Indian Railways Invests Rs 14,500 Crore for Terminal Upgrades: Minister Ashwini Vaishnaw
Synopsis
Discover how the Indian government is investing Rs 14,500 crore to elevate freight logistics and enhance infrastructure at goods and parcel terminals, significantly impacting the logistics landscape.
Key Takeaways
Investment: Rs 14,500 crore for terminal upgrades.
Timeframe: FY2024, FY2025, FY2026.
Goal: Improve freight logistics and customer amenities.
Modernization: Development of modern rail freight terminals.
Partnership: Collaboration with India Post for parcel services.
New Delhi, March 12 (NationPress) The Minister of Railways, Ashwini Vaishnaw, announced on Thursday that the government has earmarked Rs 14,500 crore over the next three financial years to enhance customer facilities and infrastructure at goods and parcel terminals nationwide.
In response to a question in the Lok Sabha, Vaishnaw detailed that this funding encompasses FY2024, FY2025, and FY2026, with the goal of fortifying freight logistics, boosting rail freight productivity, and improving connectivity for both the first and last miles.
As part of an extensive initiative, the national railway service is promoting the establishment of modern rail freight terminals through the Gati Shakti Multi-Modal Cargo Terminal policy while concurrently upgrading railway-owned goods sheds. As of March 5, a total of 128 cargo terminals have been commissioned, and 288 terminals have received in-principle approvals across the railway network.
Additionally, the minister pointed out that the Container Corporation of India (CONCOR), a Navratna PSU, has initiated door-to-door parcel services utilizing the Joint Parcel Product – Rapid Cargo Service (JPP-RCS) on the Delhi–Kolkata and Mumbai-Kolkata corridors.
The Joint Parcel Product (JPP) initiative was first introduced in 2022 in collaboration with India Post, targeting both business-to-consumer (B2C) and business-to-business (B2B) sectors, especially in the e-commerce and MSME domains. Under this model, India Post ensures first- and last-mile connectivity, while the Railways manage mid-mile transportation.
"Through this scheme, online booking of JPP-RCS (in units of VPs) is facilitated by empanelled parcel aggregators via the ‘Virtual Aggregation Platform’ (VAP) created by Indian Railways," the minister stated.
Currently, seven pairs of scheduled services operate on chosen routes, generating approximately Rs 56 crore in revenue from the current financial year up to February 2026.
Vaishnaw also mentioned that Indian Railways has launched a pilot Rail Parcel app-based logistics platform at 17 stations across seven cities, including Hyderabad, Visakhapatnam, Bengaluru, and Chennai, in partnership with private logistics firms.
Point of View
This investment by the Indian government illustrates a strong commitment to enhancing freight logistics and infrastructure. Such developments are crucial for boosting the economy and improving efficiency in the logistics sector, aligning with national growth objectives.
NationPress
7 Jul 2026
Frequently Asked Questions
What is the total amount allocated for terminal upgrades?
The government has allocated Rs 14,500 crore over three financial years for upgrades.
Which financial years are covered by the allocation?
The allocation covers FY2024, FY2025, and FY2026.
What is the purpose of the investment?
The investment aims to strengthen freight logistics, improve rail freight efficiency, and enhance connectivity.
How many cargo terminals have been commissioned?
As of March 5, a total of 128 cargo terminals have been commissioned.
What is the Joint Parcel Product?
The Joint Parcel Product is an initiative targeting B2C and B2B markets, providing door-to-door parcel services.
