Lok Sabha Question No. 566 (UNSTARRED), answered on 2025-12-03
Subject: Freight Incentive Schemes
Ministry: RAILWAYS
Asked by: Shri Naresh Ganpat Mhaske, Dr. Shrikant Eknath Shinde, Smt. Bharti Pardhi, Shri Vishaldada Prakashbapu Patil, Shri Ravindra Dattaram Waikar, Shri Shrirang Appa Chandu Barne

## GOVERNMENT OF INDIA MINISTRY OF RAILWAYS

## LOK SABHA UNSTARRED QUESTION NO.566

## TO BE ANSWERED ON 03.12.2025

## FREIGHT INCENTIVE SCHEME

566. SHRI NARESH GANPAT MHASKE:

DR. SHRIKANT EKNATH SHINDE:

SMT. BHARTI PARDHI:

SHRI VISHALDADA PRAKASHBAPU PATIL:

SHRI RAVINDRA DATTARAM WAIKAR:

SHRI SHRIRANG APPA CHANDU BARNE:

Will the Minister of RAILWAYS  be pleased to state:

- (a) whether the Government has launched freight incentive schemes to attract bulk and small cargo to Railways and if so, the details thereof;
- (b) the categories of concessions and services offered to industries and logistics players;
- (c) whether initiatives like Gati Shakti Cargo Terminals are linked to these freight reforms and if so, the details thereof;
- (d) the manner in which the Government ensures faster turnaround times and last-mile connectivity; and
- (e) whether  these  schemes  strengthen  country's  supply  chain efficiency and logistics competitiveness particularly in Balaghat Lok  Sabha  Constituency,  MMR  Region  and  Maharashtra  and  if so, the details thereof?

## ANSWER

MINISTER OF RAILWAYS, INFORMATION & BROADCASTING AND ELECTRONICS & INFORMATION TECHNOLOGY

(SHRI ASHWINI VAISHNAW)

- (a) to (e): Indian Railway has taken multi-pronged strategy to promote
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the  freight  segment  and  strengthening  of  the  supply  chain  through freight-rate rationalization and adoption of various incentive schemes.

## i. Some of the initiatives taken are as under:

- Introduction  of  rationalized  and  simplified  Gross  Tonnes  (GTKM) based rate for haulage of bulk cement in tank containers. The new rate  structure,  without  complex  slab  structure  (for  weight  and distance), enhances ease of doing business.
- Telescopic  rate  benefit  extended  to  domestic  Coal  movement  in Rail-Sea-Rail (RSR) mode,
- Reclassification  of  commodities-Soda  Ash  Dense/Light,  Soda  Bicarbonate etc.
- Liberalized Automatic Freight Rebate Scheme in Traditional Empty Flow Directions,
- Station-to-Station Rates Policy,
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- Rationalization of Merry-Go-Round,
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- Concession in Short Lead Traffic,
- Discount in freight to Fly Ash/Bed Ash  traffic booked in Open/flat Stock & covered wagons,
- De-notification  of  commodities  for  carriage  at  Haulage  rate  per TEU in container,
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- Joint Parcel Product-Rapid Cargo Service (JPP-RCS) scheme
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- Incentives for Containerized transportation of Tiles Traffic,
- Policy  for  Cargo  Aggregation-Cargo  Aggregator  Transportation Product, etc.
- ii. Indian Railway has implemented various schemes to attract private investment  in  General  Purpose  Wagons,  Special  Purpose  /  High Capacity   wagons   and    Automobile  carrier wagons for cement, oil,

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- steel, fly-ash, automobile etc. So far, around 240 rakes of special purpose  wagons,  374  rakes  of  general-purpose  wagons  and  48 rakes of automobile wagons have been inducted.
- 'Bulk Cement Terminal Policy' has been launched recently as part of Railway reforms for Cement transportation to facilitate setting up  Bulk  Cement  terminals  on  Railway  land.  This  will  enhance transportation of Bulk Cement by Rail through specialized wagons,
- Under  the  'Gati  Shakti  Multi-Modal  Cargo  Terminal  (GCT)'  policy launched  to  facilitate  development  of  cargo  terminals  on  non Railway land, as well as on Railway land (partially or fully), so far, 118 new GCTs have been commissioned since the implementation of  the  policy,  with  an  estimated  traffic  capacity  of  192  million tonnes per annum (MTPA).
- From  the  financial  year  2023-24  onwards,  an  amount  of  ₹14500 crore  has  been  allocated  for  improvement  of  freight  and  parcel terminals.
- A  total  of  9  new  Gati  Shakti  Cargo  terminals(GCTs)  have  been commissioned  so  far  in  Maharashtra  state  including  in  MMR region, with total investment of ₹548.69 crore. Further, 91 works have  been  sanctioned  in  Maharashtra  state  including  in  MMR region, of amount of ₹ 932.34 crore for development of goods and parcel terminals.
- iii. The Government is taking several steps to ensure faster turnaround times and last mile connectivity which includes capacity enhancement works such as:
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- Doubling and multi tracking of important Railway routes,

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- Engine-on-Load(EOL) scheme,
- Mechanization of Terminals with silo, preweighbin, Tipplers, Hoppers, Conveyor belts etc,
- Commissioning of Eastern Dedicated Freight Corridor (EDFC) and Western Dedicated Freight Corridor (WDFC),
- Construction of flyovers and by-passes to decongest busy terminals,
- Containerization of Cargo and providing direct Rail connectivity to industries  under  the  PM  Gati  Shakti  Cargo  terminals  policy  for enhancing efficient Multimodal Transportation Development.

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