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  • Government to allow private railways to set their own fares

Government to allow private railways to set their own fares

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Headlines September 19, 2020
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As the Narendra Modi led central government allows partial privatization of Indian railways, it announced that companies will have the freedom to set their own fares. Central government, struggling to bring back the economy to normal after Coronavirus pandemic, lockdowns and crisis had decided to partially open up railway sector to private companies a few months back.

VK Yadav, chairman of Railway Board said that though private companies have been allowed to set their own fares, they must keep in mind that air-conditioned buses and planes are also plying on the same routes.

Modi government has invited private companies to not just operate trains but also modernize stations and introduce other facilities. Bombardier Inc, GMR Infrastructure Ltd, Adani Enterprises Ltd and Alstom SA are some of the companies that have expressed interest in railway projects which are likely to begin and be implemented in the next five years.

Indian railways, one of the oldest railway networks in the world, is the main transportation means for lakhs of people from economically backward groups as well as for cargo to be transported across states.

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