Railways rolls out single all-India license for operators to run container trains nationwide
New Delhi, Aug 5
The Indian Railways has simplified its licensing framework to allow container train operators to run container trains on all routes across the network under a single all-India license, with a uniform registration fee of Rs 25 crore, in a major reform to facilitate ease of doing business, with the earlier system of separate permissions and fees for different route categories is being done away with, an official statement issued on Wednesday said.
The modifications in the model concession agreement (MCA) have been approved to roll out the new licensing system, and the changes will be notified through a gazette notification, the statement said.
As part of the approved modifications, the existing route-wise categorisation of licences will be discontinued, and the operators will be granted a single all-India licence, enabling them to operate container trains across all routes on the Indian Railways network.
The earlier system of charging different registration fees for different route categories has been done away with. Every applicant will now deposit a non-refundable uniform registration fee of Rs 25 crore to operate on all routes on the Indian Railways network.
The approved amendments provide that the permission granted to a CTO may be extended for a further period of 20 years after expiry. This will be done by the competent authority to the same operator on application, subject to satisfactory performance. No extension fee will be charged for this extension or for any future extensions to the same operator.
Operators already holding Category I licenses may continue under their existing category until their concession period ends. On renewal or extension under the new license, no fee will be charged to them, the statement said.
Operators in Category II, III and IV may also continue in their existing categories until their concession period ends. For renewal or extension under the new license, they will pay Rs 15 crore. This is the difference between the new fee of Rs 25 crore and the Rs 10 crore already paid. This amount is non-refundable.
These operators may also choose to migrate early to the new license before completing their 20-year concession period. They will pay the same amount of Rs 15 crore for early migration.
The uniform registration fee and removal of extension fees are expected to reduce regulatory and compliance costs for operators while simplifying the approval process.
The simplified licensing is expected to encourage greater private participation and expansion of container train operations, leading to improved rail-based freight movement across the country. Greater use of rail for container transportation is expected to reduce logistics costs for industry, particularly MSMEs, by providing a more efficient and cost-effective freight transport option, the statement said.
Increased modal shift of container traffic from road to rail is also expected to ease congestion on highways, reduce fuel consumption and lower carbon emissions, contributing to more sustainable freight transportation.
The approved amendments are aimed at establishing a simplified and uniform licensing framework for CTOs across the Indian Railways network. The reforms are expected to facilitate a streamlined approval mechanism while providing a common regulatory framework for container train operations under the model concession agreement, the statement added.
— IANS
Reader Comments
Good move by Railways but I have a concern - existing Category I operators get free renewal while others have to pay Rs 15 crore more. Isn't that unfair to new players? Shouldn't there be a level playing field? Just saying...
This is great for Make in India and Atmanirbhar Bharat! Logistics costs in India are still high compared to global standards. If more freight moves by rail instead of road, it will help our exporters compete better. The environmental benefit is a bonus too. 🌿
Honestly, Rs 25 crore registration fee is quite steep for smaller operators. I understand the need for serious players, but this might actually discourage small businesses from entering the container train business. Just my two paise.
As someone who works in the logistics sector, this is a welcome change. The old system was so fragmented - different fees for different categories, paperwork for each route. This simplification will definitely reduce compliance burden. Kudos to the Railway Ministry! 👏
Interesting reform but I wish they had also addressed the actual operational issues like getting rakes on time and terminal access. Those are bigger problems than licensing. But anyway, one step at a time I guess.
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