Refer - Financial Express
Enrich the answer from other sources, if the question demands.
IAS Parliament 4 years
KEY POINTS
The proposed introduction of private passenger trains on select routes can be a win-win for private players and the Indian Railways (IR) alike, provided niggling issues are addressed to clear the tracks.
Better Services
· It would improve its financials, given the massive losses it incurs in the passenger segment.
· As per a NITI Aayog report, 77-80% of the total losses in the passenger segment are in the non-suburban segment, within which IR incurs losses in all classes save for 3rd AC.
· The proposed model, if scaled up, could help IR reduce such losses and allow it to have profitable earnings. It could also save on the capital expenditure to be incurred on its plan to replace ~40,000 outdated coaches with Linke Hofmann Busch coaches.
· The move would help bridge the demand-supply gap. The resultant increase in capacity would enable IR to capture passengers unserved by it, which stood at 8.85 crore in fiscal 2019.
· It would make rail travel more competitive vis-à-vis air travel – the growing aviation sector has been weaning away passengers from the premium category.
· The entry of private players is expected to lead to introduction of new-design trains with improved passenger amenities and travel comfort as well as value-added and on-demand services.
· Such enhancements and improved service levels, together with punctuality of trains and targeted marketing by the private players, could help the railways retain and wean back passengers.
· Overall, the proposed initiative augurs well for the railways in India. At the very least, it would usher in competition, ultimately benefitting the customer.
JSJ 4 years
Please review
IAS Parliament 4 years
Good attempt. Keep Writing.
Tapasvi 4 years
Kindly review
IAS Parliament 4 years
Good answer. Keep Writing.
