The Standing Committee on Railways has recommended that Indian Railways diversify its freight revenue base beyond traditional bulk commodities such as coal, iron ore and cement, stressing that a broader commodity basket is critical for sustainable long-term growth.
In an official statement issued on Tuesday, the Committee said Indian Railways should intensify outreach to emerging and high-growth sectors including FMCG, e-commerce and fly ash, noting that overdependence on a limited set of commodities exposes freight earnings to demand fluctuations.
On the expansion of the Dedicated Freight Corridor (DFC) network, the Committee observed that Detailed Project Reports (DPRs) for three additional freight corridors have already been finalised and are currently under review by the Railway Board. It is recommended that Indian Railways make concerted efforts to attract private sector investment for future DFCs by offering commercially viable and attractive terms.
The Committee also highlighted operational challenges, urging the Railway Ministry to ensure the timely availability of trained crew for smooth operations across the DFC network. Adequate availability of suitable wagons was flagged as another critical requirement for efficient freight movement.
Noting that Indian Railways has already introduced schemes allowing private entities—including port operators, automobile manufacturers, oil, aluminium, cement and steel producers, mine owners, power generators and logistics service providers—to invest in wagons, the Committee said greater private participation could significantly improve wagon availability. It urged Indian Railways to actively promote private investment in wagons by offering freight rebates and other incentives.