The recent announcement regarding private train operations has received mixed reactions. Private train operations can have a significant impact on Indian Railways, though the reasons may not be obvious. Scepticism regarding the success of the initiative is natural, given Indian Railways’ patchy track record with the private sector – in private container train operations and on the four models of public-private partnership (PPP) in building railway lines.
Allowing the private sector to operate trains that will service the highest-end traveller segment will add some rolling stock capacity but would not have a direct impact on the key challenges faced