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Government Allocates Rs 14,500 Crore for Railways’ Infrastructure Enhancement

Indian Community Editorial TeamBy Indian Community Editorial TeamMarch 12, 20262 Mins ReadNo Comments Add us to Google Preferred Sources
Government Allocates Rs 14,500 Crore for Railways’ Infrastructure Enhancement
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Railways Minister Ashwini Vaishnaw announced an allocation of Rs 14,500 crore over three financial years to enhance customer amenities and infrastructure at goods and parcel terminals nationwide. This funding, spanning FY2024 to FY2026, aims to bolster freight logistics, improve rail freight efficiency, and enhance first- and last-mile connectivity. The national transporter is promoting the development of modern rail freight terminals under the Gati Shakti Multi-Modal Cargo Terminal policy while upgrading railway-owned goods sheds.

As of March 5, a total of 128 cargo terminals have been commissioned, with in-principle approvals granted for 288 terminals across the railway network. Additionally, Container Corporation of India (CONCOR), a Navratna PSU, has initiated door-to-door parcel services using the Joint Parcel Product – Rapid Cargo Service (JPP-RCS) on the Delhi–Kolkata and Mumbai-Kolkata corridors. The Joint Parcel Product (JPP) initiative, launched in 2022 in collaboration with India Post, targets B2C and B2B markets, particularly in e-commerce and MSME segments.

Under this model, India Post manages first- and last-mile connectivity, while Railways handles mid-mile transportation. Online booking of JPP-RCS is facilitated by empanelled parcel aggregators through the ‘Virtual Aggregation Platform’ (VAP) developed by Indian Railways. Currently, seven pairs of scheduled services operate on selected routes, generating approximately Rs 56 crore in revenue during the current financial year up to February 2026.

Furthermore, Indian Railways has introduced a pilot “Rail Parcel” app-based logistics platform at 17 stations across seven cities, including Hyderabad, Visakhapatnam, Bengaluru, and Chennai, in collaboration with private logistics providers.

Ashwini Vaishnaw Bengaluru Chennai CONCOR Container Corporation of India Gati Shakti Multi-Modal Cargo Terminal Hyderabad India Post Indian Railways Joint Parcel Product MSME Rail Parcel Rapid Cargo Service Virtual Aggregation Platform Visakhapatnam
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Indian Community Editorial Team

The Indian Community Editorial Team curates, verifies, and publishes stories that matter to Indians worldwide. From culture and community to business and innovation, our mission is to spotlight voices, ideas, and events that bring our global community closer together. Have news or a story to share? Submit it to us at [email protected].

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