Railway stocks gain as Ministry invites proposals for private train operations

New Delhi : The shares of Railways gained 4-11 per cent in early trades on July 2 after Ministry of Railways invited proposals from the private companies to operate passenger trains.

The Railway Ministry has finally allowed proposals from private companies to operate passenger trains in India, a move that will shake up the creaking infrastructure and foster growth.

The ministry on July 1 invited qualification proposals from private entities to run trains over 109 pairs of routes by introducing 151 modern trains.

The project would entail private sector investment of about Rs 30,000 crore, the ministry said in a statement.

Across the rail networks, 109 original destination pairs of routes have been formed into 12 clusters. Each train will have a minimum of 16 coaches.

At 09:22 hrs Titagarh Wagons was quoting at Rs 36.05, up Rs 1.70, or 4.95 percent and Texmaco Rail was quoting at Rs 28.95, up Rs 2.90, or 11.13 percent.

Cimmco was quoting at Rs 18.70, up Rs 1.70, or 10.00 percent and IRCTC was quoting at Rs 1,417.65, up Rs 54.30, or 3.98 percent on the BSE.