The Indian Railways has liberalised its parcel service guidelines, allowing wider participation in leasing parcel spaces and registering as an aggregator.
A circular issued on Friday scrapped the ₹10-crore annual minimum net revenue criteria for participants to submit tenders for leasing parcel cargo express trains. The ₹50-lakh minimum annual net revenue needed for aggregating parcels has also been removed.
An official statement said the step is being taken to enhance parcel space utilisation on the national transporter.
“There is a need for attracting more aggregators into this business,” the circular read, noting aggregators’ vital role across the value chain.
The ₹20,000-fee payable by freight forwarders or transporters seeking to empanel as aggregators has also been halved.
The relaxed financial criteria are expected to encourage more participants in this business vertical where the Indian Railways has been sharpening its focus.
This October, Union railways minister Ashwini Vaishnaw launched a door-to-door delivery parcel service on the Mumbai-Kolkata route. According to official estimates, this new parcel service through railways will offer savings of about 7.5 per cent on cost and nearly 30 per cent on time compared with road transport.
State-run Container Corporation of India (Concor) has been tasked with ensuring last-mile delivery by roping in business associates, the statement said, adding customers can book parcels online.
“The parcel service can be availed by retail consumers as well,” Vaishnaw said at the time, adding that the railways has been focused on bulk goods so far though it has recently moved to boost containerised movement of parcel goods through demand aggregation.
