Public Private Partnership in Procurement-Cum-Maintenance of Locomotives Model Concession Agreement

Abstract

During the past five years, the Indian Railways have significantly improved their commercial outlook and increased the profitability of their operations. Following this turn-around, the Railways have initiated an ambitious plan for augmentation of capacity and modernisation of its rolling stock, especially the locomotives and passenger coaches. It has also initiated the construction of a Dedicated Freight Corridor on the Delhi-Mumbai and Ludhiana-Howrah route. For improving and expanding container operations, the Railways have already allowed fourteen competing companies to operate container trains which were earlier operated by the Railway-owned Container Corporation that functioned as a monopoly. Yet, much remains to be done in terms of modernisation of technology, rolling stock and railway tracks. Creation of additional capacity at economical costs and within a given time-frame remain critical issues in the implementation of Railway projects.