Rail stocks in demand; jump up to 13 pc

Stocks related to railways sector jumped up to 13 per cent on Thursday after the railways formally kickstarted its plans to allow private entities to operate passenger trains on its network. This is the first initiative for private investment for running passenger trains on the Indian Railways network.


PTI | New Delhi | Updated: 02-07-2020 18:52 IST | Created: 02-07-2020 18:52 IST
Rail stocks in demand; jump up to 13 pc
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Stocks related to railways sector jumped up to 13 per cent on Thursday after the railways formally kickstarted its plans to allow private entities to operate passenger trains on its network. It invited request for qualifications (RFQ) for participation on 109 pairs of routes through 151 modern trains.

Shares of Texmaco Rail & Engineering zoomed 13.24 per cent, Cimmco jumped 10 per cent, Rail Vikas Nigam 7.14 per cent, Titagarh Wagons 4.95 per cent and IRCTC 3.56 per cent, on the BSE. This is the first initiative for private investment for running passenger trains on the Indian Railways network. It began last year with the Indian Railway Catering and Tourism Corporation (IRCTC) introducing the Lucknow-Delhi Tejas Express.

Currently, the IRCTC operates three trains -- the Kashi Mahakal Express on the Varanasi-Indore route, the Lucknow-New Delhi Tejas and the Ahmedabad-Mumbai Tejas. "The objective of this initiative is to introduce modern technology rolling stock with reduced maintenance, reduced transit time, boost job creation, provide enhanced safety, provide world-class travel experience to passengers," the Railways said. The 109 origin-destination routes have been formed into 12 clusters across the Indian Railway network. Each train shall have a minimum of 16 coaches, it said.

The Railways also said majority of these modern trains are to be manufactured in India as 'Make in India' and the private entity shall be responsible for financing, procuring, operating and maintaining the trains..

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)

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