Centre should junk its plans to privatise train services: PMK
Chennai
20-November-2021
PMK founder S.Ramadoss on Saturday said that the Centre should scrap its
attempt to privatise train services after failing to get private
investors for 13 trains running within Tamil Nadu and those originating
from the state.
At the all India level, Ramadoss said, the private sector did not show interest in bidding for more than 95 per cent of the trains that were tendered out.
He said privatising passenger train services will result in an increase in fare impacting the poor.
Currently, 47 per cent of the passenger fare is cross subsidised by freight traffic and if the trains are privatised then the passenger fares will increase at least by 70 per cent if the bidder has to earn a profit.
Ramadoss said the conditions like revenue sharing by the private party with Indian Railways and only 10 per cent of the trains being privatised have deterred the private sector from showing interest.
The PMK leader said the government instead of relaxing the two conditions should scrap its plans to privatise the train services.- IANS
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