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Aparna
Aparna

Aparna

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Aparna
Asked: October 18, 20212021-10-18T20:05:48+05:30 2021-10-18T20:05:48+05:30In: Economics

What is Plan to privatise the railways?

Plan to privatize the railways.

current affrairsinfrastructure
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      [Deleted User]
      2021-10-18T20:14:49+05:30Added an answer on October 18, 2021 at 8:14 pm

      Context:

      In a big step towards public-private partnership, the Indian Railways has invited proposals from private entities to run trains on 109 origin-destination (OD) pairs of routes using 151 modern trains.

      About:

      • Railways were first introduced to India in 1853. By 1947, the year of India’s independence, there were forty-two rail systems.
      • In 1951 the systems were nationalized as one unit, becoming one of the largest networks in the world. Indian Railways operates both long-distance and suburban rail systems.
      • Now, it is among the four largest rail networks in the world, along with the United States, China, and Russia, although every kilometer of track in India covers a geographical area much less than Germany, Russia, China, or Canada, indicating scope for expansion.

      Background:

      In 2015, the expert panel chaired by Bibek Debroy recommended that the way forward for the railways was “liberalization and not privatization” in order to allow entry of new operators “to encourage growth and improve services.

      The objective of the Scheme

      • The objective of this initiative is to
        • Introduce modern technology rolling stock with reduced maintenance, reduced transit time boost job creation
        • Provide enhanced safety
        • Provide world-class travel experience to passengers
        • Reduce demand-supply deficit in the passenger transportation sector.

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