Railways plans to increase share of freight traffic from current percentage of 28% to 44% by 2051

The National Rail Plan envisages that the share of freight traffic by rail should go up from the current share of 28% to 44% by 2051. DFC operation will bring-in efficiency in freight operation and enable rail tariff being more competitive because of its operational/design features.

More Details:

  • The construction of Dedicated Freight Corridors (DFCs) on the important high density route is an important policy measure by Indian Railways to arrest the trend of falling market share of railways in the country and also will shift the advantage in favour of rail transport:
    • Higher throughput per wagon and per train: Run Heavy Haul trains.
    • Lower Energy Consumption: Reduce Operation and Maintenances Costs
    • Reduction in Transit time: Reduce logistic cost of transportation and better utilization of Rolling stock
  • Moreover Indian Railway has taken number of multi-pronged strategy to increase its modal share in freight segment which includes tariff rationalisation and Tariff/freight incentive schemes which includes; diversification of freight basket, Liberalised Automatic Freight Rebate Scheme in Traditional Empty Flow Directions, Rationalisation of Station to station rates policy, Rationalization of Merry-Go- Round, Concession in short Lead Traffic, Discount in freight to fly ash traffic booked in Open/flat Stock & covered wagons, Round trip charging for ultra short lead (upto 50 Kms) container traffic, Round Trip Traffic (RTT) Policy, Automobile Freight Train Operator Scheme (AFTO),  Introduction of Cube Container for two wheeler traffic.
  • A New ‘Gati Shakti Multi- Modal Cargo Terminal (GCT)’ policy has also been launched to facilitate development of cargo terminals on non Railway land, as well as on Railway land (partially or fully) etc.
  • In addition, various other schemes have also been introduced to attract private investment in General Purpose Wagons, Special  Purpose / High Capacity wagons  and  Automobile carrier wagons. Presently around 232 rakes have been inducted under various investment schemes.
  • Strategic disinvestment of Container Corporation of India Limited (CONCOR) is being carried out by the Department of investment and Public Asset Management (DIPAM). DIPAM has informed that the Cabinet Committee of Economic Affairs (CCEA) in its meeting held on  20.11.2019 has given in principle approval for Strategic disinvestment of Government of India’s (GOI) holding of 30% out of its present holding of 54.8% in CONCOR along with transfer of management control to strategic buyer.
  • The Master Circular on “Policy for Management of Railway Land” issued on 04.10.2022 permits setting up of Renewable power plants for exclusive use of Railways for a lease period of upto 35 years @ ₹1/- per square meter (sqm) per annum.
  • Further, it permits Hospitals selected through a transparent policy and Kendriya Vidyalaya Sangathan for a lease period of upto 60 years @₹1/- per square meter (sqm) per annum. So far, Indian Railway has set up about 6.7 Mega watt (MW) of Solar Power Plant on its vacant land. Details are as follows:
    • 3MW solar plant at Modern Coach Factory (MCF), Raebareli (Uttar Pradesh) has been commissioned.
    • 2 MW solar plant at Diwana (Haryana) has been Commissioned.
    • 1.7 MW solar plant at Bina (Madhya Pradesh) has been commissioned.
  • Further, Railway vacant land has also been used for setting up of a plant of 50 MW capacity at Bhilai.
  • This information was given by the Minister of Railways, Communications and Electronic & Information Technology, Shri Ashwini Vaishnaw in a written reply to a question in Lok Sabha.

Source: PIB- Press Release | Image Credit (representational): SCR