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Government Moves Towards Privatising Railways: What Would More Public-Private Partnership in Indian Railways Mean?

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Last week, the Government, initiated the process to allow private companies to operate passenger trains on the Indian Railways network, dubbed as the lifeline of the nation. It released Request for Qualifications (RFQ) proposals - for scrutiny of vendor capabilities - inviting private players to run 151 modern passenger trains on 109 origin-destination routes.

The proposal has drawn interest from some top players, including the Tata Group, Adani Group, Alstom, and Miami-based Norwegian Cruise Line, the world’s third-largest cruise line in terms of the number of passengers. As per reports, India’s largest private carrier, IndiGo, and online travel major MakeMyTrip have also sent in inquiries.

We discuss how the privatisation of Indian Railways might play itself out, and have a look at the benefits and potential headwinds.

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