“Private players are being roped in to modernise rail infrastructure” CEO of the reconstituted Railway Board, speaks to on the potential of public-private partnership in revamping the railways.
The decision to introduce private passenger trains brings back the question of urgent railway reforms and a regulator. A. We have gone for a publicprivate partnership as the railways will need to enhance capacity by 2024. But this isn’t the privatisation of railways. We expect more investments flowing into the manufacturing of rolling stock and locomotives. About the regulator, a notification came in May 2017 for the formation of the Rail Development Authority. It’s a work in progress. The first batch of private trains will be operational by March 2023. By then, a regulator will be in place.
Q. How will private train fares be determined? A. Freight tariffs and passenger fares are determined by member (traffic) of the Railway Board. We have made it clear in the requests for qualifications document that private players will pay haulage charges. They can, however, set their own fares and rates for food, advertisements, etc. But the fares will need to be comparable with those of the Indian Railways.
Q. How do you plan to increase private capital inflow into the freight segment?
A. The railways faces a capacity constraint, but once the eastern and western dedicated freight corridors come up, we can introduce multiple operators. That is why a regulator is needed to take care of both [passenger and freight] operations.
We are gradually taking steps to involve private players in the modernisation of railway infrastructure.
Q. What’s the status of the RITES plan for corporatisation of rail manufacturing units?
A. In the past few years, our manufacturing units have not only improved on quality, but also enhanced output. We are now manufacturing more coaches and locomotives. CLW (Chittaranjan Locomotive Works) was manufacturing 6,000 HP locos. With the help of Alstom, the production of 12,000 HP locos started. This year, CLW developed a 9,000 HP loco.
Secondly, we want to diversify and even manufacture metro rail coaches, which are currently being imported. Thirdly, with the units producing double their capacity, we are looking at exports. Corporatisation of the production units will help achieve that. We need to have constructive dialogue with our trade unions and employees. We need to also ensure that RITES develops a model that does not do any harm to any railway employee.