In India freight/ cargo operations is of utmost importance because of the cross subsidy it provides to the passenger operations. Operation trains on the Indian Railway network by private firms are not allowed. However, transporting of goods in containers by private entities using the network of Indian Railways is allowed. Till now, the Ministry of Railways has permitted only 17 private entities to run containers trains on Indian Railways network. Out of these 17 licensees, only 15 are active.
As per this scheme the train rakes are owned by private entity and Indian Railways have the exclusive right to haul the brakes on its networks.
The private entities can further develop private freight terminals for its use under the Private Freight Terminal Policy of 2010 which was further revised in 2015.
Till date, the Ministry of Railways has received 59 proposals of setting up of private freight terminal. The Ministry has notified 24 proposals out of the proposals received and has already granted its in-principle approval for 35 such proposals.
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