The 109 OD Pairs have been formed into 12 clusters across the Indian Railway network. Each train will have a minimum of 16 coaches. The project will entail private sector investment of about 30 thousand crore rupees.
This is the first initiative of private investment for running passenger trains over Indian Railways network. Majority of trains will be manufactured in India and the private entity will be responsible for financing, procuring, operation and maintenance of the trains. Trains willl be designed for a maximum speed of 160 kmph. There will be a substantial reduction in journey time.
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, and also reduce demand supply deficit in the passenger transportation sector.
The concession period for the project will be 35 years. The Private Entity will pay to Indian Railways fixed haulage charges, energy charges as per actual consumption and a share in Gross Revenue determined through a transparent bidding process. These trains will be operated by the Drivers and Guards of Indian Railways.