Indian Railways clears single all India licence for container trains

Indian Railways has approved changes to its Model Concession Agreement that will allow Container Train Operators (CTOs) to run container trains across all routes on the network under a single, uniform All India Licence, doing away with the earlier system of separate route-wise permissions and fees, the Press Information Bureau announced on August 5, 2026. The changes will be formalised through a Gazette Notification.

Under the reform, every applicant will pay a single, non-refundable registration fee of ₹25 crore to operate across the entire Indian Railways network, replacing the earlier four-category structure that charged different fees for different route permissions. The reform also removes the earlier route-wise categorisation of licences altogether.

The approved changes allow a Container Train Operator's permission to be extended for a further 20 years after expiry, granted by the competent authority on application, subject to satisfactory performance. No extension fee will be charged for this or any future extensions granted to the same operator.

Operators currently holding Category I licences may continue under their existing category until their concession period ends, and will not be charged any fee when they renew or extend under the new licence. Operators in Category II, III, and IV may also continue under their existing categories until their concession period ends. When they renew or extend under the new licence, they will pay ₹15 crore the difference between the new ₹25 crore fee and the ₹10 crore they had already paid. This amount is also non-refundable. These operators additionally have the option to migrate early to the new licence before their 20-year concession period ends, paying the same ₹15 crore fee to do so.

The government said the uniform registration fee and removal of extension fees are expected to reduce regulatory and compliance costs for operators while simplifying the approval process. The reform is also expected to encourage greater private-sector participation and expansion of container train operations, improving rail-based freight movement nationally. Officials said increased use of rail for container transport is expected to lower logistics costs for industry, particularly for MSMEs, by offering a more efficient and cost-effective freight option. A greater shift of container traffic from road to rail is also expected to ease highway congestion, cut fuel consumption, and reduce carbon emissions.

The government described the changes as part of a broader effort to establish a simplified, uniform licensing framework for Container Train Operators, aimed at streamlining approvals and providing a common regulatory structure for container train operations under the Model Concession Agreement.