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The Ministry of Railways has decided to cancel the leases of 24 privately operated trains due to alleged violations of the terms and conditions of the contracts.
Senior Assistant Secretary of the ministry Md Nazmul Huda sent a letter to the Director General of Bangladesh Railway on November 3 to inform the leaseholders of this decision.
The letter stated that due to various complexities in operating commercial activities of trains under private management, a decision was made in April 2019 to discontinue awarding any new train operations to private management.
The letter also highlighted that failure to comply with conditions of contracts—such as carrying passengers on train roofs and charging excessive fares—could lead to contract cancellation as provided in the agreement.
The leases for 24 privately operated trains would be cancelled on December 31, the letter from the ministry said.
It also directed that steps be taken to lease these trains through open tender immediately.
Seeking anonymity, an official from Bangladesh Railway revealed that previously all privately operated train leases were awarded based on political considerations.
Contractors close to ministers held these leases during the Awami regime, discouraging others from raising any objections. As a result, irregularities in train operations had effectively become the norm, he added.