The regulator will be setup to deal with fares, allocation of routes and safety for trains run by private firms
Indian Railways will set up a regulator to fix a cap on fares for trains run by private players, The Times of India has reported. This will prevent a sudden surge in prices during festive seasons.
The report, quoting the Railway Board Chairman VK Yadav, suggests that the regulator will deal with fares, allocation of routes and safety for trains run by private firms.
"The trains and routes will be allotted through a transparent bidding process," Yadav told the newspaper, adding that several private players had expressed interest in running trains.
Moneycontrol could not independently verify the report.
According to a report by Zee News, the regulator will be set up by the Rail Development Authority (RDA). The RDA will define limits and place guidelines for private player running trains.
The Indian Railways has already provided two Tejas rakes to the Indian Railway Catering and Tourism Corporation (IRCTC) to operate them on the Delhi-Lucknow and Mumbai-Ahmedabad routes as a pilot project. IRCTC, a subsidiary of the Indian Railways, handles catering and online ticketing.The Delhi-Lucknow Tejas train will begin operations before October 15, Yadav added.Get access to India's fastest growing financial subscriptions service Moneycontrol Pro for as little as Rs 599 for first year. Use the code "GETPRO". Moneycontrol Pro offers you all the information you need for wealth creation including actionable investment ideas, independent research and insights & analysis For more information, check out the Moneycontrol website or mobile app.