The Finance Commission had now announced that private companies operating passenger trains in India will have to deposit a security deposit equivalent to 3 percent of its project cost to the railways and that the safe operation of private trains will be ensured by the government.
Private passenger trains!
A total of 151 private trains operates on 113 routes in India. The railway sector is making a huge contribution not only to the transport of the country but also to the development of industries. Thus the investment of private companies in this sector is taking place.
Private companies are somehow investing and taking the risks associated with it. The Public- Private Joint Valuation Committee has decided that there is no need to provide security deposit as it facilitates their business.
It has now been announced that private companies operating passenger trains in India will have to deposit a security deposit of 3 percent of its project cost on the railways. Private companies are investing up to Rs 30,000 crore in 12 clusters. Therefore, the estimated security deposit would be around Rs 1,000 crore.
In addition, the Ministry of Railways is currently processing “qualification requests” for private routes. Of these, 120 bids were received from 15 companies for 12 clusters. Approximately 10 auctions in the ongoing evaluation training have been found to be ineligible for a variety of reasons. Auctioneers include Larsen & Toubro, GMR and Bihel. It has also been announced that private companies will have to pay Rs .512 per km to the railways
1.Is railway private in india?
The latest “masterstroke” in modi’s government is the privatization of indian railways.
2.which railway station is private in india?
Habibganj railway station is private in india.