Lok Sabha Question No. 2370 (UNSTARRED), answered on 2023-03-15
Subject: Modal Share in Freight Transportation
Ministry: RAILWAYS
Asked by: Y. S. Avinash Reddy

## GOVERNMENT OF INDIA MINISTRY OF RAILWAYS

## LOK SABHA UNSTARRED QUESTION NO.2370 TO BE ANSWERED ON 15.03.2023

## MODAL SHARE IN FREIGHT TRANSPORTATION

## 2370. SHRI Y.S. AVINASH REDDY:

Will the Minister of RAILWAYS be pleased to state:

- (a) whether the Government proposes to attract more cargo to the Railways and increase its modal share in freight transportation thereby  reducing  logistics  cost  of  the  industry,    if  so,  the details thereof;
- (b) whether  the  move  is  also  expected  to  speed  up  plans  for divestment of 30.8% in Container Corporation of India Ltd.;
- (c) if so, whether the policy also provides for use of railway land to set up solar plants at a nominal cost and encourages development of social infrastructure; and
- (d) if so, the details and the present status thereof?

## ANSWER

MINISTER OF RAILWAYS, COMMUNICATIONS AND

ELECTRONICS & INFORMATION TECHNOLOGY

(SHRI ASHWINI VAISHNAW)

- (a) to (d)  A Statement is laid on the Table of the House .

*****

STATEMENT  REFERRED  TO  IN  REPLY  TO  PARTS  (a)  TO  (d)  OF UNSTARRED QUESTION NO. 2370 BY SHRI Y.S. AVINASH REDDY TO BE  ANSWERED  IN  LOK  SABHA  ON  15.03.2023  REGARDING  MODAL SHARE IN FREIGHT TRANSPORTATION

- (a) Yes,  Sir.  The  National  Rail  Plan  envisages  that  the  share  of freight traffic by rail should go up from current share of 28% to 44% by 2051.  The  construction  of  Dedicated  Freight  Corridors  (DFCs)  on  the important high density route is an important policy measure by Indian Railways to arrest the trend of falling market share of railways in the country  and  also  will  shift  the  advantage  in  favour  of  rail  transport. DFC operation  will  bring-in  efficiency  in  freight  operation  and  enable rail tariff being more competitive because of its following operational/design features:
-  Higher throughput per wagon and per train: Run Heavy Haul trains.
-  Lower Energy Consumption: Reduce Operation and Maintenances Costs
-  Reduction in Transit  time:  Reduce  logistic  cost  of  transportation and better utilization of Rolling stock

Moreover Indian Railway has taken number of multi-pronged strategy to  increase  its  modal  share  in  freight  segment  which  includes  tariff rationalization  and  Tariff/freight  incentive  schemes  which  includes; diversification of freight basket, Liberalised 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 traffic booked in Open/flat Stock & covered wagons, Round trip charging for ultra short lead (upto 50Kms) container traffic, Round Trip Traffic (RTT) Policy, Automobile Freight Train Operator Scheme (AFTO), Introduction  of  Cube  Container  for  two  wheeler  traffic.  A  New  'Gati Shakti  Multi-  Modal  Cargo  Terminal  (GCT)'  policy  has  also  been launched to facilitate development of cargo terminals on non Railway land, as well as on Railway land (partially or fully) etc.

In  addition,  various  other  schemes  have  also  been  introduced  to attract private investment in General Purpose Wagons, Special Purpose  /  High  Capacity  wagons    and    Automobile  carrier  wagons. Presently around 232 rakes have been inducted under various investment schemes.

- (b) Strategic disinvestment of Container Corporation of India Limited (CONCOR) is being carried out by Department of investment and Public Asset Management (DIPAM). DIPAM has informed that the Cabinet Committee of Economic Affairs (CCEA) in   its meeting held on

20.11.2019 has given in principle approval for Strategic disinvestment of  Government  of  India's  (GOI)  holding  of  30%  out  of  its  present holding  of  54.8%  in  CONCOR  along  with  transfer  of  management control to strategic buyer.

(c) & (d) The Master Circular on 'Policy for Management of Railway Land'  issued  on  04.10.2022  permits  setting  up  of  Renewable  power plants for exclusive use of Railways for a lease period of upto 35 years @ ₹ 1/- per square meter (sqm) per annum. Further, it permits Hospitals selected through a transparent policy and Kendriya Vidyalaya Sangathan for a lease period of upto 60 years @ ₹ 1/- per square meter (sqm)  per  annum.  So  far,  Indian  Railway  has  set  up  about  6.7  Mega watt  (MW)  of  Solar  Power  Plant  on  it  vacant  land.  Details  are  as follows:

-  3MW solar plant at Modern Coach Factory (MCF), Raebareli (Uttar Pradesh) has been commissioned.
-  2 MW solar plant at Diwana (Haryana) has been Commissioned.
-  1.7 MW solar plant at Bina (Madhya Pradesh) has been commissioned.

Further, Railway vacant land has also been used for setting up of plant of 50 MW capacity at Bhilai.

*****