Executive Summary:
The Ministry of Railways addresses concerns regarding freight targets, particularly non-coal freight stagnation, revenue growth, and container performance, in response to Lok Sabha Unstarred Question No. 1832. It details the strategies implemented to achieve the 3000 MT freight target by 2030, including freight rate rationalization, incentive schemes, infrastructure improvements, and expansion of the Dedicated Freight Corridors (DFCs). The document outlines progress on Gati Shakti Cargo Terminals and railway infrastructure projects.
Key Points / Main Content:
Freight Performance and Targets:
* Indian Railways has achieved growth in overall freight revenue (8.6% CAGR), non-coal freight volume (5.0% CAGR), and container services loading (7.7% CAGR) over the past five years (2019-20 to 2024-25).
* Cement loading grew at 5.6% and food grains at 5.8%
* Strategies include converting Traditional Empty Flow Direction routes into loaded routes using concessions and diversifying the freight basket.
* The ministry is employing freight rate rationalization and various incentive schemes to promote the freight segment.
Incentive Schemes and Policy Measures:
* Implemented various measures such as Telescopic rate benefit to Domestic Coal movement in RailSeaRail RSR mode and reclassification of commodities.
* Liberalized Automatic Freight Rebate Scheme in Traditional Empty Flow Directions, Rationalization of StationtoStation Rates Policy.
* Other incentives include concessions for short lead traffic, discounts for specific cargo types, rationalized haulage rates, and exemption of weighment for certain cargo.
Gati Shakti Cargo Terminals (GCTs):
* 112 new GCTs have been commissioned since the policy launch in December 2021.
* Numerous other GCT proposals are approved and in various stages of execution, with completion expected within the policy timeframe.
Infrastructure Development:
* Increased rake/wagon availability, loadability, and train length.
* Improved infrastructure via multi-tracking, automatic signaling, and bypasses.
* Utilizing IT to improve freight operations and asset utilization.
* Induction of higher horsepower locomotives, higher capacity/high-speed wagons.
* Improved maintenance practices for rolling stock and track/signaling enhancements.
Dedicated Freight Corridors (DFCs):
* Construction of Eastern DFC (Ludhiana to Sonnagar - 1337 km) and Western DFC (JNPT to Dadri - 1506 km).
* 2741 km (96.4%) of the total 2843 km has been commissioned and is operational.
Railway Network Expansion:
* Sanctioned 431 railway infrastructure projects (new lines, gauge conversion, doubling) totaling 35,966 km at a cost of approximately Rs 6.75 lakh crore.
* 12,769 km has been commissioned with an expenditure of approximately Rs 2.91 lakh crore up to March 2025.
* 933 surveys have been sanctioned for new lines, gauge conversion, and doubling, totaling 65,488 km.
Project Implementation Challenges and Mitigation:
* Project completion is affected by land acquisition, forest clearance, utility shifting, statutory clearances, geological conditions, and law and order.
* Government steps include setting up Gati Shakti units, prioritizing projects, increasing funding, delegating powers, monitoring progress, and coordinating with state governments.
Impact Analysis:
Ministry of Railways:
* Impact: Required to implement and oversee various strategies and projects to meet freight targets and improve railway infrastructure. Accountable for the successful commissioning of projects and achievement of freight loading goals.
* Action Required: Monitor project progress, coordinate with stakeholders, and ensure timely execution of infrastructure development and policy initiatives.
State Governments:
* Impact: Involved in land acquisition, obtaining clearances, and resolving local issues that affect project timelines.
* Action Required: Expedite land acquisition, provide necessary clearances, and assist in resolving local issues to facilitate smooth project implementation.
Railway Staff and Officers:
* Impact: Need to adopt new technologies and management practices to enhance efficiency and productivity.
* Action Required: Participate in training programs and adapt to new operational procedures and technologies.
Freight Customers/Businesses:
* Impact: Beneficiaries of improved infrastructure, reduced transportation costs, and enhanced service quality.
* Action Required: Utilize the available concessions and incentives to optimize freight transportation and contribute to increased freight loading.
Key Entities Referenced
SHRI ASHWINI VAISHNAW: Minister of Railways, Information Broadcasting and Electronics Information Technology
Indian Railways: The national railway system of India, responsible for freight and passenger transport.
Gati Shakti: A national master plan for multi-modal connectivity to various economic zones.
Gati Shakti Cargo Terminal: A cargo terminal developed under the Gati Shakti plan to improve logistics and transportation.
Eastern Dedicated Freight Corridor: A dedicated freight railway line from Ludhiana, Punjab to Sonnagar, Bihar.
Western Dedicated Freight Corridor: A dedicated freight railway line from Jawaharlal Nehru Port Terminal to Dadri, Uttar Pradesh.
NITI Aayog: National Institution for Transforming India, a policy think tank of the Government of India.
Ministry of Finance: A ministry in the Government of India responsible for financial matters.
GOVERNMENT OF INDIA
MINISTRY OF RAILWAYS
LOK SABHA
UNSTARRED QUESTION NO. 1832
TO BE ANSWERED ON 30.07.2025
FREIGHT TARGET, 2030
1832. SHRI RAJA RAM SINGH:
Will the Minister of RAILWAYS be pleased to state:
(a) the manner in which the Government justify the stagnation in non-coal
freight, declining revenue growth and underwhelming container
performance in light of the stated 3000 MT freight target by 2030;
(b) whether sectors like cement, foodgrains have shown a declining trend
despite announcing diversification, If so, the reasons therefor;
(c) the details of urgent corrective steps taken/being taken by the
Government to address poor uptake of concessions like TEFD and STS
falling from Rs.5,076 crore in Financial Year 2022 to Rs.1,733 crore in
Financial Year 2025;
(d) whether out of 230 proposed Gati Shakti Terminals only 105 are
operational, if so, the reasons therefor and the timeline, if any fixed for
operations of the rest;
(e) the manner in which the Government to meet the 3,000 MT goal in view
of the fact that new DFC's is still at DPR stage; and
(f) the details thereof including the DPRs of the projects?
ANSWER
MINISTER OF RAILWAYS, INFORMATION & BROADCASTING AND
ELECTRONICS & INFORMATION TECHNOLOGY
(SHRI ASHWINI VAISHNAW)
(a) to(f): Indian Railways has achieved steady growth in coal as well non-coalfreight. During the last 5 years from 2019-20 to 2024-25, the compound
annual growth rate for overall freight revenue as well as non-coal freight
loading and container services loading is as below:
Freight revenue growth rate 8.6%
Non-coal freight volume growth rate 5.0%
Container services Loading growth 7.7%
rate
Cement loading 5.6%
Food grains 5.8%
By availing concessions for loading in empty flow direction, a number of
Traditional Empty Flow Direction routes have been converted into loaded
routes. Indian Railway has taken multi-pronged strategy to promote the freight
segment through freight-rate rationalization and adoption of various
incentive schemes. Few initiatives taken are as under:
• Diversification of freight basket,
• Telescopic rate benefit to Domestic Coal movement in Rail-Sea-Rail (RSR)
mode,
• Reclassification of commodities-Soda Ash Dense/Light, etc.
• Liberalized Automatic Freight Rebate Scheme in Traditional Empty Flow
Directions,
• Rationalization of Station-to-Station Rates Policy,
• Rationalization of Merry-Go-Round,
• Concession in Short Lead Traffic,
• Discount in freight to Fly Ash/Bed Ash traffic booked in Open/flat
Stock & covered wagons,• Diversification of commodities for carriage at Haulage rate per TEU in
container,
• Rationalized Haulage rate for Bulk Cement in container,
• Promotion of running Mini rake of containers,
• Rationalization of Haulage rate of Automobile traffic,
• Review of Busy Season charge,
• Policy for Cargo Aggregation-Cargo Aggregator Transportation Product,
• Exemption of weighment for empty container, Automobiles, etc.
So far, 112 new Gati Shakti Cargo Terminal (GCT) have been commissioned
in a short span of time since policy launch in Dec 2021. A large number of
other GCTs proposals are already approved by the respective Zonal
Railways, and the projects are in various stages of execution/construction
and expected to be completed within the timeframe prescribed under the
policy.
Further, Indian Railways has taken a number of steps to increase the
freight loading and modal share. Some of these are as under:
1. Ensuring increased availability of rakes/wagons against demand.
2. Increasing the loadability for carrying additional traffic per wagon.
Length of freight trains has also been increased to increase throughput
per train.
3. Improving infrastructure by multi tracking and automatic signaling of
busy routes and adding bypasses on busy junctions.
4. Use of Information Technology in freight operations to improve
monitoring and utilization of assets.
5. Induction of higher horsepower locomotives.6. Induction of higher capacity and high-speed wagons.
7. Improvement in maintenance practices of wagons and locomotives
resulting in increased availability of loco and rolling stock for traffic
use.
8. Improvement in track and signaling to carry higher volume of traffic.
9. Training staff and officers to adopt the new technology and management
practices.
The Ministry of Railways has taken up construction of two Dedicated Freight
Corridors (DFC) viz. Eastern Dedicated Freight Corridor (EDFC) from
Ludhiana to Sonnagar (1337Km) and the Western Dedicated Freight
Corridor (WDFC) from Jawaharlal Nehru Port Terminal (JNPT) to Dadri
(1506 Km). Out of total 2843 Km, 2741 Route Km (96.4%) has been
commissioned and operational. The work in balance section has been
taken up.
To expand the railway network to increase freight loading capacity and run
more passenger and freight trains, the network expansion work has been
taken up in a big way.
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. Rs 6.75 lakh crore are sanctioned, out of
which, 12,769 Km length has been commissioned and an expenditure of
approx. Rs 2.91 lakh crore has been incurred upto March, 2025. The
summary is as below:-Total Length
Total Exp.
Length Commissioned till
Category No. of up to
NL/GC/DL Mar’25
Projects Mar'25
(in Km) (in Km)
(Rs 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
Multi tracking
Total 431 35,966 12,769 2,90,929
Further, to increase the capacity of the rail network, in last 3 years (2022-
23, 2023-24, 2024- 25) and current FY, 933 No. Surveys (299 New line,14
Gauge Conversion and 620 Doubling) of total length 65,488 km have been
sanctioned across Indian Railways for preparation of Detailed Project
Reports.
The sanctioning of the project requires consultation with various
stakeholders including State Governments and necessary approvals viz.
appraisal of NITI Aayog, Ministry of Finance etc.
The details of commissioning / laying of new track across Indian Railways is
given below:-
Period New Track Commissioned Average Commissioning of new
tracks
2009-14 7,599 Km 1520 km/yr
2014-25 34,428 km 3130 km/yr (more than 2 times)Completion of Railway project/s depends on various factors like quick
land acquisition by State Government, forest clearance by officials of
forest department, shifting of infringing utilities, statutory clearances
from various authorities, geological and topographical conditions of area,
law and order situation in the area of project/s site, number of working
months in a year for particular project site etc. All these factors affect
the completion time and cost of the project/s.
Various steps taken by the Government for speedy approval and
implementation of Railway projects include (i) setting up of Gati Shakti
units (ii) prioritization of projects (iii) substantial increase in allocation of
funds on priority projects (iv) delegation of powers at field level (v) close
monitoring of progress of project at various levels, and (vi) regular follow
up with State Governments and concerned authorities for expeditious land
acquisition, forestry and Wildlife clearances and for resolving other issues
pertaining to projects. This has led to a substantial increase in rate of
commissioning since 2014.
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