Explained:How does India’s Railways’ corporate train model work?

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News:Recently, Kashi Mahakal Express has been inaugurated as the country’s third ‘corporate’ train after the two Tejas Express trains between Delhi-Lucknow and Mumbai-Ahmedabad.

Facts:

About the Corporate Train Model:

  • In this model, the physical infrastructure of the train such as locomotives, coaches, loco pilots among others will remain in the Indian Railways’ hands.
  • However, the services provided including ticketing and refunds, parcels, catering and housekeeping will be outsourced to Indian Railway Catering and Tourism Corporation(IRCTC).
  • This will allow Indian Railways to be free from encumbrances and gets to earn from IRCTC a pre-decided amount being the owner of the network.