No exclusivity clause dampens railway route privatisation: Report

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 No exclusivity clause dampens railway route privatisation: Report


Railway route privatisation is not as rosy it looks as there is no bar on competition on one hand and demand risks outweigh the benefits on other, even though the private operator is free to fix the tariffs, warns a report.

Currently, the railways cross-subsidises passengers by overcharging freight to minimise the losses generated in running passenger trains.


While demand risks also exist in other sectors like airports and ports, introduction of competition elevates the risk in the case of railways.


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