India will allow private companies to set passenger fares once they start operating train services, a move aimed at luring investors, as Prime Minister Narendra Modi opens up one of the oldest networks in Asia.

“Private players have been given the freedom to fix fares in their own way,” VK Yadav, chairman of India’s Railway Board, told reporters on Thursday. But, “air-conditioned buses and planes also operate on those routes, and they have to keep that in mind before setting fares.”

Moreover, The decision to partly open up the railway sector comes as Modi finds himself with limited fiscal room to support Asia’s third-largest economy, which is struggling with its first contraction in over four decades.

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