**Summary:**
This document addresses Lok Sabha Unstarred Question No. 2894, concerning the alleged socioeconomic impact of privatizing brake van services, specifically regarding accessibility and affordability for farmers, small traders, and daily wage workers. The question also probes the potential increase in the cost of living for laborers and traders, the impact on Railway revenue, and whether the government is considering a review of the privatization policy.
Minister of Railways Shri Ashwini Vaishnaw clarifies that all passenger trains have two brake vans (SLRs) attached, which are utilized for transporting perishables, passenger luggage, newspapers, and magazines between designated stations. Furthermore, parcel space within these brake vans is leased to aggregators. Since 2022, the leasing process has transitioned from tender-based to e-auction, aiming for a more dynamic and efficient realization of earning potential. Zonal Railways are advised to carefully assess feasibility and local conditions when offering parcel space in LHB design brake vans for e-auction.
Freight rates for parcel space booked directly through the Railway are determined by the applicable parcel tariff, while rates for leased space are market-driven. The response asserts that this system benefits small farmers and MSMEs and has contributed to the growth of parcel traffic for Indian Railways.
Key Entities Referenced
SHRI SHYAMKUMAR DAULAT BARVE: Member of LOK SABHA, questioner regarding the privatisation of Brake Van services.
MINISTRY OF RAILWAYS: The government ministry responsible for railways in India, the recipient of the parliamentary question.
LOK SABHA: The lower house of the Parliament of India, where the question was raised.
SHRI ASHWINI VAISHNAW: Minister of Railways, Information Broadcasting and Electronics Information Technology, respondent to the parliamentary question.
Brake Van services: Railway services involving the use of brake vans for goods transport, the subject of the privatisation inquiry.
Indian Railways: The state-owned railway company of India.
Micro Small and Medium Enterprises MSME: Small businesses that benefit from transportation using brake vans
Zonal Railways: Divisions of Indian railways that are responsible for taking care of brake vans
GOVERNMENT OF INDIA
MINISTRY OF RAILWAYS
LOK SABHA
UNSTARRED QUESTION No. 2894
TO BE ANSWERED ON 06.08.2025
PRIVATISATION OF BRAKE VAN SERVICES
†2894. SHRI SHYAMKUMAR DAULAT BARVE :
Will the Minister of RAILWAYS be pleased to state:
(a) whether it is a fact that socio-economic issues being caused due to
privatisation of the Brake Van services which was an accessible and
affordable mode of goods transport for the farmers, small traders and
daily wage workers but the said service has been handed over to the
private players;
(b) if so, the details thereof;
(c) whether it is a fact that the cost of living of the thousand of
labourers as well as rural and small traders increased and it has
adversely affected the revenue capacity and budget balance of
Railways and if so, the details thereof;
(d) whether the Government is considering to formulate any concrete
policy for making brake Vans services available for public use by
reviewing the said decision and if so, the details thereof; and
(e) the details of the decision making process regarding the
privatisation of the said Services, analysis of profit and loss and
revenue earned through Brake Van freight services during the last five
years?
ANSWER
MINISTER OF RAILWAYS, INFORMATION & BROADCASTING AND
ELECTRONICS & INFORMATION TECHNOLOGY
(SHRI ASHWINI VAISHNAW)
(a) to (e): All the passenger carrying trains have 02 brake vans (SLRs)
attached to them. The space in the brake van is used for transportation
of perishables, passenger luggage, newspapers, magazines etc,
between nominated pair of stations.
…2-2-
In addition, the parcel space in brake vans is also leased out to
aggregators.
The mode of leasing has shifted from tender based to e-auction since
2022, which is more dynamic and helps in realization of true earning
potential. While putting up parcel space in brake vans (SLRs) of LHB
design for e-auction, Zonal Railways have been advised to take due
care, considering its feasibility and the local conditions.
The freight rate for parcel space booked by Railway is as per the
applicable parcel tariff, while freight for the leased parcel space is
market determined. Transportation in brake vans is benefitting small
farmers and persons attached with Micro Small and Medium Enterprises
(MSME sector), and has facilitated growth in the parcel traffic of Indian
Railways.
******