The railways ministry has fast-tracked the Mumbai-Ahmedabad bullet train corridor by setting up a separate company, on the lines of the Delhi Metro Railway Corporation (DMRC), which will build and operate the NDA government’s ambitious project.
The company will be registered in January. The process has already being initiated by Indian Railway Finance Corporation (IRFC), reflecting the state-run transporter’s intent to accelerate the actual work on the Modi government’s dream project expected to put the country’s railway sector in the big league.
To begin with, the company would be registered in the name of Indian Railways. At a later stage, the company would be made into a joint venture (JV) with equity participation of the Maharashtra and Gujarat governments. In the JV, the equity contribution of Railways is likely to be 50% while Maharashtra and Gujarat would have a stake of 25% each.
The public sector company is expected to build and also carry out train operations. It would provide access to private operators after five years of operation of the Mumbai-Ahmedabad corridor with a suitable revenue sharing arrangement.
The company, which will own the assets created on the corridor, would have effective independence in decision-making and would be run as a professional entity.
A search and selection panel headed by the cabinet secretary and comprising secretary department of economic affairs and secretary, department of personnel and training would choose the managing director and other functional directors.
The corridor is likely to have 12 stations between Mumbai and Sabarmati/Ahmedabad and the tariff would be 1.5 times of first AC fare.