Indian Railways tightens contractor rules, opens freight wagon design to private industry

Indian Railways has announced a fresh set of reforms aimed at improving transparency in contracting and encouraging innovation in freight transportation. As part of the new measures, stricter eligibility norms and performance standards will be introduced for contractors to improve project execution and accountability.

At the same time, industries will now be allowed to design freight wagons tailored to their specific cargo requirements, marking a major shift in the railway's freight policy.

Under the proposed wagon design policy, companies can develop customised wagons for commodities such as steel, cement, automobiles, and other specialised cargo, while safety certification and approvals will continue to be handled by the Research Designs and Standards Organisation (RDSO) and the Chief Commissioner of Railway Safety (CCRS).

The reforms aim to improve loading and unloading efficiency, attract more freight to rail, and reduce logistics costs.

Railway officials said the changes are expected to boost private sector participation, promote innovation, and support the government's vision of increasing rail's share in freight transport.

With Indian Railways nearing full electrification, the reforms are also expected to strengthen green logistics by shifting more cargo from road to rail, reducing fuel consumption and carbon emissions.