**Executive Summary**
On July 14, 2026, the Union Minister for Railways announced eight structural reforms (Reforms 10–17) under the ‘Reform Express’ initiative to modernize Indian Railways' freight operations. These reforms aim to reduce logistics costs, promote private investment, and transition to cleaner transportation through containerization and simplified regulatory frameworks. Key action items include the implementation of a 52-week reform target and the phased rollout of a new artisan skilling policy over the next 24 months.
**Key Points / Main Content**
**Freight Transportation and Logistics**
* **Fly Ash:** Shifted from open wagons to a containerized system using ISO-standard containers to eliminate dust pollution and enable seamless end-to-end movement from power plants to cement plants.
* **Container Sector:** Replaced the four-category licensing system with a single unified Pan-India Container Train Operator license, reducing the registration fee to a flat, non-refundable ₹25 crore.
* **Tariff Simplification:** Replaced complex slab-based freight charges for fertilizers, foodgrains, flour, and pulses with a simplified "per tonne per kilometre" rate structure.
* **Petroleum Products:** Removed barriers to allow oil companies to directly procure or lease specialized tank wagons tailored to their operational needs.
**Infrastructure and Project Management**
* **Contractor Reforms:** Mandated 10% Performance Security at the commencement of contracts and introduced stricter eligibility criteria, barring contractors with pending litigation exceeding 50% of their net worth.
* **Risk Management:** Introduced mandatory Contractor's All Risk Insurance and Professional Indemnity Insurance to protect against construction-related risks.
* **Land Acquisition:** Launched "Rail Bhoomi," a web-based portal for end-to-end land acquisition management, integrating various railway applications for real-time monitoring.
* **Handover Protocols:** Established a sequential land handover mechanism to minimize disputes and ensure timely project commencement.
**Innovation and Human Capital**
* **Wagon Design:** Shifted from RDSO-led design to a policy where private industries can propose and develop specialized wagon designs suited to specific commodities.
* **Artisan Skilling:** Established a framework for the identification, assessment, and certification of workers in critical trades (e.g., welding, masonry) using QR code-enabled certificates linked to a verification database.
**Impact Analysis**
**Container Train Operators (CTOs)**
**Impact**
They benefit from the removal of route-specific restrictions and a simplified, lower-cost licensing structure.
**Action Required**
Apply for the new unified Pan-India license and pay the uniform registration fee to operate across the entire national network.
**Construction Contractors**
**Impact**
Face more rigorous financial entry barriers and higher accountability through upfront performance security and litigation limits.
**Action Required**
Provide 10% Performance Security at contract signing and secure required All Risk and Professional Indemnity Insurance policies.
**Industrial Manufacturers and Designers**
**Impact**
Gained the flexibility to innovate and create customized freight solutions previously restricted by RDSO standards.
**Action Required**
Submit specialized wagon designs to the RDSO for evaluation, prototype manufacturing, and dynamic testing.
**Railway Artisans and Workers**
**Impact**
Standardized skill assessments ensure that only certified personnel are deployed on safety-sensitive infrastructure projects.
**Action Required**
Undergo practical and oral assessments to obtain mandatory QR code-enabled skill certificates for specialized railway works.
**Commodity Shippers (Fly Ash, Fertilizer, Foodgrains)**
**Impact**
Reduced logistics costs and improved supply chain efficiency due to simplified tariffs and flexible containerized distribution.
**Action Required**
Transition to container-based transport systems and utilize new "per tonne per kilometre" billing models.
Key Entities Referenced
‘Reform Express’: An initiative by the Ministry of Railways to implement 52 structural reforms in 52 weeks aimed at modernizing freight operations and infrastructure.
Ashwini Vaishnaw: The Union Minister for Railways who unveiled the structural reforms to enhance efficiency and promote innovation within the Indian Railways ecosystem.
Pan-India Container Train Operator licence: A unified licensing framework that replaces category-based restrictions with a single registration system to simplify container train operations across the country.
Rail Bhoomi: A web-based platform developed by CRIS for end-to-end management of land acquisition to accelerate railway infrastructure projects.
Research Designs and Standards Organisation (RDSO): The technical body responsible for evaluating and approving innovative wagon designs proposed by industry stakeholders under the new policy framework.
Ministry of Railways
Railway Minister Ashwini Vaishnaw Unveils Eight
More Structural Reforms under ‘Reform Express’
to Strengthen India's Freight Operations
New Policies to Reduce Logistics Costs, Improve Supply
Chains, Encourage Private Investment and Promote Cleaner
Freight Transportation
Reforms to Enable Faster Project Execution and Encourage
Innovation across the Railway Ecosystem: Ashwini Vaishnaw
प्रव तथ: 14 JUL 2026 5:50PM by PIB Delhi
Continuing the ‘Reform Express’, Union Minister for Railways Shri Ashwini Vaishnaw today announced
eight more structural reforms to modernise Indian Railways. With this, the total number of reforms
implemented under the initiative has reached 17. The new reforms will bring significant changes in
freight transportation, logistics, construction practices, project execution, wagon design, skilling and ease
of doing business.
Addressing the media in Rail Bhawan, New Delhi, Shri Vaishnaw said that Indian Railways is
undertaking a series of reforms to build a future-ready railway system. These reforms are part of the
Ministry’s target of implementing 52 reforms in 52 weeks to enhance efficiency, promote innovation and
strengthen the railway ecosystem. Shri Vaishnaw said the reforms announced earlier under the Reform
Express initiative have already started yielding encouraging results.
Reform 10: Fly Ash Transportation
Shri Vaishnaw said that India generates around 340 million tonnes of fly ash annually, of which nearly
96 million tonnes is utilised by the cement industry. Indian Railways transported about 13 million tonnes
of fly ash during FY 2025-26, accounting for nearly four per cent of the country's total fly ash generation.He said that fly ash has traditionally been transported through open wagons, resulting in dust pollution
during loading, transportation and unloading. Fly ash also poses a significant environmental challenge
when stored in large ash ponds at thermal power plants.
To address these issues, Indian Railways has introduced a new containerised transportation system for fly
ash. Under the new policy, specially designed ISO-standard containers will be used for transportation.
These containers can be loaded directly from the power plant through top-loading arrangements and
unloaded using side-discharge or pneumatic systems without generating dust pollution.Shri Vaishnaw said the closed-container system will enable pollution-free transportation, facilitate safe
storage within cement plants until the material is required, and significantly improve logistics efficiency.
The containers can be handled through reach stackers, allowing seamless end-to-end movement from
power plants to cement plants. The reform is expected to increase rail movement of fly ash, reduce
dependence on road transport and convert an environmental challenge into an economically productive
resource.
🚆 Railway Reform in 2026
➡ Making Fly Ash Transportation Cleaner & More Efficient
✅ Container-based rail transportation
✅ Reduced environmental impact
✅ Sustainable freight movement pic.twitter.com/mQJDiuRouW
— Ashwini Vaishnaw (@AshwiniVaishnaw) July 14, 2026
Reform 11: Reforms in the Container Sector
The Union Minister said that diversification of railway freight beyond bulk commodities requires greater
containerisation. To promote container traffic, Indian Railways has undertaken a major structural reform
in the container train operator licensing framework.
He said that under the existing system, Container Train Operator (CTO) licences were issued under four
categories (Category I–IV), with a registration fee of ₹50 crore for Category-I and ₹10 crore for each of
the other categories, along with route-specific restrictions and different registration requirements. This
has now been replaced by a single unified Pan-India Container Train Operator licence.
Under the new framework, operators will be able to run container trains across the entire Indian Railways
network without category-based restrictions. The registration system has also been simplified through a
uniform non-refundable registration fee of ₹25 crore applicable across all routes.🚆 Railway Reform in 2026
➡ Simplifying Container Train Operations across India
✅ One unified Pan-India license
✅ Easier business & faster approvals
✅ Greater ease of doing business pic.twitter.com/tXUH47EJwf
— Ashwini Vaishnaw (@AshwiniVaishnaw) July 14, 2026
Shri Vaishnaw further said that permissions will continue to remain valid for twenty years and can
thereafter be extended without payment of any renewal or extension fee, subject to successful operations.
The simplified licensing framework is expected to improve ease of doing business, encourage greater
private participation, increase containerisation, attract more non-bulk cargo to railways, reduce logistics
costs and strengthen the country's freight ecosystem.
Reform 12: Fertilizer Transportation
Highlighting the importance of fertilizer movement for the agricultural sector, Shri Vaishnaw said Indian
Railways currently handles nearly 85 per cent of fertilizer transportation in the country.
He said that the existing freight charging system comprised nearly fifty different slabs, making operations
complex. Under the new reform, freight charges have been simplified to a per tonne per kilometre basis
with a rationalised tariff structure comprising three variations.
रल व े म फटलाइजर ांसपोटशन के लए 50 तरीके के े ट ैब बन े हुए ह अब इस े बदल कर प्रत टन -
प्रत कलोमीटर बेसस पर तय कया गया ह : माननीय रल मंी @AshwiniVaishnaw जी pic.twitte
r.com/zjpHp72Luy
— Ministry of Railways (@RailMinIndia) July 14, 2026
The reform also permits transportation of fertilizers through containers. Unlike the earlier system, where
an entire rake remained detained until complete unloading at a single destination, individual containers
can now be unloaded and stored at rake points according to demand. This will enable phased distribution
based on the requirements and lifting capacity of distributors.
The Minister said containerised movement will improve wagon turnaround, reduce detention of rakes,
facilitate flexible distribution, protect fertilizers from rain and weather-related damage and improve
overall logistics efficiency.
Reform 13: Policy for Skilling Artisans in Railway Projects and Works
Shri Vaishnaw said that railway infrastructure projects involve safety-sensitive operations requiring
specialised skills, precision engineering and adherence to strict quality standards.
To ensure deployment of competent manpower, Indian Railways has introduced a comprehensive policy
for skilling artisans engaged in railway projects and works. The policy establishes a structured framework
for identification, assessment and certification of workers engaged in critical trades such as welding,
fitting, masonry and other specialised construction activities.
Under the new framework, project-specific skill requirements will be defined and workers will undergo
practical and oral assessments through designated testing authorities. Successful candidates will receive
QR code-enabled skill certificates linked to a live verification database.The Minister said implementation of the policy will commence with major and complex railway projects,
including bridges and tunnels, and will be expanded across all Zonal Railways and Production Units over
the next twenty-four months.
He said the initiative will ensure that only certified artisans and supervisors are deployed in specialised
railway works, standardise skill assessment across Indian Railways, facilitate real-time verification of
credentials, improve workmanship, strengthen quality assurance and promote skill upgradation across the
country's infrastructure sector.
Reform 14: Construction Reforms
Shri Ashwini Vaishnaw said that following the success of the contractor qualification reforms introduced
earlier this year, Indian Railways has now undertaken another major set of reforms to strengthen the
construction ecosystem and improve project execution.
The Union Minister said the reforms are aimed at encouraging serious and capable contractors, improving
quality of construction, reducing disputes and ensuring timely completion of railway infrastructure
projects.
As part of the reforms, 10 per cent Performance Security will now be obtained at the commencement of
the contract instead of being recovered through deductions from running bills. This will ensure that only
serious contractors participate in railway projects and strengthen accountability during execution.
To discourage litigation-driven contracting practices, stricter eligibility criteria have also been introduced.
Contractors having pending litigation exceeding 50 per cent of their net worth will not be eligible to
participate in railway tenders.
The reforms further introduce Contractor's All Risk Insurance and Professional Indemnity Insurance to
strengthen risk management during project execution and provide protection against construction-related
risks.
Shri Vaishnaw said that Indian Railways has also established a clearly defined and sequential land
handover mechanism to minimise disputes and facilitate timely commencement of projects.
The Minister also mentioned Rail Bhoomi, a web-based platform developed by CRIS for end-to-end
management of land acquisition. The platform integrates various Railway applications, including IRPSM,
IPAS and HRMS, enabling seamless exchange of information, online processing of major land acquisition
stages, efficient workflow management and real-time monitoring through dashboards and management
information systems. The portal is expected to accelerate land acquisition, improve project planning and
facilitate timely execution of railway infrastructure works.
Reform 15: Policy for Wagon Design Approval
Highlighting another major structural reform, Shri Vaishnaw announced a new policy for wagon design
approval aimed at promoting innovation and enabling industry participation in designing specialised
freight wagons.
The Minister said that under the existing system, wagon designs were largely developed by the Research
Designs and Standards Organisation (RDSO), with several critical components such as bogies, couplers
and braking systems being restricted to prescribed standards. This limited design flexibility and
constrained innovation.
Under the new policy, designers, manufacturers and industries will be able to develop and propose wagon
designs suited to specific commodities and operational requirements.RDSO will evaluate the proposed design and, upon in-principle approval, permit development of a
prototype. After detailed design, prototype manufacturing and rigorous static and dynamic testing, a full
rake will undergo field trials before safety certification, inspection by the Chief Commissioner of Railway
Safety and approval by the Railway Board for induction into service.
अब इंडस्ी अपनी जरूरत के हसाब स े वैगन डजाइन प्रपोज कर सकती ह। रल वे का RDSO ऐसे
डजाइन का मूांकन करग ा : माननीय रल मंी @AshwiniVaishnaw जी pic.twitter.com/jZLH
GWN8sQ
— Ministry of Railways (@RailMinIndia) July 14, 2026
Shri Vaishnaw said the new framework will facilitate development of specialised wagons for sectors such
as steel, petroleum, chemicals, milk, plastics and other industries requiring customised transportation
solutions. The reform is expected to create a new ecosystem for wagon design and manufacturing,
encourage technological innovation and enhance freight efficiency across sectors.
Reform 16: Petroleum Products Transportation
Shri Ashwini Vaishnaw said transportation of petroleum, oil and lubricant (POL) products requires
specialised tank wagons. He said the existing system, under which Indian Railways owned all tank
wagons, restricted flexibility for oil companies to introduce specialised wagons suited to their operational
requirements.
To address this, Indian Railways has removed the structural barriers governing design and induction of
petroleum tank wagons. Oil companies will now be able to procure specialised wagons directly or lease
them through leasing agencies and induct them on the Indian Railways network for specialised
requirements.
ऑयल कं पनीज को अपनी जरूरत के हसाब से वैगन डजाइन व इंडक्ट करने क अनुमत दी गई ह :
माननीय रल मंी @AshwiniVaishnaw जी pic.twitter.com/dwiybOC6HW
— Ministry of Railways (@RailMinIndia) July 14, 2026
The Minister said the reform will enable introduction of specialised tank wagons, improve logistics
planning, reduce transportation costs, promote greater movement of petroleum products through rail and
minimise risks associated with road transportation, including product losses and adulteration.
Reform 17: Foodgrains, Flour and Pulses Transportation
Shri Vaishnaw said Indian Railways has also introduced a major reform for transportation of foodgrains,
flour and pulses by simplifying freight charges and promoting containerised movement.
Under the new policy, the earlier complex slab-based freight structure has been replaced with a simplified
per tonne per kilometre rate structure. The reform permits transportation of foodgrains, flour and pulses
through containers, enabling easier handling, flexible storage and phased distribution based on
operational requirements.
The Minister said containers can be stored at the premises of sellers or buyers and distributed according
to demand, without detaining an entire rake. Since the containers remain sealed, the possibility of
contamination is significantly reduced, thereby improving the safety and quality of foodgrain
transportation while enhancing logistics efficiency.रल व े म फ़ू डेन्स ांसपोटशन के लए कई तरीके के े ट ैब बन े हुए ह अब इस े बदलकर कर प्रत टन -
प्रत कलोमीटर बेसस पर तय कया गया ह : माननीय रल मंी @AshwiniVaishnaw जी pic.twitte
r.com/TEZI4ZBFI0
— Ministry of Railways (@RailMinIndia) July 14, 2026
Under the Reform Express initiative, Indian Railways had earlier implemented nine major structural
reforms, covering continuous on-board train cleaning, expansion of Gati Shakti Cargo Terminals, the
RailTech policy and portal, digitisation of the Railway Claims Tribunal, specialised containers for salt and
automobile transportation, seven construction-quality reforms, simplified ticket cancellation and refund
rules, and digital change of boarding point.
Shri Vaishnaw said the new reforms will help shift a larger share of freight traffic from road to rail,
reducing logistics costs and delivering substantial environmental benefits. He noted that rail transport
generates nearly 90 per cent lower carbon emissions than road transport. The Minister said gradual
containerisation of additional commodities will diversify Indian Railways' freight basket beyond
traditional bulk cargo and further strengthen its freight business.
RRaaiillwwaayy RReeffoorrmmss bbyy HHoonn''bbllee MMRR
Ministry of Railways - India
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