Railways initiates policy for auto sector

In order to take advantage of the booming automobile sector, Railways has formulated and implemented an innovative policy that is expected to facilitate bulk movement of automobile traffic by rail.

Besides helping the railways to increase its share in automobile transportation, the policy will aid in the development of automobile and ancillary hubs across the country.

Under the policy, any registered company in India, i.e., manufacturer of automobile or logistics company or Society for Indian Automobile Manufacturer ( SIAM) or registered freight train operator having annual turnover of Rs 20 crore during last financial year, can apply.

Railway will provide the land for such hubs on license basis initially for a period of seven years. The license fee shall be payable as per extant policy. Such automobile and ancillary hubs will be used as a common user facility for general use of the automobile industry, without any exclusive right.