A key focus of the reforms is the shift from open wagons to closed containers for transporting major bulk commodities. Currently, only about 4% of the 340 million metric tonnes of fly ash produced annually in India is transported by rail. Under the new policy, fly ash will be moved in closed, leak-proof containers that can be unloaded using pneumatic pumps, allowing clean storage at cement factories and reducing air pollution.
Indian Railways currently handles nearly 85% of the country’s fertilizer movement. The updated guidelines now permit fertilizers and foodgrains—including flour and pulses—to be transported in containers, addressing storage bottlenecks and reducing contamination risks. This system enables distributors to store containers at rake points and distribute products on demand.
The reforms also simplify freight pricing by abolishing complex, multi-slab structures for fertilizers and foodgrains. These will be replaced by a transparent, per-tonne-per-kilometre rate structure featuring flat and tapering variations.
Regulatory processes for container train operators and private manufacturers have been streamlined. The previous system required operators to obtain multiple route-specific registrations costing up to ₹50 crore each for Category-I licenses, along with renewal fees. The new unified license allows container trains to run nationwide for a single non-refundable registration fee of ₹25 crore, with license extensions beyond 20 years granted free of charge.
Private industry has been empowered to design and manufacture specialized wagons, breaking the monopoly previously held by the Research Designs and Standards Organisation (RDSO). The approval process has been condensed into five stages: proposal submission to RDSO, in-principle approval, detailed design and prototype manufacturing, testing, and final sanction by the Commission of Railway Safety and the Railway Board.
Oil companies are now authorized to directly procure or lease specialized petroleum, oil, and lubricant (POL) tank wagons, eliminating reliance on railway-owned fleets.
Addressing safety and quality in construction and maintenance, the Ministry has introduced a mandatory skill certification framework for contractor-executed railway works. Only certified artisans and supervisors will be allowed to handle specialized railway tasks as the program rolls out over 24 months.
To fast-track project delivery and protect contractors from payment delays, a new financial mechanism requires contractors to submit a 10% performance security upfront. Importantly, no deductions will be made from running bills, incentivizing only committed contractors to participate.
The Railway Ministry also launched Rail Bhoomi, a digital platform developed by the Centre for Railway Information Systems (CRIS). Rail Bhoomi integrates applications like IRPSM, IPAS, and HRMS to streamline land acquisition processes with live dashboards tracking statutory timelines and compensation status.
These reforms mark a significant step toward a more efficient, transparent, and environmentally sustainable railway system under Minister Vaishnaw’s leadership.
