+
Railways reevaluates bidding process worth Rs 30,000
RAILWAYS & METRO RAIL

Railways reevaluates bidding process worth Rs 30,000

The Indian Railways is reevaluating the ongoing bidding process for private passenger trains worth Rs 30,000 crore. They are doing it because the bidding failed to earn the interest of private players for the tender floated the previous year to operate such train services in 12 clusters across the rail network.

As per the senior officials quoted in a PTI report, only three of the 12 clusters witnessed a bid.

An official told the media that the tenders of the current process may or may not be discarded post the review. The Railway Minister opened bids for the private players to participate in operations of passenger trains in twelve clusters in July last year. The plan included 109 origin-destination pairs, and also the winning bidders were provided with a 35-year concession period on a revenue basis model.

Overall, 16 private sector companies expressed their interest in the private train project during RFP last year. This number decreased significantly in the recent RFP stage (financial bidding), with only two bidders stepping forward.

As indicated by the sources quoted in the report, the Indian Railway Catering and Tourism Corporation (IRCTC) and Megha Engineering and Infrastructure Limited were the only companies that submitted bids for three clusters, while all other bidder firms withdrew, mentioning the concession rules favouring the national transporter.

Initially, the Indian Railways planned to launch private train services in phases, with the first dozen of trains due to begin operating in the financial year 2023-24 and the remaining 151 trains by 2027 in July last year. Currently, the Minister of Railways went back to the drawing board to chalk out the procedures of the entire project from scratch.

Image Source


Also read: Railways reworks on bidding contracts for operating express trains

The Indian Railways is reevaluating the ongoing bidding process for private passenger trains worth Rs 30,000 crore. They are doing it because the bidding failed to earn the interest of private players for the tender floated the previous year to operate such train services in 12 clusters across the rail network. As per the senior officials quoted in a PTI report, only three of the 12 clusters witnessed a bid. An official told the media that the tenders of the current process may or may not be discarded post the review. The Railway Minister opened bids for the private players to participate in operations of passenger trains in twelve clusters in July last year. The plan included 109 origin-destination pairs, and also the winning bidders were provided with a 35-year concession period on a revenue basis model. Overall, 16 private sector companies expressed their interest in the private train project during RFP last year. This number decreased significantly in the recent RFP stage (financial bidding), with only two bidders stepping forward. As indicated by the sources quoted in the report, the Indian Railway Catering and Tourism Corporation (IRCTC) and Megha Engineering and Infrastructure Limited were the only companies that submitted bids for three clusters, while all other bidder firms withdrew, mentioning the concession rules favouring the national transporter. Initially, the Indian Railways planned to launch private train services in phases, with the first dozen of trains due to begin operating in the financial year 2023-24 and the remaining 151 trains by 2027 in July last year. Currently, the Minister of Railways went back to the drawing board to chalk out the procedures of the entire project from scratch. Image Source Also read: Railways reworks on bidding contracts for operating express trains

Next Story
Infrastructure Transport

Railway Board Approves Budgam–Delhi Parcel Train

The Railway Board has approved the launch of a Joint Parcel Product–Rapid Cargo Service (JPP-RCS) for the Jammu division. The train will operate daily between Budgam railway station in the Kashmir Valley and Adarsh Nagar in Delhi.The service will comprise one seating-cum-luggage rake and eight parcel vans. To support traders, loading and unloading facilities will be provided at Bari Brahmana station. Initially, the cargo service will run on a pilot basis, with security arrangements ensured by state police.Officials said the initiative is designed to increase the railways’ share in the cour..

Next Story
Infrastructure Energy

PFC Secures EUR 150 Million Loan from KfW to Fund RDSS Projects

Power Finance Corporation (PFC) has signed a loan agreement worth EUR 150 million with Germany’s KfW to finance projects under the Government of India’s Revamped Distribution Sector Scheme (RDSS).The funding will support initiatives aimed at improving the operational and financial efficiency of power distribution companies across the country.Parminder Chopra, CMD, PFC, said, “PFC has been at the forefront of financing and enabling reforms in India’s power distribution sector. This new line of credit will help in realising Government’s vision of ensuring reliable, affordable, and sust..

Next Story
Infrastructure Energy

PM Launches Rs 68.80-Bn Buxar Thermal Power Plant, Key Projects in Bihar

Prime Minister Narendra Modi on Friday inaugurated a series of projects in Bihar, including the Rs 68.80-billion Buxar thermal power plant from Gayaji district.The thermal power plant is expected to significantly enhance power generation, strengthen energy security, and cater to the rising electricity demand in the region.The Prime Minister also flagged off two new trains – the Amrit Bharat Express between Gayaji and Delhi, and the Buddhist Circuit train between Vaishali and Koderma, aimed at improving connectivity and tourism across key Buddhist destinations.In the healthcare sector, he ina..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Talk to us?