Railways rolls out National Permit-like license for container train operators
The Indian Railway Ministry has introduced a simplified, uniform all-India licensing framework for Container Train Operators (CTOs) to boost cargo movement. The new policy replaces route-specific licenses with a single Rs 25 crore fee, aiming to reduce compliance costs and encourage private sector participation.
Why it matters
This reform is expected to improve logistics efficiency and reduce road congestion by making rail freight more competitive and accessible for private operators.
NEW DELHI: Container Train Operators (CTOs) will now be able to operate across the entire Indian railways network with a single licence by paying a one-time fee, in a move akin to the National Permit system for trucks. The reform aims to boost containerised cargo movement by rail, reduce road congestion and cut air pollution, especially as nearly the entire railway network has been electrified and rail freight remains significantly cheaper than road transport.Introducing the major overhaul of the CTO licensing framework in nearly two decades, the railway ministry has approved a uniform all-India licence fee of Rs 25 crore, replacing the existing system under which operators paid Rs 10 crore or Rs 50 crore depending on the category of licence.Under the existing regime, concession agreements are valid for 20 years and may be extended by another 10 years.
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