Ashwini Vaishnaw Announces Policy Allowing Industries To Design Custom Wagons
Railway reforms allow industries to develop wagons meeting their specific needs.
Union Railway Minister Ashwini Vaishnaw on Tuesday announced a series of major reforms aimed at modernising Indian Railways, improving freight operations, strengthening project execution and encouraging greater private sector participation. The reforms focus on simplifying freight pricing, improving fertilizer transportation, introducing skill certification for railway projects and allowing industries to develop customised wagon designs.
The minister said the changes are part of efforts to make railway freight more efficient and business-friendly. Fertilizer transportation, where Indian Railways handles nearly 85% of the market, will see significant changes under the new framework. The existing freight pricing system, which currently operates through around 50 different slabs, will be simplified into a per tonne-per kilometre model to make charges easier to understand and manage.
The reforms will also permit fertilizers to be transported through containers, which is expected to improve logistics efficiency and reduce loading and handling challenges. Alongside freight changes, the government has introduced a skill certification system for workers involved in railway infrastructure projects. The framework aims to ensure that personnel have the required technical expertise, helping improve safety standards and the overall quality of railway construction work.
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The Railway Ministry has also announced changes to construction contract rules to improve accountability and speed up project implementation. Under the revised system, contractors will provide a 10% performance security at the beginning of a project, while deductions from running bills will no longer be required. The eligibility criteria for contractors have also been revised, allowing participation only from companies whose pending legal disputes do not exceed 50% of their net worth. The reforms further introduce mandatory Contractor’s All Risk Insurance and Professional Indemnity Insurance, along with updated land handover procedures.
In another significant move, the government has opened railway wagon design to private industries. Earlier, wagon designs were primarily developed by the Research Designs and Standards Organisation (RDSO). Under the new system, companies can create wagon designs according to their operational needs, with RDSO responsible for evaluating and approving the designs before they are introduced. The move is expected to encourage innovation, support specialised freight solutions and enhance the capacity of Indian Railways to meet evolving transportation demands.
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