Indian Railways Overhauls Freight Policy: Containers, Unified Licenses, and Skill Mandates
In a major policy overhaul aimed at modernising railway infrastructure and streamlining freight logistics, Railway Minister Ashwini Vaishnaw on Tuesday announced a series of reforms covering containerisation of bulk commodities, simplified licensing for operators, private wagon manufacturing, and mandatory skill certification for contract workers.
The reforms are designed to curb environmental pollution, reduce red tape, and boost efficiency in freight movement, which is a key revenue earner for Indian Railways.
Containerisation of Fly Ash and Fertilizers
To reduce air pollution, fly ash—of which India generates 340 million metric tonnes annually—will now be transported in closed, leak-proof containers instead of open wagons. Currently, only 13 million metric tonnes (about 4%) is moved by rail. The new containers can be unloaded cleanly using pneumatic pumps and stored directly at cement plants, eliminating dust emissions.
Similarly, fertilizers and foodgrains such as flour and pulses can now be transported in containers, addressing storage bottlenecks. Distributors can store individual containers at rake points and release them on demand, preventing contamination and reducing detention of rakes. The complex multi-slab freight structure for these commodities has been replaced by a transparent per-tonne-per-kilometre rate with flat and tapering variations.
Unified License for Container Train Operators
Previously, container train operators had to navigate four route categories, paying up to ₹50 crore for a Category-I registration and ₹10 crore for each additional category, with renewal fees of up to ₹25 crore after 20 years. The new policy introduces a single unified license valid on all routes nationwide, with a non-refundable registration fee of ₹25 crore. License extensions beyond the initial 20-year period will be granted free of charge.
Private Wagon Manufacturing
Wagon designs were earlier controlled by the Research Designs and Standards Organisation (RDSO), limiting innovation. Under the new policy, private industry can design and manufacture custom wagons, subject to a streamlined five-stage approval process: proposal submission, in-principle approval, detailed design and prototype manufacturing, static and dynamic testing, and final sanction by the Commission of Railway Safety and the Railway Board.
Oil Tank Wagons
Oil companies are now free to directly procure or lease specialised petroleum, oil, and lubricant (POL) tank wagons, removing dependency on railway-owned fleets.
Skill Certification for Contractors
Recognising that railway works require precision, the Ministry has mandated a skill certification framework for contractor-executed projects. Only certified artisans and supervisors will be allowed to handle specialised works. The programme will be rolled out in phases over 24 months across railway facilities.
Project Delivery Reforms
To accelerate project delivery and protect contractors from financial delays, contractors will deposit a 10% performance security at the start of the contract, with zero deductions from subsequent running bills. This is intended to ensure only serious contractors participate.
Additionally, Railways has launched 'Rail Bhoomi', a digital platform by CRIS that integrates applications like IRPSM, IPAS, and HRMS to manage land acquisition online, featuring live dashboards for tracking.
