Railways approves single Rs 25 crore licence for container operators

The Story in Brief

The Railway Ministry has approved a single all-India licence for container train operators, replacing route-wise categories with a one-time fee of Rs 25 crore. The reform will let operators run across the Indian Railways network, similar to the National Permit system for trucks.

There are currently 22 container train operators. Existing firms can retain their licences until their concessions end, or migrate early by paying Rs 15 crore. The current 20-year concessions may be followed by a fresh 20-year licence without a renewal fee. The ministry expects simpler approvals and lower compliance costs to attract private operators and shift more freight from roads to rail.

The Indian Opinion

Claims that one licence will instantly transform freight movement are premature, while fears of a private-sector free-for-all overlook the fee and concession rules. The real test is whether operators add reliable services, not merely obtain wider access. Railways should publish annual data on container volumes, transit times, network use and road traffic displacement after the Gazette notification. Those figures will show whether the reform cuts costs for shippers and congestion for the public.

Source: timesofindia.indiatimes.com

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