The Union Minister for Railways Ashwini Vaishnaw on February 26, announced the Rail Tech Policy for start-ups. He also launched the Rail Tech Portal, saying it will help bring technology into the Railways on a large scale and create a structured way to work with start-ups.
“Now there will be no barrier for start-ups to connect with Railways. The entire policy has been designed by start-ups only and it is much simplified than earlier policy,” The Indian Express quoted Vaishnaw as saying.
Under the new rail tech policy, the scale-up grant has been increased to more than three times its earlier amount and the maximum grant for building prototypes and conducting trials has been doubled.
What is the Rail Tech Policy?
The Rail Tech Policy is a framework that encourages collaboration between Indian Railways and startups. Instead of relying only on traditional procurement systems, the railways will now invite startups to develop and test new solutions directly within the railway system.
The minister said that the funding for these start-up projects will come from the concerned railway departments – such as civil, maintenance and electrical – depending on where the proposal is approved to solve a specific problem.
The policy opens major opportunities for startups working in technology and innovation. The railways will provide strong financial support. Selected startups can receive seed funding and equity investment, with up to 50% of the project cost covered. This reduces financial risk and makes it easier for young companies to develop new ideas.
“We have incorporated learnings from Defence, electronics, telecom and biotechnology. To develop the solutions by start-ups, 50% of the funding requirement will be met by Railways and once the project becomes successful, the order for the substantial period will be given to scale it up,” IE quoted Vaishnaw as saying.
He added that projects approved under the policy will first be tested in one railway division. Once they are proven to work and run smoothly, they will be expanded to other divisions, according to the IE report.
“Railways is actively looking for start-ups solutions to strengthen the safety, maintenance, employee grievances, AI cameras in coaches and other innovative ideas. The selection process will be simple where the feasibility of the technology will be checked at the concerned department level and then it will be recommended to the board for sanctioning,” the minister said.
Rail Tech Policy: Focus areas for innovation
Some of the key innovation areas the Railways is focusing on include an AI-based Elephant Intrusion Detection System (EIDS), AI-based fire detection in coaches, drone-based systems to detect broken rails, rail stress monitoring systems, sensor-based load calculation devices for parcel vans (VPUs), solar panels on coaches, AI-based coach cleaning monitoring, systems to detect obstructions in fog and AI-based pension and dispute resolution systems, according to an official release.
Infrastructure modernisation is another focus area. This includes smart stations, better track monitoring through drones and sensors, energy-efficient trains, and improved waste management systems.
In operations and logistics, startups can help with real-time train tracking, better scheduling using AI, improved freight management, and digital supply chain systems.
Rail Tech Policy: Simple selection process
The minister announced that the selection process has also been simplified. The railways will release specific problem statements or “challenges.” Startups can apply online with their proposed solutions.
Expert committees will evaluate proposals based on innovation, feasibility and impact. Shortlisted startups will present their ideas, and selected ones will receive funding along with a simplified contract for pilot projects. This process is designed to be transparent and startup-friendly.