Executive Summary:
This document addresses the decline in the railway sector's share of freight traffic since 1951 and outlines remedial steps and initiatives to enhance transparency in Dedicated Freight Corridors (DFCs). It details infrastructure projects, policy changes, and technological advancements aimed at increasing freight volume and building trust with logistics providers. The Minister of Railways provided this information on July 30, 2025, in response to a question in Lok Sabha.
Key Points / Main Content:
Freight Transportation Enhancement Initiatives:
* Indian Railways is undertaking new railway lines, multitracking, and port connectivity enhancements.
* GatiShakti Multi Modal Cargo Terminals (GCTs) are being developed to improve cargo handling.
* A corridor-based approach streamlines movement on high-density routes.
* Modernization of rolling stock and High Horse Power (HHP) locomotives are improving capacity.
* Railway freight volume has increased 22.1 times in FY 2024-25 since 1951.
Infrastructure Projects:
* As of April 1, 2025, 431 railway infrastructure projects (154 New Line, 33 Gauge Conversion, and 244 Doubling) are sanctioned, totaling 35,966 Km and costing approximately 6.75 lakh crore.
* 12,769 Km of the total length has been commissioned with an expenditure of approximately 2.91 lakh crore incurred up to March 2025.
* New track commissioning averaged 4.2 Km/day from 2009-14 and 8.57 Km/day from 2014-25.
* Doubling commissioning averaged 375 Km/year from 2009-14 and 1687 Km/year from 2014-25.
* The average annual budget allocation for multitracking projects increased from ₹2,461 crore/year (2009-14) to ₹20,882 crore/year (2014-25).
* Zone-wise and year-wise details of railway projects are available on the Indian Railways website.
Policy and Scheme Initiatives:
* Liberalized investment schemes, including the General Purpose Wagon Investment Scheme and Liberalized Special Freight Train Operator scheme, have been launched.
* The Gati Shakti Multi-Modal Cargo Terminal (GCT) policy aims to develop freight terminals. 112 terminals have been commissioned since December 2021.
* A new Cargo Aggregator Transportation Product has been introduced.
* Freight booking, charging, payment, and tracking processes have been computerized.
* Concessions are provided under the Merry-Go-Round (MGR) policy, along with discount schemes for bagged consignments and short-lead concessions.
* Freight rates for automobile traffic have been rationalized.
* Special Haulage Rate for Bulk Cement has been initiated.
* Telescopic rate benefit to domestic coal traffic in Rail-Sea-Rail (RSR) mode is provided.
* Station-to-Station (STS) rates have been rationalized.
Transparency in Dedicated Freight Corridors (DFCs):
* Dedicated Freight Corridors Corporation Limited ensures business opportunities are accessible to all eligible customers without discrimination.
Impact Analysis:
Logistics Providers and Shippers:
* Impact: Greater transparency and non-discriminatory access to business opportunities, such as booking of rakes and opening of terminals, on Dedicated Freight Corridors (DFCs). Enhanced efficiency and cargo handling capabilities through modernized infrastructure and policy initiatives.
* Action Required: Stay informed about available opportunities and eligibility criteria for utilizing DFCs. Leverage the improved infrastructure and streamlined processes to optimize logistics operations.
Indian Railways:
* Impact: Responsibility for implementing and managing various infrastructure projects and policy initiatives to increase freight volume and market share. Increased budget allocation and focus on modernization and efficiency.
* Action Required: Continue to execute sanctioned infrastructure projects, monitor progress, and ensure timely completion. Enforce policy initiatives and adapt strategies based on performance and feedback from stakeholders.
Customers:
* Impact: Benefit from computerized processes, concessions, and rationalized freight rates.
* Action Required: Utilize available schemes and products, such as the Cargo Aggregator Transportation Product, and stay informed about changes in freight rates and policies.
Key Entities Referenced
Indian Railways: The national railway system of India, responsible for freight and passenger transportation.
Dedicated Freight Corridors (DFCs): A network of dedicated railway lines for freight transport, aimed at increasing efficiency and capacity.
Ministry of Railways: The government ministry responsible for the administration of rail transport in India.
SHRI ASHWINI VAISHNAW: The Minister of Railways, Information Broadcasting and Electronics Information Technology.
Gati Shakti Multi Modal Cargo Terminal (GCTs): A policy and infrastructure initiative to develop freight terminals and improve cargo handling capabilities.
General Purpose Wagon Investment Scheme: A scheme aimed at encouraging investment in wagons to increase the rail system's capacity.
Liberalized Special Freight Train Operator scheme: A scheme to promote private sector participation in freight train operations.
Dedicated Freight Corridors Corporation Limited: The entity responsible for the construction and operation of the Dedicated Freight Corridors.
GOVERNMENT OF INDIA
MINISTRY OF RAILWAYS
LOK SABHA
UNSTARRED QUESTION NO. 1752
TO BE ANSWERED ON 30.07.2025
DEDICATED FREIGHT CORRIDORS OF RAILWAYS
1752. SHRI VE VAITHILINGAM:
Will the Minister of RAILWAYS be pleased to state:
(a) whether it is a fact that since 1951 the railway sector’s share as a
transporter of freight traffic has declined from 86.2 percent to 27
percent today;
(b) if so, the details of the remedial steps proposed to be taken by the
Government in view of the fact that the country’s logistics sector is
required to grow by 25 per cent to meet the requirement of moving
goods; and
(c) the initiatives taken/being taken by the Government to ensure
transparency in the operations of the Dedicated Freight Corridors
(DFCs) in order to build trust with logistics providers and shippers?
ANSWER
MINISTER OF RAILWAYS, INFORMATION & BROADCASTING AND
ELECTRONICS & INFORMATION TECHNOLOGY
(SHRI ASHWINI VAISHNAW)
(a) & (b) Indian Railways has undertaken a comprehensive set of
initiatives aimed at increasing its modal share in freight transportation.
These efforts include the construction of new railway lines,
multitracking of existing routes. Port connectivity is being
strengthened to facilitate seamless multimodal logistics, while thedevelopment of Gati-Shakti Multi Modal Cargo Terminal (GCTs) is
improving cargo handling capabilities. A corridor-based approach is
being adopted to streamline movement over the high-density routes.
Modernization of rolling stock and the induction of High Horse Power
(HHP) locomotives are improving hauling capacity and reliability of
assets. The railway freight volume has increased 22.1 times in FY
2024-25 since 1951.
As on 01.04.2025, across Indian Railways, 431 Railway infrastructure
projects (154 New Line, 33 Gauge Conversion and 244 Doubling) of
total length 35,966 Km, costing approx. 6.75 lakh crore are
sanctioned, out of which 12,769 Km length has been commissioned
and an expenditure of approx. 2.91 lakh crore has been incurred upto
March, 2025. The summary is as under: -
Total Length Total Exp
No of Length Commissioned upto
Category
Projects NL/GC/DL till Mar'25 Mar'25(
(km) (Km) in Cr)
New Lines 154 16,142 3,036 1,45,318
Gauge
33 4,180 2,997 22,753
Conversion
Doubling
244 15,644 6,736 1,22,858
/Multitracking
Total 431 35,966 12,769 2,90,929
Zone-wise/year-wise details of all Railway projects are made available
in public domain on Indian Railway’s website.
The details of commissioning/ laying of new track across Indian
Railways is given below:-New track
Period Average commissioning of new tracks
Commissioned
2009-14 7,599 Km 4.2 Km/day
2014-25 34,428 Km 8.57 Km/day (more than 2 times)
The details of conversion of single line sections to multi-track
sections across Indian Railways is given below: -
Doubling
Period Average commissioning of Doubling
Commissioned
2009-14 1,875 Km 375 Km/ year
2014-25 18,558 Km 1687 Km/ year (Nearly 5 times)
The Average Annual Budget allocation for multi-tracking projects
across Indian Railways is given below:
Period Outlay
2009-14 2,461 crore/year
2014-25 20,882 crore (More than 8 times)
Further, the following steps have been taken to enhance traffic on
Indian Railways:
Liberalized investment schemes (General-Purpose Wagon
Investment Scheme, Liberalized Special Freight Train Operator
scheme, Automobile Freight Train Operator) in wagons have been
launched for induction of more wagons in the rail system.
‘Gati Shakti Multi-Modal Cargo Terminal (GCT)’ policy has been
launched to develop freight terminals and increase cargo. 112
terminals under the new policy have been commissioned since
Dec 2021. To facilitate cargo aggregation and thereby, expand the
commodity basket, a new transportation product “Cargo
Aggregator Transportation Product” has been introduced.
Freight booking, charging, payment, tracking of consignment,
wharfage, demurrage, refund all processes have been
computerized to make the freight booking easier and accessible.
Inter alia, Concessions are being provided under the “Merry-Go-
Round” (MGR) policy. Discount schemes for bagged consignments
in open and flat wagons and Short-lead concession scheme have
been launched. Rationalization of freight rates for automobile
traffic has been done to promote transportation of automobiles by
Rail. Charging of Special Haulage Rate for Bulk Cement (Cement
in loose form) has been initiated. Telescopic rate benefit to
domestic coal traffic in Rail-Sea-Rail (RSR) mode provided.
Rationalization of Station-to-Station (STS) rates carried out to
attract additional traffic. Busy Season Surcharge have been
reviewed.
(c) In order to ensure greater transparency and build trust with
logistics providers and shippers, Dedicated Freight Corridors (DFCs)
Corporation limited has ensured that Business opportunities are
accessible to all customers without any discrimination as per eligibility
criteria fixed by Ministry of Railways, opportunities such as booking of
rakes, opening of terminals etc. are available over entire Dedicated
Freight Corridors.
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