IR announces 8 structural reforms to boost freight income, reduce logistics cost –Part -1

Union Railway Minister Ashwini Vaishnaw on Tuesday announced eight structural reforms to modernise Indian Railways (IR). With this, the total number of reforms implemented under the ‘Reform Express’ initiative has reached 17. The new reforms will bring significant changes in freight transportation, logistics, construction practices, project execution, wagon design, skilling and ease of doing business.

Addressing the media in Rail Bhawan, New Delhi, the Minister explained the reforms aimed at increasing efficiency in IR in detail as follows:

Reform 10: Fly Ash Transportation

To address the issue of dust pollution during loading, transportation and unloading of fly ash besides the risk of pollution when fly ash is stored in ash ponds in thermal power plants, IR has introduced a new containerised transportation system for fly ash. Under the new policy, specially designed ISO-standard containers will be used for transportation. These containers can be loaded directly from the power plant through top-loading arrangements and unloaded using side-discharge or pneumatic systems without generating dust pollution.

The closed-container system will enable pollution-free transportation, facilitate safe storage within cement plants until the material is required, and significantly improve logistics efficiency. The containers can be handled through reach stackers, allowing seamless end-to-end movement from power plants to cement plants. The reform is expected to increase rail movement of fly ash.

Reform 11: Reforms in the Container Sector

To promote container traffic, IR has undertaken a major structural reform in the container train operator licensing framework.

Under the existing system, Container Train Operator (CTO) licences were issued under four categories (Category I–IV), with a registration fee of ₹50 crore for Category-I and ₹10 crore for each of the other categories, along with route-specific restrictions and different registration requirements. This has now been replaced by a single unified Pan-India Container Train Operator licence.

Under the new framework, operators will be able to run container trains across the entire IR network without category-based restrictions. The registration system has also been simplified through a uniform non-refundable registration fee of ₹25 crore applicable across all routes.

Permissions will continue to remain valid for twenty years and can thereafter be extended without payment of any renewal or extension fee, subject to successful operations. The simplified licensing framework is expected to increase containerisation, attract more non-bulk cargo to IR.

Reform 12: Fertilizer Transportation

IR’s existing freight charging system comprises nearly fifty different slabs, making operations complex. Under the new reform, freight charges have been simplified to a per tonne per kilometre basis with a rationalised tariff structure comprising three variations.

The reform also permits transportation of fertilizers through containers. Unlike the earlier system, where an entire rake remained detained until complete unloading at a single destination, individual containers can now be unloaded and stored at rake points according to demand. This will enable phased distribution based on the requirements and lifting capacity of distributors. Containerised movement will protect fertilizers from rain and weather-related damage.

Reform 13: Policy for Skilling Artisans in Railway Projects and Works

To ensure deployment of competent manpower in railway projects and works, IR will introduce a comprehensive policy for skilling artisans. The policy establishes a structured framework for identification, assessment and certification of workers engaged in trades such as welding, fitting, masonry and other specialised construction activities.

Under the new framework, workers will be assessed on project-specific skill requirements through designated testing authorities. Successful candidates will receive QR code-enabled skill certificates linked to a live verification database. Policy implementation will commence with major and complex railway projects, including bridges and tunnels, and will be expanded to zones /production units over the next two years.

The initiative will ensure that only certified artisans and supervisors are deployed in specialised railway works, standardise skill assessment across IR, facilitate real-time verification of credentials, improve workmanship, strengthen quality assurance and promote skill upgradation across the country’s infrastructure sector.

End of Part -1

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