Railways rolls out National Permit-like licence for container train operators

As part of the reforms, the existing route-wise categorisation of licences will be abolished

NEW DELHI: Container Train Operators (CTOs) will now be able to operate across the entire Indian railways network with a single licence by paying a one-time fee, in a move akin to the National Permit system for trucks. The reform aims to boost containerised cargo movement by rail, reduce road congestion and cut air pollution, especially as nearly the entire railway network has been electrified and rail freight remains significantly cheaper than road transport.Introducing the major overhaul of the CTO licensing framework in nearly two decades, the railway ministry has approved a uniform all-India licence fee of Rs 25 crore, replacing the existing system under which operators paid Rs 10 crore or Rs 50 crore depending on the category of licence.Under the existing regime, concession agreements are valid for 20 years and may be extended by another 10 years. Under the revised framework, operators will instead be eligible for a fresh 20-year licence after successfully completing the initial 20-year concession period, with no additional renewal fee.”The changes will be notified through a Gazette notification,” the railway ministry said.As part of the reforms, the existing route-wise categorisation of licences will be abolished. The ministry said the simplified framework would lower compliance costs and provide greater operational flexibility. There are currently 22 CTOs in the country, and the ministry expects the new policy to attract more private operators.

Existing operators will be allowed to continue under their current licence category until the end of their concession period. However, they may opt for an early migration to the new all-India licence by paying Rs 15 crore.The ministry said the uniform registration fee and the removal of renewal charges would reduce regulatory and compliance costs while simplifying the approval process.”The amendments are aimed at establishing a simplified and uniform licensing framework for CTOs 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,” it said.