Indian Railways has allowed private players to operate special freight trains for exclusive transportation of automobiles throughout the country. The aim is to open another revenue stream for the cash-starved entity and increase railways? share of auto traffic from 3-4% to 30% in the next five years.
Automobile is one of the fastest growing sectors with total production expected to double by 2016. The new policy of Automobile Freight Train Operator will facilitate bulk movement of automobile traffic by rail from production hubs to consumption centres. The policy allows private firms to tie up with end users of automobiles.
Logistics firms and wagon leasing companies with at least one year?s experience and networth of Rs 20 crore to Rs 30 crore can apply for supplying goods under the policy, effective since July 19. The private entity will have to share its revenue with railways for using its infrastructure.
Facing a shortage of funds to implement Rs 14 lakh-crore expansion plans in the next 10 years, the railway ministry is seeking increased private investments. It has already announced a policy on development of automobile and ancillary hubs at strategic locations across the country. Policies on operating special freight trains and freight terminals have also been issued.
