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New Delhi, July 2 About a dozen tourist routes could be identified and a single licence to provide passenger train services on any or all of these routes, the Economic Survey 2008-09 has said while listing the steps to improve the investment environment.

Private companies should be allowed to provide passenger train services to and from all tourist destinations, it has said.

At present, the Railways has a policy for luxury train operations, which it revised in 2008.

The revised policy made it more expensive for State tourism departments, the IRCTC and other hospitality players eyeing the sector.

The revised policy for luxury trains ensured assured recovery of Indian Railways’ costs, while increasing the risk for the train operator.

Earlier, the Railways were able to recover costs only if the occupancy levels of the luxury trains crossed 50-55 per cent.

Based on the older policy, while the Railways made money in the Palace on Wheels (Railways’ joint venture with Rajasthan State Tourism arm), it had been losing about Rs 6-7 crore a year in the Deccan Odyssey (joint venture with Maharashtra’s tourism arm).

More Stories on : Economic Survey | Railways

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