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Write a brief note on the Private Public Partnership in Indian Railways.

Introduction:

India is looking towards a more sustainable and competitive economy. To achieve this India is allowing private players in the fields which were earlier restricted to only government. India is looking towards the more efficient Public-Private Partnership models rather than completely privatizing the sectors. Indian railways is also in this direction allowing private companies to participate in core activities like operation of trains, maintenance of tracks, construction and management of railway stations, etc

Body:

Indian railways has recently received the bids from public & private corporations to operate 29 pairs of passenger trains within the country. These are high demand routes. The existing capacity of trains is not sufficient in these routes. Thus, the inclusion of private companies will provide an advantage.

Under this model, the private companies will provide the service and the government officials will be appointed to maintain the infrastructure of tracks and other operations. Private companies will be allowed to finance, procure and operate the trains in these identified routes.

Advantages

• Increased competitiveness
• Bridging the supply-demand gaps
• Provides safety & other world class experiences to the commutors
• Boosts emloyment
• Reduction in travelling time
• Sufficient care in maintenance

Conclusion:

This model will be implemented extensively in the later stages. It is known to be a successful model due to the nature of the business conducted by the private companies. To withstand the market forces, decision making will be better in private companies which itself will contribute for the success. Faster decisions are important to run the businesses in today’s dynamic environment. Continuous control mechanisms will also help to achieve the intended benefits