Privatisation of Indian Railways

In June, 2020, the Ministry of Railways took the first step towards privatisation of railways by inviting Request for Qualifications (RFQ) to private players for operation of passenger train services.

  • Under this at least 151 modern trains will be introduced and 109 pairs of routes will be planned out for private train operations.
  • Private participation in passenger train operations will only be 5% of the total operations of Railways. 95% of trains will still be run by Indian Railways.

Reasons behind Privatisation

  • It seeks to develop India’s railway infrastructure to provide travel services to all its passengers.
  • According to the 2019-20 data, the ....
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Indian Economy