Planning the new business segment of private train operation in India, the Indian Railways has worked out critical principles for private operators — they will pay a substantial fine to the Railways if trains are late or even early and must ensure in any event 95 percent punctuality every year to stay away from monetary penalties.
Since it will be a revenue-sharing arrangement with the administration, Railways will depute its “agents” in the workplaces of the private organizations to see that they are announcing their income “honestly and faithfully.”
If real revenue is seen more than 1 percent of what is accounted for, the private firm will pay ten times the difference thereof as a penalty to Railways.
These are a part of the Key Performance Indicators for private players to slay when they run passenger trains in India. The Railways settled on the Draft Concession Agreement open for all on Wednesday, when the second pre-application meeting of forthcoming bidders occurred to talk about the doubts.
For each 1 percent decrease in the punctuality of a train from the ensured 95 percent, private operators should pay additional haulage charges worth 200 km of the train activity.
The haulage charge is Rs 512 for every km for every private train. This is the cash private trains must compensation to Railways for utilization of its framework and physical transportation of the train.
Additionally, for each train that shows up at the destination 10 minutes ahead of time, the private organization will pay the Railway’s incentive in the form of extra haulage charges for 10 km.
In any case, if a train loses 1 percent punctuality in a year for reasons inferable from the Railways, the last will pay the private organization harms equivalent to 50 km of haulage charges.
On the off chance that the train is canceled at that point, the private party will even now pay Railways haulage equivalent to one-fourth of the total haulage payable for that journey. And if such undoings add up to over a month in a year, the organization will pay Railways full haulage.
Then again, if trains are canceled because of any insufficiency of the Railways, it will pay the concessionaire one-fourth of the haulage as fine.
Nonetheless, if trains are delayed because of cattle or people run over, confusions, lousy weather, and such reasons beyond to control both the Railways and the private player, nobody will pay anybody any sum.
The deadline for the bidding process is September 8. Among big corporate names in the rundown were L&T Infrastructure Projects Development Limited and Siemens Limited. Bombardier, Alstom, Titagarh Wagons, CAF India, Gateway Rail, Sterlite Power of the Vedanta Group, BHEL, BEML, and IRCTC are among other significant bidders.