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Nation / Tue, 14 Jul 2026 The Hindu

Railway Minister announces reforms to cut red tape, boost freight, standardise skilling

These can be unloaded cleanly using air-pressure pneumatic pumps and stored directly inside cement factory premises without causing air pollution,” Mr. Vaishnaw said. “Going forward, only certified artisans and supervisors will be permitted to handle specialised railway works. The skill certification programme will be rolled out in phases over 24 months across railway facilities,” Mr. Vaishnaw said. Accelerating project deliveryTo accelerate project delivery and safeguard contractors from financial delays, key construction reforms have been implemented, Mr. Vaishnaw said. This will ensure that only those contractors who are serious about railway work will enter the field,” Mr. Vaishnaw said.

In a bid to modernise railway infrastructure, streamline freight logistics, and transition toward eco-friendly operations, Railway Minister Ashwini Vaishnaw announced a slew of policy reforms on Tuesday (July 14, 2026).

To curb environmental pollution and simplify logistics, Indian Railways is shifting the movement of major bulk commodities from open wagons to closed containers.

Of the 340 million metric tonnes (MT) of fly ash generated annually in India, only 13 million MT (around 4%) is currently transported by rail, historically in open wagons. “Under the new reform, fly ash will be transported in closed, leak-proof containers. These can be unloaded cleanly using air-pressure pneumatic pumps and stored directly inside cement factory premises without causing air pollution,” Mr. Vaishnaw said.

Fertilizer movement

The railway currently accounts for about 85% of the country’s fertilizer movement. Under the revised policy, fertilizers and foodgrains, including flour and pulses, can now be transported in containers to eliminate storage bottlenecks. “This allows distributors to store individual containers at rake points and distribute them on demand, preventing product contamination and rake detentions,” said Mr. Vaishnaw.

The complex, multi-slab freight structures for fertilizers and foodgrains have been abolished. They are replaced by a transparent, per-tonne-per-kilometre rate structure with flat and tapering variations, the Minister added.

The reforms also ease regulatory requirements for container train operators and private manufacturers.

Previously, container train operators had to navigate four distinct route categories, paying up to ₹50 crore for a Category-I registration, and ₹10 crore for each individual category, renewal fees of up to ₹25 crore after 20 years for Category I and ₹5 crore for other categories.

The railway has now introduced a single unified license to run container trains on all routes nationwide with a non-refundable registration fee of ₹25 crore. License extensions beyond the initial 20-year period will now be granted free of charge.

Historically, wagon designs were strictly controlled by the Research Designs and Standards Organisation (RDSO), limiting specialised designs, Mr. Vaishnaw said, adding, “Under the new policy, the private industry is empowered to design and manufacture custom wagons.”

Five-stage approval

The streamlined five-stage approval process includes conceptualisation and submission of a proposal to the RDSO, in-principle approval by RDSO, detailed design and parallel manufacturing of a prototype, static and dynamic rake testing and final sanction by the Commission of Railway Safety and the Railway Board.

“Oil companies are now free to directly procure or lease specialised petroleum, oil, and lubricant (POL) tank wagons, removing the dependency on railway-owned fleets,” the Minister said.

Acknowledging that railway operations are safety-sensitive and require precision engineering, the Ministry has launched a mandatory skill certification framework for contractor-executed railway works.

“Going forward, only certified artisans and supervisors will be permitted to handle specialised railway works. The skill certification programme will be rolled out in phases over 24 months across railway facilities,” Mr. Vaishnaw said.

Accelerating project delivery

To accelerate project delivery and safeguard contractors from financial delays, key construction reforms have been implemented, Mr. Vaishnaw said.

“Contractors will deposit a 10% performance security at the start of the contract, with zero deductions made from subsequent running bills. This will ensure that only those contractors who are serious about railway work will enter the field,” Mr. Vaishnaw said.

The railway has introduced Rail Bhoomi, a digital platform developed by CRIS. It integrates key railway applications such as IRPSM, IPAS, and HRMS to manage the land acquisition workflow online, featuring live dashboards to track statutory timelines and compensation status, Mr. Vaishnaw stated.

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