Indian Railways Announces Reforms Across Contracting, Freight and Land Acquisition Processes

The Ministry of Railways has announced a new set of reforms covering project execution, freight operations, and land acquisition, as per an ANI news report.  

Railway Minister Ashwini Vaishnaw said the measures are part of the ministry's plan to implement 52 reforms during the year. The changes include revised contractor norms, new freight policies, and steps to simplify project approvals. 

Changes in Contractor Selection 

The ministry has revised eligibility conditions for contractors undertaking railway projects. Contractors will now have to submit a performance security equal to 10% of the contract value before work starts, replacing the earlier system where the amount was recovered through deductions from running bills. 

Companies with pending litigation exceeding 50% of their net worth will no longer be eligible to bid for railway contracts. Professional indemnity insurance and all-risk insurance have also been made mandatory.  

According to the ministry, the revised norms are intended to strengthen project execution and reduce disputes during construction. 

Focus on Freight Movement 

The Railways has allowed industries to develop freight wagon designs based on their operational requirements. The Research Designs and Standards Organisation (RDSO) will examine the designs before prototype testing, safety certification and final approval for use on the railway network. 

Container-based movement of fly ash has also been introduced. At present, fly ash is largely transported through open wagons. India generates nearly 340 million metric tonnes of fly ash every year, while the cement industry consumes around 96 million metric tonnes. Of the total production, only 13 million metric tonnes, or about 4%, is currently transported by rail. 

The ministry has also extended containerised transportation to petroleum products, fertilisers and agricultural produce.  

Licensing and Land Acquisition 

Rules for container train operators have been revised with the introduction of a single all-India licence. A uniform registration fee of ₹25 crore will apply across all routes, while renewal fees after 20 years of successful operations have been removed. 

To support infrastructure projects, the ministry has also launched the Rail Bhoomi portal for land acquisition. It estimates that the platform could reduce acquisition timelines by 30-40%, depending on the state. 

Skilling Framework 

A certification framework for workers engaged in railway projects will also be introduced. The programme will cover trades including welding, masonry, plumbing and concrete testing. The ministry said the framework can be implemented across projects within 24 months. 

Read More: EPFO Wage Ceiling Hike to ₹25,000 Deferred for Now! 

Conclusion 

The announcement includes reforms affecting project delivery, freight transportation, licensing and land management. The ministry said these initiatives will be implemented as part of its annual reform programme. 

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