House panel for increased private participation in rail infrastructure

The committee also suggested that the railways should improve its finances by undertaking a comprehensive review of its passenger fares - which are typically subsidised by up to 46 per cent

After a heated debate on railway privatisation in the Lok Sabha during the current session, the parliamentary standing committee has advised the national transporter to explore ways to increase private sector participation in its infrastructure.

 

“The committee is of the opinion that the modernisation of Indian Railway infrastructure demands huge capital investment. The committee feels there is ample scope for improvement in Railways’ infrastructure and a need to significantly increase its planned expenditure,” according to the panel’s report on the Ministry of Railways’ demand for grants.

 

In the Lok Sabha last week, Opposition members strongly criticised the Railways Amendment Bill, 2024, calling the move a backdoor entry for privatisation. This claim was refuted by Union Railways Minister Ashwini Vaishnaw during his reply in the lower house.

 

 

The committee also suggested that the railways improve its finances by undertaking a comprehensive review of passenger fares, which are typically subsidised by up to 46 per cent.

 

The committee feels that ‘general class’ travel must remain affordable for the masses but at the same time it urges Indian Railways to review its revenues with regard to AC classes by aligning it with costs incurred to reduce losses in passenger segment.

 

“The panel also urged Indian Railways to conduct a comprehensive review of its operating expenses for passenger trains and rationalise these costs to ensure affordability of its ticket prices,” the report said.

 

The committee expressed concern over the slow progress of Kavach implementation across the railway network. Kavach is an anti-collision system designed to prevent accidents through an array of on-track and in-train technological installations.

 

So far, Kavach has been deployed on 1,465 route kilometres of the South Central Railway and 80 route kilometres of the North Central Railway.

 

“The Committee is also aware that tenders have been invited for the Delhi-Chennai, Mumbai-Chennai, and other important corridors. The committee feels there is an urgent need to speed Kavach-related works and ensure faster deployment across the Indian Railway network,” the panel said.

 

The government is currently working on a phased rollout plan for Kavach, but it has faced criticism from the Opposition, particularly in the wake of major railway accidents.