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Luxury Club SDABAC

LUXURY TRAIN ‘PALACE ON WHEELS’ TO OPERATE ON O&M MODEL

The royal luxury train, Palace of Wheels is all set to run on the Operation and maintenance (O&M) model under the ‘Bharat Gaurav Train Policy’ of the Indian Railways from the year 2022-23 while the ownership of the train will remain with the Rajasthan Tourism Development Corporation ( RTDC).


The train, which came to a halt due to Covid-19 in March 2020, is likely to return on track from October, this year. The train has been running since 1982 and has never been in losses. RTDC will get a fixed revenue every year and the tourists will get more facilities with private participation. A new agreement will be inked with the Indian railways, and the tender of the train will be released.



RTDC has handed over around ₹5 crore, part payment of the dues with the Indian Railways, and rest will be released soon. RTDC has to clear an outstanding of ₹28 crore of Palace on Wheel, which includes principal and interest amount. The railway has already reduced ₹10 crore as one of the trains was withdrawn. The Railways and RTDC used to get revenue in the ratio of 56:44 in the operation of this train. But the distribution pattern is changed and the haulage charges will have to be paid by RTDC as per the Bharat Gaurav Train Policy.



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