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IRCTC, Texmaco Rail shares rally after private entities invited to run passenger trains

While IRCTC stock rose up to 7.29% to Rs 1,462, Texmaco Rail gained 17% to Rs 30.70 on BSE

twitter-logoBusinessToday.In | July 2, 2020 | Updated 10:25 IST
Rail stocks rally after govt seeks proposals from private entities to run passenger trains
The public sector behemoth invited Request for Qualifications (RFQ) for operation of passenger train services on over 100 routes with 150 modern trains

Railways stocks gained in early trade today after the Ministry of Railways invited proposals from private entities to run passenger trains. Titagarh Wagons share price rose 4.95% to Rs 36.05 against previous close of Rs 34.35 on BSE.

Texmaco Rail stock too gained 17% to Rs 30.70 against previous close of  Rs 26.05. Similarly, share price of Cimmco was locked in upper circuit of 10% at Rs 18.70 on BSE. IRCTC stock rose up to 7.29% to Rs 1,462 against previous close of Rs 1363.35 on BSE.

On Wednesday, Indian Railways initiated the process of allowing private players to operate certain trains on its network.

The public sector behemoth invited Request for Qualifications (RFQ) for operation of passenger train services on over 100 routes with 150 modern trains. This is the first initiative of private investment for running passenger trains over the Indian Railways network and will attract investments of about ?30,000 crore, the Ministry of Railways said.

Share Market LIVE: Sensex up 350 points, Nifty at 10,530; HDFC, ITC, Axis Bank top gainers

"Ministry of Railways has invited RFQ for private participation for operation of passenger train services over 109 Origin Destination (OD) pairs of routes through introduction of 151 modern Trains. Each Train shall have a minimum of 16 coaches," the national transporter said in a statement.

These trains will be operated by drivers and guards of the Indian Railways.

"The operation of the trains by the private entity shall conform to the key performance indicators like punctuality, reliability, upkeep of trains, etc. Operation and maintenance of the passenger trains would be governed by standards & specifications and requirements specified by Indian Railways," it said.

Share Market LIVE: Sensex up 350 points, Nifty at 10,530; HDFC, ITC, Axis Bank top gainers

By Aseem Thapliyal

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