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Context: On July 1, 2020, the Indian Railways launched the formal process of inviting private parties to run trains on the Indian railway system. Bids were finally opened last month.
Reasons for their failure
Remove the lumpiness of investment by establishing rolling stock company
The central issue is how to align the three interests.
Establish a company to lease rolling stock: The above 3 interests can be aligned provided the lumpiness of investment in train sets can be eliminated by establishing a company that leases rolling stock not only to concessioners but also to IR.
Bring in new technology by opening IR’s rolling stock market to international manufacturers
Investment in research
Make changes to attract private investors: For attracting private players, the risks for the concessioners needs to be reduced.
By: Shubham Tiwari ProfileResourcesReport error
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