Indian Railways has approved a major overhaul of its container train licensing framework, allowing private Container Train Operators (CTOs) to operate across the country’s entire rail network under a single All India licence.
The reform replaces the existing system of route-based licence categories and separate fees, giving operators access to all routes across the Indian Railways network under one permission.
The changes have been approved through modifications to the Model Concession Agreement (MCA), which governs permissions for container train operations. They will take effect following publication through a Gazette Notification.
Single licence replaces route-based system
Under the revised framework, the existing route-wise categorisation of container train licences will be discontinued.
Subject to approval by the Ministry of Railways, CTOs will instead receive a single All India licence enabling them to operate container trains across all routes on the national rail network.
The government said the change is intended to simplify the regulatory framework and improve the ease of doing business for private rail freight operators.
The wider network access could also give operators greater flexibility when developing services connecting ports, inland terminals and industrial centres across India.
Uniform ₹25 crore registration fee
Indian Railways will introduce a uniform, non-refundable registration fee of ₹25 crore (₹250 million), equivalent to approximately €2.3 million, for the new nationwide licence.
This replaces the previous system under which registration fees varied depending on the route category for which an operator sought permission.
The revised framework also removes extension fees.
A CTO’s permission may be extended for another 20 years after the original concession expires, subject to satisfactory performance and approval by the competent authority. No extension fee will be charged for that extension or any future extensions granted to the same operator.
Existing operators given transition options
Existing Category I operators will be permitted to continue operating under their current licences until their concession periods expire.
When they subsequently renew or extend their permissions under the new All India licence, they will not be required to pay an additional fee.
Operators holding Category II, III and IV licences can also remain under their existing arrangements until their concessions expire.
However, when moving to the new national licence through renewal or extension, these operators will pay ₹15 crore (₹150 million), equivalent to approximately €1.4 million. Indian Railways said this represents the difference between the new ₹25 crore registration fee and the ₹10 crore (₹100 million), or approximately €910,000, previously paid.
Category II, III and IV operators will also have the option to migrate to the All India licence before completing their existing 20-year concession periods by paying the same non-refundable ₹15 crore amount.
India targets greater shift from road to rail
Indian Railways expects the simplified licensing regime to encourage greater private participation and support the expansion of container train operations across the country.
Greater use of rail for container transport could provide industries with additional freight options while reducing transportation and regulatory costs, with the government highlighting potential benefits particularly for micro, small and medium-sized enterprises (MSMEs).
The reform is also intended to encourage a greater modal shift of container cargo from road to rail.
According to the Ministry of Railways, increasing rail’s share of container transportation could help ease highway congestion, reduce fuel consumption and lower carbon emissions while supporting more efficient freight movement.
The approved amendments are designed to establish a common regulatory framework for private container train operations across Indian Railways, removing route-specific licensing restrictions that have previously governed access to the network.
