Railways allow end-users to carry third party cargo

 Railways Ministry has further liberalized its General Purpose Wagon Investment Scheme (GPWIS) to expand the ambit of prospective investors in the scheme. The amendments have been made on the basis of feedback received from investors and end users industry.

Among other things, end users (other than logistics service providers) now 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%. This will significantly reduce the initial investment required for procurement of wagons.

The scheme was announced in April 2018 and since its launch, the ministry has approved 163 rakes out of which 20 rakes have been inducted into operation. As a result of these relaxations, it is expected that the scheme will become more attractive for prospective investors.

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