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Privatization of Railways - Economic Development 1. Of the Rs 50 lakh crores planned to be infused for development of Indian railways, only a part can be financed through the Budget 2020 and the rest to be met by Private players. 2.  So, GoI (Government of India) decided to open some of the busiest passenger train routes to private players. Why are Private players required? 1. During normal times, demand for train seats is more than the supply. This leads to huge wait-lists, overcrowding of trains and loosing of business to other modes like road and air. 2. The Indian Railways (IR) passenger segment is a loss-making business as only 57% of cost is met through sale of tickets and the rest is cross-subsidized through freight operations. 3. There is stiff competition between passenger trains and freight trains on the overcrowded IR network. 4. The opening up of Dedicated Freight Corridor will easen the IR network for passenger train segments and will be an opportunity to engage privat...