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Private companies to develop goods-sheds at railway stations

Friday, 16 Oct 2020

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The Indian Railways is set to develop goods-sheds at railway stations through private investment.

With a view to making the Railways' freight operations more robust, the Railway Board unveiled a policy for setting up new goods-sheds facilities and developing the existing goods-sheds at a large number of railway stations through private participation.

Private companies will be entitled to a share in the terminal charges and terminal access charges for all inward and outward traffic dealt at the goods-sheds for a period of five years from the date of completion of work.

The share will be decided through a competitive bidding process and the party seeking the least share will be awarded the contract.

Private companies developing these goods-sheds will be able to utilise available space for advertisements, setting up food kiosks and canteens during duration of the contract.

The Indian Railways has around 1,200 existing goods-sheds which will be redeveloped. Besides, there is room for developing new goods-sheds at the remaining ones at over 7,000 railways stations.

For greenfield goods-sheds, private companies will be permitted to develop loading or unloading facilities for full rakes, approach roads, drainage, general lighting, covered sheds if required, facilities for labour and other related infrastructure at goods-sheds.

For brownfield goods-sheds, companies will be allowed to repair or re-develop and maintain the existing facilities and also set up additional facilities as required. The competitive bidding will happen at the divisional level.

The Indian Railways is moving aggressively towards larger private participation in its infrastructure works. Allowing private companies to operate passenger trains will alone entail an investment of Rs 30,000 crore as per government estimates.