3 weeks ago
Panel urges Indian Railways to diversify freight into autos, FMCG
Trains carry things like coal, iron ore and cement for people and companies.
A group of important people in the government looked at the trains and said Indian Railways should carry many more kinds of things, like cars, snacks and packages bought online.
Right now, more than half of the goods trains carry is coal.
The group wants Indian Railways to carry different kinds of goods so it can earn more money.
They also want the railways to check the prices it charges for carrying goods every year.
The prices have not changed much since 2018.
New special train tracks have been built, and trains on them go faster than on old tracks.
But there are not enough people to drive the trains on these new tracks.
The money trains earn from carrying goods helps pay for passenger trains.
If railways carry more things, they can keep passenger tickets cheaper.
A parliamentary panel has urged Indian Railways to diversify its freight basket beyond bulk commodities like coal, iron ore and cement into automobiles, FMCG, e-commerce and fly ash.
Coal still accounted for more than 49% of total freight loading in FY26, highlighting heavy dependence on a narrow set of commodities.
The committee recommended an annual review of freight rates, which have remained largely unchanged since 2018.
Around 2,741 km of dedicated freight corridor has been commissioned, with trains averaging 37 kmph in FY25 versus 23.8 kmph on the conventional network.
The panel flagged DFC crew shortages and urged feeder route development, elimination of level crossings, 100 kmph wagons, Kavach safety systems and attractive terms for private investors.
- Who
- A parliamentary committee reviewing Indian Railways and giving recommendations to the rail operator.
- What
- The panel urged Indian Railways to diversify its freight beyond bulk commodities, review freight rates annually, and improve dedicated freight corridor infrastructure.
- Where
- India
- When
- The report references FY26 freight loading data and FY25 DFC speeds; no specific publication date is given.
- Why
- To compete more effectively with road transport, boost freight earnings to fund modernisation, and keep passenger fares affordable.
Key facts
- Coal share of freight loading
- More than 49% in FY26
- Last freight rate revision
- 2018
- DFC commissioned length
- Approximately 2,741 km
- DFC average speed (FY25)
- 37 kmph
- Conventional network average speed
- 23.8 kmph
- Target new freight segments
- Automobiles, FMCG, e-commerce, fly ash
- Additional corridors under Railway Board review
- 3
- Infrastructure recommendations
- Level crossing elimination, 100 kmph wagons, Kavach safety system, new feeder routes
Quotes
Parliamentary Railways Committee
Committee of a parliamentary panel on railways
“The committee urge Indian railways to conduct a comprehensive analysis of its existing freight portfolio, identify commodities with low rail modal share but high growth potential, assess their specific logistical requirements and address operational bottlenecks that hinder their movement by rail.”
financialexpress.com
Sources
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