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Indian Railways proposes policy to lease railway coaches

Monday, 13 Sep 2021

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The Indian Railways is formulating a policy to lease and buy railway coaches to private parties to run theme-based cultural, religious and other tourist circuit trains.

An Executive Director-level Committee has been constituted by the Ministry of Railways to formulate the policy and terms and conditions of the project.

Indian Railways is planning to spread rail-based tourism among masses through leasing of coaching stock to interested parties to run them as theme-based cultural, religious and other tourist circuit trains.

Coaches may be leased as per the desired configuration of interested parties. Bare shells may also be taken on lease. Outright purchase of coaches can also be done. The plan is that the interested parties have to buy or lease a train with a minimum of 16 coaches.

The proposed model will allow private parties to conduct minor refurbishment of coaches and leasing of coaches for a minimum period of five years and extendable till codal life of coaches.

The interested party will develop or decide on the business model (routes, itinerary, tariff). Indian Railways will levy haulage charges, nominal stabling charges and lease charges, while no lease charges for outright purchase.

Priority will be given to punctuality, timely approvals for coach refurbishment and itineraries. There will be no haulage for maintenance runs, third party advertising will be allowed inside trains and branding of trains will also be permitted.