Indian Railways Launches New Private Scheme for Oil Firms

Indian Railways has launched a new private wagon scheme designed to strengthen logistics support for India’s oil and gas industry through long-term investment and structured lease returns. This is reported by the railway transport news portal Railway Supply.

Indian Railways Boosts Oil Logistics with Private Scheme

The scheme allows oil companies to invest in specialized tank wagons while Indian Railways handles procurement and operations. Each BTPN wagon costs about ₹8.5 million, or approximately $102,000 USD.

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Private and public petroleum companies are eligible to participate. Railways will pay quarterly lease charges at an annual rate of 11% for 15 years. After that, the wagons become the property of Indian Railways.

Operations will remain under the direct control of Indian Railways. This move addresses past congestion issues caused by underutilized return journeys under the old GPWIS framework.

Indian Railways Gains from Long-Term Public-Private Model

The new scheme applies insights from earlier programs while improving efficiency in bulk cargo transport. Oil firms recover their investments gradually while the rail network maximizes usage of dedicated assets.

Each lease cycle offers predictable returns for participants, encouraging private sector investment without sacrificing public oversight. This structured collaboration improves rail infrastructure and reduces logistics costs.

Moreover, the streamlined model minimizes the problem of empty rake movements, which previously strained network capacity. With Indian Railways managing scheduling, traffic flow is expected to improve across major freight corridors.

This initiative marks a significant step in India’s strategy to modernize freight systems, foster infrastructure partnerships, and attract consistent capital into national transport projects.

Source, photo: energy.economictimes.indiatimes.com

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