Ø Good News for Container
Train Operators as They Can Operate Across All Routes with a Single All India Licence,
Improving Ease of Doing Business
Ø Indian Railways Simplifies
Licensing Framework; Reforms to Reduce Transportation Costs and Pollution, Ease
Road Congestion and Benefit Industry, Particularly MSMEs
Ø Other Reforms Include
a Uniform Registration Fee of ₹25 Crore and No Renewal Fee for Extension
·
Indian
Railways
has approved amendments to the Model
Concession Agreement (MCA) governing the operation of container
trains by private Container
Train Operators (CTOs).
·
The
revised framework will be notified through a Gazette Notification.
·
The
existing route-wise
licensing categories will be abolished.
·
CTOs
will be eligible for a Single
All India Licence, allowing them to operate container trains on
all routes
across the Indian Railways network, subject to approval by the Ministry of
Railways.
·
The
earlier system of different
registration fees for different route categories has been
replaced.
·
All
new applicants will pay a uniform,
non-refundable registration fee of ₹25 crore for
nationwide operations.
·
The
permission granted to a CTO can be extended
for another 20 years after expiry, subject to satisfactory
performance and approval by the competent authority.
·
No
extension fee
will be charged for the first or any subsequent extensions.
·
Category
I
operators:
o May continue under their existing
licence until expiry.
o No fee will be payable on renewal
or extension under the new licensing regime.
·
Category
II, III and IV
operators:
o May continue under their
existing licences until expiry.
o Will pay ₹15 crore on
renewal or extension under the new regime, representing the difference between
the new ₹25 crore fee and the ₹10 crore already paid.
o The ₹15 crore payment
is non-refundable.
·
Existing
Category II, III and IV operators may also opt for early migration to the new All
India Licence by paying the same ₹15
crore.
·
The
reforms are expected to:
o Simplify the licensing and
approval process.
o Reduce regulatory and
compliance costs for operators.
o Encourage greater private
participation in container train operations.
o Expand rail-based freight
movement across the country.
o Lower logistics costs,
particularly for MSMEs.
o Promote faster, more
efficient and cost-effective freight transportation.
·
Increased
movement of container cargo by rail is expected to:
o Shift freight traffic from
road to rail.
o Reduce highway congestion.
o Lower fuel consumption.
o Reduce carbon emissions and
promote sustainable freight transportation.
·
The
amendments establish a uniform,
simplified and nationwide licensing framework for Container
Train Operators, creating a common regulatory regime while facilitating easier
expansion of private container train services across the Indian Railways
network.
Indian Railways has approved modifications
in the Model Concession Agreement (MCA) governing permission for operators to run
container trains on the Indian Railways network. Under the approved changes, Container
Train Operators (CTOs) will be permitted to run container trains on all routes across
the network under a single All India license, with a uniform registration fee of
Rs 25 crore, doing away with the earlier system of separate permissions and fees
for different route categories. The changes will be notified through a Gazette Notification.
Single License for All
Routes
As part of the approved modifications,
the existing route-wise categorisation of licences will be discontinued. Subject
to approval by the Ministry of Railways, Container Train Operators will be granted
a Single All India Licence, enabling them to operate container trains across
all routes on the Indian Railways network.
Uniform Registration
Fee
The earlier system of charging different
registration fees for different route categories has been done away with. Every
applicant will now deposit a non refundable Uniform
Registration fee of ₹25 crore to operate on all routes on the Indian
Railways network.
No Fee on Extension
The approved amendments provide that the
permission granted to a Container Train Operator may be extended for a further period
of 20 years after expiry. This will be done by the Competent Authority to the same
operator on application, subject to satisfactory performance. No extension fee will
be charged for this extension or for any future extensions to the same operator.
Relief for Existing
Operators
Operators already holding Category I licenses
may continue under their existing category until their concession period ends. On
renewal or extension under the new license, no fee will be charged to them.
Operators in Category II, III and IV may
also continue in their existing categories until their concession period ends. For
renewal or extension under the new license, they will pay ₹15 crore.
This is the difference between the new fee of ₹25 crore and the ₹10
crore already paid. This amount is non refundable.
These operators may also choose to migrate
early to the new license before completing their 20 year concession period. They
will pay the same amount of ₹15 crore for early migration.
Benefits for Industry
The uniform registration fee and removal
of extension fees are expected to reduce regulatory and compliance costs for operators
while simplifying the approval process.
The simplified licensing is expected to
encourage greater private participation and expansion of container train operations,
leading to improved rail-based freight movement across the country. Greater use
of rail for container transportation is expected to reduce logistics costs for industry,
particularly MSMEs, by providing a more efficient and cost-effective freight transport
option.
Increased modal shift of container traffic
from road to rail is also expected to ease congestion on highways, reduce fuel consumption
and lower carbon emissions, contributing to more sustainable freight transportation.
Towards a Uniform and
Simplified Licensing Regime
The approved amendments are aimed at establishing
a simplified and uniform licensing framework for Container Train Operators across
the Indian Railways network. The reforms are expected to facilitate a streamlined
approval mechanism while providing a common regulatory framework for container train
operations under the Model Concession Agreement.