DELHI(Metro Rail News): Union Railway Minister Ashwini Vaishnaw made several announcements about the railway sector today (July 14). Speaking about the Reform in the Container Sector, he said that the Container Train Operator (CTO) licence categories will be unified into one group.
Previously, the CTO licensing was executed in four categories (I,II,III,IV). There was also a non-refundable registration fee of ₹50 Crore for Category I and ₹10 Crore for each other category. Validity of permission was 20 years from the date of operation. A renewable fee of ₹25 Crore for Category I and ₹5 Crore for the rest of the categories was implied beyond 20 years.
Unified Licencing to encourage agencies
The minister announced a single Unified all India Container Train Operator (CTO) License to run container trains on all routes of Indian Railway. Further, a uniform non-refundable registration fee of ₹25 Crore will be implied for all routes. The renewable fee for extension after 20 years is also eliminated.
The weekly brief metro & rail professionals read.
Benefits of the Reform
The reform will foster ease of doing business by eliminating the complicated licensing system. It is projected to increase investment in the sector. Moreover, the reform will strengthen the freight network across the country by encouraging more agencies to join the sector. Furthermore, this will increase the container freight.