Government grants green signal for rolling out of 150 private train on 100 routes.
Train for Speed: A high-powered panel set up by Railway Minister Piyush Goyal has approved the rolling out of 150 private trains on 100 routes, including Mumbai-Delhi and Howrah-Delhi sectors.
According to the plan, private operators will be free to fix the fare, decide on halts and procure coaches and engines from any source as long as they comply with the Railways' standards. The private players will have to deploy all the trains within five years of award of contract, and the time taken by a train to complete a journey will be comparable with the fastest train operated by the Indian Railways on that route.
The recommendations put out for stakeholder consultations have proposed that Indian as well as global players, with experience in railway and tourism sectors be permitted, provided they have a minimum net worth of ?450cr ($62.62m). Other parameters such as a maximum-permissible 15-minute delay, beyond which passengers will have to be compensated, have also been proposed. ET Railways
Your Order Will Be Delayed: The Government recently held roadshows for the stake sale in Bharat Petroleum Corporation (BPCL) and Container Corporation (Concor). Despite the fact that these roadshows were conducted without an information memorandum (IM) and a data room, BPCL roadshows in the UK, the USA and the UAE attracted attention from global oil and gas majors like Shell, Chevron, Conoco Philps, Saudi Aramco, Rosneft and Exxon Mobil. Roadshows for Concor gathered attention from companies such as DP World and Adani Group.
However, almost all those interested indicated that the March 31st deadline for the stake sale was a hurdle. As a result, it is believed that the Government might consider pushing the stake sale to the next financial year. A deep dive into the matter here.
Opening Up: In an attempt to attract investments in coal mining, the Cabinet has approved the promulgation of Mineral Laws (Amendment) Ordinance 2020, which will allow any company, other than those present in steel and power to mine coal. The ordinance also does away with the captive end-use criteria. The move is likely to help create an efficient energy market, induce healthy competition and reduce coal imports, also putting an end to state-run Coal India Ltd’s (CIL’s) monopoly. Livemint
Hand-curated Business News from Top Publishers & Platforms, Richly Crafted to Fit into One Wholesome Email. Subscribe Now to receive a nuanced 360 Degree account of key events from the World of Business and Finance every day.