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'Palace on Wheels' to run on O&M model from 2022-23

According to the officials, the Rajasthan Tourism Development Corporation (RTDC) will continue to own the royal luxury train, Palace of Wheels, which will operate and maintain it under the “Bharat Gaurav Train Policy” of the Indian Railways starting in 2022–2023. The train, which was halted in March 2020 because of COVID-19, is probably going to […]

Palace on wheels
Palace on wheels

According to the officials, the Rajasthan Tourism Development Corporation (RTDC) will continue to own the royal luxury train, Palace of Wheels, which will operate and maintain it under the “Bharat Gaurav Train Policy” of the Indian Railways starting in 2022–2023.

The train, which was halted in March 2020 because of COVID-19, is probably going to be back on track starting in October of this year.

Since 1982, the train has been operating and has never experienced a loss. The cabinet has given its approval for the decision to run the train using the operation and maintenance model.

According to a top official with knowledge of the situation, the renowned Palace on Wheels will shortly begin operations. From 2022–2023. He said, “Now the train will be operated on an operation and maintenance model under the ‘Bharat Gaurav Train Policy’ of Indian Railways from the year 2022–23.”

He continued by saying that RTDC would get a predictable annual income and that private investment would allow for the expansion of tourism amenities.

“The railway has given possession of the train to the RTDC and the refurbishing work has been started,” the official said.

The tender for the operation and maintenance of the train will be released as soon as the proceedings of the cabinet meeting are received, he continued, and a new agreement will be signed in the coming weeks with the Indian Railways.

A portion of the RTDC’s debt to the Indian Railways has been paid in the amount of 5 crore, and the remaining sum will be made available shortly. The balance due from RTDC for Palace on Wheel, which consists of principle and interest, is Rs. 28 crore. According to the spokesman, the railway has already cut 10 crore because one of the trains was withdrawn.

Due to COVID-19, the train was out of service for more than two years. When this train was in service, the railways and RTDC received income in the proportion of 56:44. However, the Bharat Gaurav Train Policy has modified the distribution model and requires RTDC to cover the haulage costs.

The train is often at least 60% to 70% booked. The train made 14.65 crore in revenue in 2019–20. It was 16.17 crore in 2018-19, 14.05 crore in 2017-18, and 13.96 crore in 2016-17.

According to the official, the train made an average profit of 3 to 5 crore per year, which we anticipate will rise to 7 to 8 crore per year if we outsource operation and maintenance to a private company after conducting a competitive contract.

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Indian railways