Private companies can run their own freight trains, says railway ministry

Indian Railways has decided to allow private companies to run their own freight trains from their private terminals. This decision, which will soon be implemented, will most probably break the government’s monopoly on the country's rail roads.

Companies from sectors such as cement, steel, auto, logistics, grains, chemicals and fertilisers have expressed their interest in running their own freight trains.

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"Through these private terminals, we'll be able to add almost 20-25 million tonnes of additional loading capacity. The demand for all commodities other than coal have [sic] seen an uptick. So, we expect companies from various sectors to come forward and invest in their own terminals at their plants or any other convenient location," a senior railway official told ET.

A successful run would pave the way of private passenger trains in the future.

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Several private companies in India, including Tata Steel, Adani Agro, Kribhco etc., have their own private terminals from where they can run these trains.

Indian railways has decided to allow 55 private freight terminals in the country at an investment of Rs 5,000 crore for this year.

However, the trains would not completely be privatised since the railway ministry will still manage the train operations. Not only this, companies will also be paying track and other usage charges.

(Image source LiveMint)