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Participation of corporate players is set to take off in World’s fourth largest rail network. Indian railways will soon begin lease out process of standalone passenger corridors and branch lines to private companies. These companies will be responsible for operation and maintenance of trains.

Mainly narrow and metre – gauge lines of colonial era hill stations will be leased out to private players. The total rail network of such lines is about 108,000 kilometres.

According to railway sources, unprofitable rail routes linking Siliguri-Darjeeling, Kalka-Shimla, Neral-Matheran, Kangra Valley and the Nilgiri mountains with the plains will be among the first routes that government will put up for bidding. Since existing policy allows 100% foreign ownership, therefore it is expected that few overseas companies might also participate for bidding.

A long-term concession agreements will be done with winning bidders. This will help railways to cut some flab as railway lose lots of money on such lines especially when all of such lines are now heritage therefore it requires lot of maintenance.

Companies will also have the flexibility to maintain and own stations on these proposed private lines. They may also be allowed to set different fares on these lines after the approval of the upcoming Rail Development Authority of India, which will be free to recommend fares.