Indian Railways Eases Parcel Policy Norms to Boost Business; Major Relaxations for Aggregators and Leaseholders

In a significant push to expand India’s fast-growing parcel logistics network, the Ministry of Railways has announced major relaxations in financial eligibility norms for parcel aggregators, leaseholders and stakeholders participating in various parcel-related tenders and auctions. The reforms, notified through FM Circular No. 28 of 2025, aim to attract a wider pool of participants, simplify entry barriers and accelerate the growth of the Railways’ parcel business.

The circular, issued by the Railway Board’s Freight Marketing Directorate, notes that India’s parcel segment currently functions through multiple channels — including direct railway booking, leasing of parcel space (SLR, VP and full parcel trains), indent-based operations and the JPP-RCS aggregator scheme. Since aggregators play a crucial role across all segments, the Railway Board has decided to ease financial criteria to encourage more players to join the ecosystem.

Key Policy Changes

The circular introduces three major amendments:

1. Relaxation for e-Auction Participation (FM Circular 11/2022)

A new Para 1.5 has been inserted under the existing Policy and Standard Conditions of Contract.
Under the earlier provisions, entities without turnover details updated in their IREPS profile were barred from participating in auctions that required minimum turnover. The new clause exempts leasing of parcel spaces from this condition.

This means companies can now participate in e-auctions for leased SLR and leased VP spaces without fulfilling turnover requirements, making auction participation easier and more inclusive.

2. Major Changes in Aggregator Registration for JPP-RCS Scheme

Amendments have been made to Annexure-A of FMC 31/2024:

• The earlier requirement of minimum ₹50 lakh annual turnover from logistics or transportation businesses has been removed entirely.

• The empanelment fee for becoming an Aggregator has been reduced from ₹20,000 to ₹10,000, plus applicable GST.

This major relaxation is expected to draw in small and medium logistics operators, local transporters and regional players who were previously excluded due to stringent criteria.

3. Eligibility Revision for PCET Leasing (FM Circular 02/2007)

The earlier rule that allowed only companies with ₹10 crore annual turnover over the last three financial years to participate in Parcel Cargo Express Train (PCET) leasing tenders has been replaced.

Now, all registered leaseholders are eligible to participate in open tenders—regardless of turnover.

Publicity and Stakeholder Engagement

The Railway Board has instructed all Zonal and Divisional Railway units to conduct wide publicity campaigns to ensure stakeholders are informed of the changes. Meetings are to be held with parcel operators, freight forwarders and logistics companies to explain the new relaxed criteria and encourage greater participation.

Approval and Circulation

The circular has been issued with the concurrence of the Finance Directorate of the Ministry of Railways. Copies have also been distributed to all major railway departments, including Operations, Commercial, Mechanical, RDSO, IRITM, DFCCIL and CRIS for necessary administrative and system-related updates.

A Boost to India’s Parcel Logistics Vision

The move is expected to significantly expand the Railways’ parcel business by onboarding a larger group of logistics partners, improving last-mile connectivity, enhancing freight revenue, and strengthening India’s supply chain ecosystem.