism professionals in tourism activities such as marketing, hospitality, service integration, customer base reach, expertise in tourist circuit development, and so on.

Leasing of coaches in the configuration desired by interested parties.

Leases are also available for bare shells.

Coaches can be purchased outright as well. Coaches may be refurbished to a limited extent.

Leasing must be done for a minimum of 5 years and can be extended until the coaches reach the end of their useful life. As per policy guidelines, the minimum train composition for leasing purposes is.

Develop/decide on a business model by interested parties (routes, itinerary, tariff etc). The simple registration process is based on eligibility criteria for interested parties.

Haulage fees, nominal stabling fees, and lease fees will be charged by Indian Railways.

Punctuality is given top priority. Approval of coach refurbishment and itineraries in a timely manner.

For maintenance runs, there is no need for haulage. Third-party advertising is permitted inside the train, as train branding.

Vistadome coaches have the potential to unlock the traffic potential on tourism routes and destinations that were being phased out by Indian Railway before COVID.

Vistadome coaches have the potential to unlock tourism demand and are a natural fit for a private sector privatisation package, such as the mountain railway, which is currently being considered.

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Also read: Indian Railways to operate 102 Vande Bharat trains by March 2024

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