Railways should diversify freight earnings: Parliamentary Committee

Indian Railways should diversify sources of freight earnings, moving beyond coal, iron ore and cement, the Standing Committee on Railways recommended Tuesday. An official statement said the Committee noted a broader commodity basket is essential for ensuring sustainable growth.

The Railway Ministry should “intensify outreach to sectors such as FMCG, e-commerce, fly ash,” the Committee emphasised, adding diversification is imperative for long term sustainability.

Commenting on future dedicated freight corridors (DFCs), the Committee noted that Detailed Project Report (DPR) for three additional freight corridors have already been finalised and are currently under review by the Railway Board. “The Indian Railways (should) make concerted efforts to attract private sector investment for future DFCs by offering commercially viable and attractive terms,” the committee recommended.


It also urged the national transporter to take necessary and effective measures to ensure the availability of adequate crew required for the smooth operation of trains on the DFC network.

The Committee emphasised that the timely availability of suitable wagons is essential for the efficient movement of goods by rail. Indian Railways have introduced schemes enabling private entities such as port operators, automobile manufacturers, oil producers, aluminium, cement and steel producers, mine owners, power generating companies, logistics service providers to invest in wagons.

“Increased private sector participation can significantly improve the timely availability of necessary wagons,” the Committee said, urging Indian Railways to actively promote private sector investment in wagons by offering rebates on freight charges.