Ministry of Railways Announces Eight Structural Reforms under 'Reform Express'

Union Minister for Railways Ashwini Vaishnaw unveiled eight structural reforms aimed at modernizing Indian Railways' freight operations, bringing the total number of reforms under the initiative to 17. These reforms are part of the Ministry's target of implementing 52 reforms in 52 weeks to enhance efficiency, promote innovation, and strengthen the railway ecosystem.

Fly Ash Transportation Reform

Indian Railways introduced containerized transportation for fly ash to address environmental challenges. India generates approximately 340 million tonnes of fly ash annually, with 96 million tonnes utilized by the cement industry. During FY 2025-26, railways transported about 13 million tonnes, accounting for nearly 4% of total generation. The new system uses specially designed ISO-standard containers with top-loading and side-discharge or pneumatic systems to eliminate dust pollution during transportation and unloading. This closed-container system enables pollution-free transportation, facilitates safe storage at cement plants, and improves logistics efficiency through reach stacker handling, potentially increasing rail movement and reducing road dependence.

Container Sector Reforms

A major structural reform replaced the existing four-category Container Train Operator (CTO) licensing system with a single unified Pan-India license. The previous system had registration fees of ₹50 crore for Category-I and ₹10 crore for other categories with route-specific restrictions. The new framework features a uniform non-refundable registration fee of ₹25 crore applicable across all routes without category-based restrictions. Permissions remain valid for twenty years and can be extended without renewal fees subject to successful operations, aiming to improve ease of doing business, encourage private participation, and increase containerization of non-bulk cargo.

Fertilizer Transportation Reform

Indian Railways, which handles nearly 85% of fertilizer transportation in the country, simplified the freight charging system from nearly fifty different slabs to a per-tonne-per-kilometre basis with three rationalized variations. The reform also permits containerized fertilizer transportation, allowing individual containers to be unloaded and stored at rake points according to demand rather than detaining entire rakes until complete unloading. This enables phased distribution based on requirements, improves wagon turnaround, reduces rake detention, protects fertilizers from weather damage, and enhances logistics efficiency.

Skilling Artisans Policy

A comprehensive policy establishes a structured framework for identification, assessment, and certification of workers engaged in critical trades such as welding, fitting, and masonry. Workers will undergo practical and oral assessments through designated testing authorities, with successful candidates receiving QR code-enabled skill certificates linked to a live verification database. Implementation will commence with major complex projects including bridges and tunnels, expanding across all Zonal Railways and Production Units over twenty-four months to ensure certified artisans are deployed, standardize skill assessment, and improve workmanship.

Construction Reforms

New construction reforms introduce 10% Performance Security obtained at contract commencement instead of through deductions from running bills to ensure serious contractor participation. Stricter eligibility criteria prohibit contractors with pending litigation exceeding 50% of their net worth from participating in tenders. The reforms also introduce Contractor's All Risk Insurance and Professional Indemnity Insurance for better risk management and establish a sequential land handover mechanism to minimize disputes. The Rail Bhoomi web-based platform developed by CRIS integrates various railway applications (IRPSM, IPAS, HRMS) for end-to-end land acquisition management, enabling online processing, efficient workflow, and real-time monitoring through dashboards.

Wagon Design Approval Policy

A new policy allows designers, manufacturers, and industries to develop and propose wagon designs suited to specific commodities rather than relying solely on RDSO-developed designs. The process involves RDSO evaluation, in-principle approval, prototype development, rigorous static and dynamic testing, full rake field trials, safety certification, inspection by the Chief Commissioner of Railway Safety, and final Railway Board approval for induction. This framework aims to facilitate specialized wagons for steel, petroleum, chemicals, milk, plastics, and other industries, encouraging technological innovation and enhancing freight efficiency.

Petroleum Products Transportation Reform

Indian Railways removed structural barriers governing tank wagon design and induction, allowing oil companies to procure specialized wagons directly or through leasing agencies for induction on the railway network. This enables introduction of specialized tank wagons suited to operational requirements, improving logistics planning, reducing transportation costs, promoting greater rail movement of petroleum products, and minimizing risks associated with road transportation including product losses and adulteration.

Foodgrains, Flour and Pulses Transportation

The reform simplifies freight charges from complex slab-based structures to a per-tonne-per-kilometre rate structure and permits containerized movement of foodgrains, flour, and pulses. Containers can be stored at seller or buyer premises and distributed according to demand without detaining entire rakes. Sealed containers reduce contamination possibilities, improving safety and quality while enhancing logistics efficiency through flexible storage and phased distribution.

These reforms follow nine previously implemented structural reforms covering continuous on-board train cleaning, Gati Shakti Cargo Terminals expansion, RailTech policy, digitization of Railway Claims Tribunal, specialized containers for salt and automobiles, construction-quality reforms, and simplified ticket cancellation rules. The initiatives aim to shift freight traffic from road to rail, reducing logistics costs and generating environmental benefits through 90% lower carbon emissions compared to road transport, while diversifying Indian Railways' freight basket beyond traditional bulk cargo.