Indian Railways Unveils Eight New Reforms to Modernise Freight Network

Vaishnaw said the latest reforms are designed to shift more freight from roads to railways, reducing logistics costs while delivering environmental benefits.

India's railway sector is set for another major transformation as the Ministry of Railways has introduced eight new structural reforms under its 'Reform Express' initiative, taking the total number of reforms implemented so far to 17. The latest measures focus on making freight transportation faster, cleaner and more efficient while encouraging greater private participation, improving infrastructure delivery and supporting indigenous innovation.

Announcing the reforms in New Delhi, Union Railway Minister Ashwini Vaishnaw said Indian Railways is steadily moving towards a future-ready transport system through a series of policy changes that strengthen logistics, improve project execution and make rail freight more competitive. He noted that the Ministry plans to introduce 52 reforms in 52 weeks, with several earlier initiatives already delivering positive results.

Freight reforms target cleaner transport and lower logistics costs

The biggest change is the introduction of a containerised transportation system for fly ash, replacing the traditional use of open wagons that often create dust pollution during loading and unloading. Specially designed ISO-standard containers will allow fly ash to move safely from thermal power plants to cement factories while reducing environmental pollution and improving handling efficiency. The Ministry believes the new system will increase rail movement of fly ash and reduce dependence on road transport.

The reforms also simplify the Container Train Operator (CTO) licensing system. Instead of multiple licence categories with different fees and operational restrictions, operators will now receive a single Pan-India licence that allows them to run container trains across the railway network. The new framework introduces a uniform registration fee and removes category-based limitations, making it easier for private companies to participate in rail freight while promoting greater containerisation and reducing logistics costs.

Fertiliser transportation has also been overhauled with a simplified per-tonne-per-kilometre freight charging system replacing the earlier structure of nearly 50 tariff slabs. The policy now permits fertilisers to be transported in containers, enabling phased unloading based on local demand, reducing wagon detention and protecting products from weather-related damage. Similar reforms have also been introduced for the movement of foodgrains, flour and pulses, where sealed containers are expected to improve food safety, storage flexibility and overall logistics efficiency.

Construction, skills and innovation receive fresh push

To improve the quality of railway infrastructure projects, Indian Railways has introduced a comprehensive policy to certify artisans working on specialised construction activities such as welding, fitting and masonry. Workers will undergo practical and oral assessments before receiving QR code-enabled skill certificates, allowing real-time verification of their qualifications and ensuring that only certified personnel undertake safety-sensitive work. The programme will initially cover major bridge and tunnel projects before expanding across the railway network over the next two years.

Construction reforms announced by the Ministry are intended to improve accountability and reduce project delays. Contractors will now provide 10% performance security at the start of projects instead of through deductions from running bills. New eligibility rules also prevent companies involved in excessive litigation from participating in railway tenders. The reforms include mandatory insurance coverage for construction risks and a structured land handover process supported by the Rail Bhoomi digital platform, which integrates land acquisition and project management systems to speed up infrastructure development.

Innovation in freight rolling stock has also received a boost through a new wagon design approval policy. Rather than relying mainly on designs developed by the Research Designs and Standards Organisation (RDSO), manufacturers and industry players will now be able to develop specialised wagons tailored for commodities such as steel, petroleum, chemicals, milk and plastics. Proposed designs will undergo detailed technical evaluation, prototype testing and field trials before being approved for commercial use.

Private participation expected to strengthen railway logistics

The Ministry has also removed restrictions that previously required Indian Railways to own all petroleum tank wagons. Oil companies will now be able to purchase or lease specialised tank wagons for use on the railway network, giving them greater flexibility in transporting petroleum products while reducing dependence on road transport and lowering the risks associated with fuel movement.

Vaishnaw said the latest reforms are designed to shift more freight from roads to railways, reducing logistics costs while delivering environmental benefits. Rail transport produces significantly lower carbon emissions than road transport, making it an important component of India's sustainable transport strategy. By expanding containerisation, encouraging private investment and simplifying operational procedures, the Ministry expects Indian Railways to diversify its freight business and strengthen its role in supporting economic growth across multiple industries.