In a major push to modernise Indian Railways, Union Railway Minister Ashwini Vaishnaw on Tuesday unveiled four key reforms aimed at boosting freight efficiency, streamlining project execution, strengthening construction practices and opening wagon design to private industry.
Addressing a press briefing, the minister said the reform focuses on fertilizer transportation, a segment where Indian Railways accounts for nearly 85% of the market.
As part of the overhaul, the existing freight structure — currently spread across around 50 slabs — has been simplified and shifted to a per tonne, per kilometre pricing model.
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The changes will also allow fertilizers to be transported in containers, a move expected to improve logistics efficiency and reduce handling costs.
The other reform introduces a skill certification framework for railway projects.
The certification will apply to individuals working on railway infrastructure projects and is aimed at ensuring that workers possess the necessary technical skills, improving the quality and safety of project execution.
The government also announced sweeping changes to construction contracts under the 14th reform. Contractors will furnish a 10% performance security at the start of a project, with no further deductions from running bills.
Eligibility norms have been tightened, restricting participation to companies whose pending litigation does not exceed 50% of their net worth.
The reforms also mandate Contractor's All Risk Insurance and Professional Indemnity Insurance, while revising land handover norms to facilitate smoother project implementation.
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In another reform introduced, the government has opened railway wagon design to industries.
Earlier, wagon designs were developed exclusively by the Research Designs and Standards Organisation (RDSO).
Going forward, industries will be allowed to design wagons tailored to their operational requirements, with RDSO evaluating and approving the final designs before deployment.
This is expected to spur innovation and accelerate the development of specialised freight solutions.
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