Existence of an independent & unbiased regulator with adequate regulatory powers is the foremost condition for the success of private trains. Else the private operators shall continue to bear the burden of inefficient working of IR!
Broad road map to involvement of private sector and bringing in much needed efficiency in Railway operation in India. It could be achieved step by step in a long time frame with adequate backing of suitable law amendments from time to time, so that existing IR as well as its employees could seamlessly transform itself and adjust to the new environment of competition & efficiency (as against the monopolistic situation at present)
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(1) Hive off non core operations like schools, colleges, hospitals, cleaning, catering etc to specialist organisations of Govt or pvt sector.
(2) Break IR into (a) train operating organisation (b) Rail Infrastructure organisation. (c) Train(Loco/coach/ wagons etc manufacturing organisations. Manufacturing organisations shall supply to national railways as well as export their products.
(3) Creation of Independent Rail regulator with adequate powers and representation form Govt/ pvt sector both, in order to regulate tariff, rules for haulage charges etc for train operating agencies. This regulator shall ensure level playing field to all train operators (including IR, private sector). Now stage is set for all many train operators (including IR) to operate trains over a single rail network ownedd by IR.
(4) Allow private sector to operate tourist trains, Freight trains and finally passenger trains. This will create an environment where a sea change can be expected in the efficiency through infusion of best practices & innovation in the area of train operation. There will be no monopoly in train operation. But Single rail infrastructure owner (i.e. IR) shall try to favour its rail operator sister concern to the extent possible.
(5) Allow private sector players to construct and own railway lines so that there are more than one rail network owners who will compete to give best possible train slots at most economical prices to many train operators. Rail travellers too shall have option of catching trains operated by many operators and operated on rail routes owned by different companies. This will be the ultimate time for IR where infusion of latest technology can be expected in the rail infrastructure.