The railway has already floated global tenders for the Rs 2500 cr project involving procurement-cum-maintenance contract for 15 Electrical Multiple Unit (EMU) Train Sets.
A Train Set comprises coaches or rail cars where each coach is powered by a dedicated propulsion system, doing away with the need to have a locomotive haul the train.
According to the conditions in the bidding document, the selected bidder will manufacture and supply 15 EMU Train Sets comprising about 315 rail cars over a period of about 4-5 years and undertake maintenance thereafter for seven years.
Till now, maintenance has been the preserve of the Indian Railway, while cleaning activities have been outsourced.
"It is for the first time that Indian Railway is allowing a private player to do the maintenance also which is paradigm shift," sources close to the development said.
However, operational responsibility for the Train Sets will be with the Railway.
The move has not gone down well with the All India Railwaymen's Federation. Its General Secretary Shiv Gopal Mishra said, "It is a clear cut privatisation move as maintenance job will be managed by the private player, thereby taking away a key area from the Railways."
He said since the train's life is about 30 years and outsourcing will be only for seven years, the railways will maintain those after that.
According to him, the global tender for the big-ticket project is in accordance with Prime Minister Narendra Modi's ambitious 'Make in India' initiative.
While the successful bidder will import two Train Sets, the rest would be manufactured in the country, according to the bidding condition.
The project was announced by Railway Minister Suresh Prabhu in the Rail Budget for the current year.
You’ve reached your limit of {{free_limit}} free articles this month.
Subscribe now for unlimited access.
Already subscribed? Log in
Subscribe to read the full story →
Smart Quarterly
₹900
3 Months
₹300/Month
Smart Essential
₹2,700
1 Year
₹225/Month
Super Saver
₹3,900
2 Years
₹162/Month
Renews automatically, cancel anytime
Here’s what’s included in our digital subscription plans
Exclusive premium stories online
Over 30 premium stories daily, handpicked by our editors


Complimentary Access to The New York Times
News, Games, Cooking, Audio, Wirecutter & The Athletic
Business Standard Epaper
Digital replica of our daily newspaper — with options to read, save, and share


Curated Newsletters
Insights on markets, finance, politics, tech, and more delivered to your inbox
Market Analysis & Investment Insights
In-depth market analysis & insights with access to The Smart Investor


Archives
Repository of articles and publications dating back to 1997
Ad-free Reading
Uninterrupted reading experience with no advertisements


Seamless Access Across All Devices
Access Business Standard across devices — mobile, tablet, or PC, via web or app
