Hindustan Times (Delhi)

Railways to outsource ops at five rail stations

- Jyotika Sood jyotika.s@livemint.com

NEW DELHI: Indian Railways has decided to outsource operation and maintenanc­e of five railway stations to firms outside state control for 15 years to improve customer experience.

The railway stations, to be outsourced under the pilot project called the Integrated Station

Management, are Pune, Bengaluru, Secunderab­ad, Anand

Vihar (in New Delhi) and Chandigarh.

These five stations, along with undertakin­g the bidding procthe Habibganj railway station in ess.”

Bhopal, will take the number of The idea is to have expert manstation­s in India being privately agement firms on board that have managed to six. experience managing hotels too,

According to Indian Railways, the official said. the stations will be handed over The revenue sharing model for to state-run Indian Railways Stathe five stations is yet to be finaltion Developmen­t Corp. (IRSDC) ized, and will most probably be for a makeover. IRSDC will subbased on gross operating profit sequently invite bids from primodel (profit after subtractin­g all vate firms for operation and operating expenses) that is folmainten­ance of the stations. lowed by the hotel industry, the

The firms that win the conperson said. tracts will handle operations IRSDC managing director S K such as selling platform tickets, Lohia confirmed the developrun­ning station stalls, railway ment, but declined to comment display network, advertisin­g on further as the agreements have station and its premises and not yet been signed. parking. However, all core operaIndia­n Railways’ ambitious tions such as signalling and station re-developmen­t project is movement of trains will remain facing several hurdles, including with the Railways. concerns raised by Niti Aayog

A senior government official, and the finance ministry on fundon condition of anonymity, said: ing and leasing, the railways fail“Railways is in process of signing ing to find investors for brownagree­ments for handing over the field projects and real estate stations to IRSDC. Once it’s done, developers demanding more they will be responsibl­e for incentives.

theweekend­review

 ?? MINT/FILE ?? Railways Station Developmen­t Corp. MD S K Lohia
MINT/FILE Railways Station Developmen­t Corp. MD S K Lohia

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