India Development News & Foreign Investment Opportunities

Rail Wagon investment further liberalized

Rakes for third party cargo


Rakes for third party cargo

Avalon Consulting.


Railway Ministry has further liberalized General Purpose Wagon Investment Scheme (GPWIS) for prospective investors, on the basis of feedback received from investors and end users.

The Ministry announced on 29 Nov 2019 the following amendments:

End users (other than logistics service providers) also have been granted permission to load third party cargo in their rakes in empty direction. This will not only reduce the empty run of GPWIS rakes but will also entail additional revenue to end user investors, in form of freight rebate.

Design Loan charges on General Purpose wagons have been reduced from 5% to 1%, significantly reducing the initial investment required for procurement of wagons.

As there was long-term demand from Railway Freight Wagons Users (PSUs, Industries and other stakeholders) for better and timely availability of General Purpose Wagons (GPW), the Ministry decided in April 2018 to introduce a scheme for investment in General Purpose Wagons.

Since the launch of this scheme, approvals for 163 rakes have been granted and 20 rakes have already been inducted into operation.

As a result of these relaxations, the Ministry expects the scheme to become more attractive for prospective investors.

Leave A Reply

Your email address will not be published.