Indian Railways has approved a simplified licensing framework for private Container Train Operators (CTOs), replacing the existing route-based licensing structure with a single national licence that will allow operators to run container trains across the entire Indian Railways network.
Under the current system, CTOs require permissions based on different route categories, with licensing fees varying according to the extent of network access. The new framework will consolidate these categories, giving operators nationwide access through a single licence.
The reform has been approved through amendments to the Model Concession Agreement (MCA), the contractual framework governing the operation of private container trains. The changes will come into legal effect following their publication in the Gazette of India.
Under the new system, the registration fee for an all-India licence will be ₹250 million (₹25 crore), or approximately €2.5 million, and will be non-refundable. Existing Category I operators will be permitted to continue under their current licences until the end of their concession period and can subsequently shift to the national licence without paying an additional registration fee.
Operators currently holding Category II, III and IV licences can also continue under their existing permissions. However, they will be required to pay ₹150 million (₹15 crore) if they choose to renew, extend or shift to the national licence before their existing concession expires.
Indian Railways is also doing away with the extension fee. CTO concessions can be extended for another 20 years, subject to satisfactory performance, without requiring a separate payment.
The move is expected to provide operators with greater flexibility in planning container services across ports, inland terminals and industrial centres. Removing route-based licensing restrictions could allow CTOs to respond more quickly to changing cargo flows and develop services across a wider network.
The reform could also help address one of the persistent challenges in rail freight: maintaining balanced container flows. Efficient container train operations depend on securing cargo in both directions, including import, export and domestic traffic, to maximise the utilisation of wagons and rail paths.
For shippers, a more flexible licensing regime could eventually expand the availability of rail-based container services, particularly beyond established port corridors. However, the broader commercial impact will depend on whether operators use the additional flexibility to introduce new routes, connect more terminals and increase train frequencies.
