Odisha soon to join list of states having own 'Palace on Wheels' train

Rail ministry had invited proposals from 15 states to own tourism trains in Feb; Odisha was the only one to respond; ownership model likely to be finalised in August

Indian Railways is all set to cash in on the tourism potential in Odisha's pristine beaches, cultural and heritage sites and charming wildlife. The eastern state may soon own a luxury train — similar to the iconic Palace on Wheels — showcasing the beauty of places like Puri, Bhubaneshwar, Cuttack and Konark to the outside world.   

With this, Odisha Tourism Development Corporation (OTDC) is set to enter the elite league of states like Rajasthan, Maharashtra and Karnataka that manage luxury trains targeting overseas consumers. The ministry of railways had invited proposals from around 15 states to own tourism trains in the month of February. However, only Odisha had responded to this ambitious plan.

The plan was finalised after a meeting between the railway officials and Odisha Chief Secretary A P Padhi in Bhubaneswar in July. A team of OTDC may visit Delhi in August to finalise the model of ownership. At present, Indian railways operate five luxury trains namely Palace on Wheels, Heritage Palace on Wheels (both by Rajasthan), Deccan Odyssey (Maharashtra), Golden Chariot (Karnataka) and Maharajas’ Express (Indian Railway Catering and Tourism Corporation).   

Heritage Palace on Wheels was the last such luxury train that Railways had launched, in December 2017. Interestingly, all the other trains were running in losses, as per the latest available figures. In 2016-17, Deccan Odyssey was running in a loss of Rs 131.7 million, Golden Chariot about Rs 40.5 million and Maharajas’ Express about Rs 28.9 million, while the figures of Palace on Wheels for the concerned year was not available.  

Promotion of the luxury trains is normally the responsibility of the respective train-operating tourism corporations. While Palace on Wheels and Golden Chariot are run on revenue-sharing basis, Maharajas’ Express and Deccan Odyssey are operated on haulage model, under which Railways charge for the locomotives or the operation of the train. 

In order to attract more consumers and make it more economical for states, Railways had brought down the haulage charges of luxury trains by at least 50 per cent, to around Rs 4 million for a trip of seven days from Rs 7 million. In addition to this, it has waived off penal interest on existing outstandings of Rs 379.6 million for Rajasthan, and Rs 31.7 million for Karnataka.   

Railways is set to provide coaches to states at a reasonable rate, while interior designing, hospitality, routes and destinations will be decided by the concerned state government. The name of Odisha's new train is yet to be finalised. Interestingly, more than 90 per cent of the passengers on these trains is foreigners.