Date:11/12/2008 URL: http://www.thehindubusinessline.com/2008/12/11/stories/2008121152020500.htm

Back Cox & Kings, IRCTC pact for Rs 50-cr luxury train project

Our Bureau

Mumbai, Dec. 10 The first Indian luxury train to have a pan-country presence will commence operations from third quarter of 2009.

The train is part of a joint venture agreement between Indian Railways Catering and Tourism Corporation (IRCTC) and Cox and Kings India (CKIL). The cost of the project will be around Rs 45-50 crore with both parties sharing the amount equally, spokesperson of CKIL told Business Line.

He also said that the joint venture will operate on profit sharing basis.

The train will be managed and operated under a joint venture company called Royale Indian Rail Tours Ltd, for which the agreement was signed on Wednesday by IRCTC and CKIL Managing Directors, Dr Nalin Singhal and Mr Peter Kerkar, respectively.

A statement said there will be two specially designed itineraries for the train. The first is the Princely India Tour, which is a seven-night itinerary that follows the Mumbai-Ahmedabad-Udaipur-Jodhpur-Jaisalmer-Jaipur-Delhi route. The second is the Classical India tour, which is also a seven-night itinerary through Delhi-Agra-Gwalior-Khajuraho-Varanasi and Patna.

India currently has three luxury trains: Palace on Wheels in Rajasthan, Deccan Queen in Maharashtra and Golden Chariot in Karnataka. However, all are region-specific and operated by the State governments.

Though the fares for this train journey are not yet finalised, sources say it will cost more than the ride on other luxury trains in India. It costs about Rs 14,700 ($300) per night for travel on existing Indian luxury trains; the new train could cost excess of Rs 24,500 ($500) per night.

IRCTC will operate the train, while CKIL will be responsible for marketing and all off-board services.