UPSC Current – Private train operations: L&T, GMR, Welspun to participate in RFP stage for 12 clusters
Private train operations: L&T, GMR, Welspun to participate in RFP stage for 12 clusters
Why in News?
- Firms like L&T, GMR, Welspun are among top firms that have been found eligible to participate in the RFP stage for private participation in passenger train services over 12 clusters comprising 151 trains, according to an official statement on Thursday.
- The railway ministry received 120 applications from 16 firms at the RFP stage, out of which 102 applications were found eligible for the RFP stage.
- The project envisages private investment to the tune of ₹30,000 crore for running passenger trains over the rail network for the first time.
- The private entities for undertaking the project would be selected through a transparent two-stage competitive bidding process comprising request for qualification (RFQ) and request for proposal (RFP).
Reason Behind Privatisation:
- To develop India’s railway infrastructure to provide travel services to all its passengers.
- According to the 2019-20 data, the Railways ferried 8.4 billion (840 crore) passengers in 2019-20, about five crore passengers could not be accommodated, meaning their wait-listed tickets were dropped.
- During the busy seasons/summer season nearly 13.3% passengers were not able to get confirmed reservations.
- Induction of modern technology and reduction in transit time and the demand-supply deficit in train tickets.