PVT PLAYERS MAY MANAGE ALL RLY STATIONS

Aims to earn Rs 16k cr in five years through non-fare revenues

NEW DELHI: Aiming to add some more revenues to its exchequer under its Nonfinancial Revenue plan, the Indian Railways is mulling to outsource maintenance and management of all stations to private players. The railways is aiming to earn about Rs 16,000 crore in next five year through non-fare revenues.

According to a senior official, the ministry has also proposed to handover the selling of platform tickets to private players through vending machines and ticket counters.

“The objective behind the move is to keep the focus of ministry on running trains instead of managing allied services. The Railways is aiming to generate ‘good’ revenue by allowing the entry of private players to manage the affairs of stations,” the official said, adding that the private players would have to deposit a fixed amount to Railways for getting the station maintenance and management rights.

The railways is also tweaking its policy to increase the lease period of from existing 45 years to 99 years and has decided to allow sub-contracting in the revised norms. As the railways is in talks with asset management companies to monetise its land resources, the ministry is considering to allow business consortiums to participate in the tendering process, the official added.

Citing the reasons behind allowing subletting clause, the official said, “The government is making it official, which is ‘unofficially’ in practice. The subletting would create employment opportunities for youth and generate revenues for the ministry.”

“The private players would be allowed to earn through advertisements or other alternative models of revenue generation by using the space provided in the retiring rooms, canteens, stations areas, etc as per the policy of the department,” the official said, adding that provisions have been made to rope in multiple vendors for maintenance work of about 8,495 railway stations in the country.

Talking about engaging private players for the sale of platform tickets, the official said, “Handing over the platform ticket dispensation to private players doesn’t mean that they would sell tickets during festive rush hours. They have to adhere to orders of the railways whatsoever it may be as per the need. The ministry is in the process to finalise a workable solution so that their business doesn’t get affected by some conditional decisions.”

The national transporter has earned Rs 17,204.06 crore through booking of tickets online and Rs 28,119 crore in offline booking in the year 2015-2016, while it earned Rs 19,209.28 crore in online booking and Rs 28,468.81 crore in offline booking in 2016-2-017.

The revenue generated through tickets in 2015-2016 was Rs 45,323.93 crore which increased by Rs 2354.16 crore in the next year.