LAUNCHING OF LIBERALIZED ‘COMPREHENSIVE PARCEL LEASING POLICY (CPLP) & LIBERALIZED POLICY ON ‘PARCEL CARGO EXPRESS TRAINS (PCET)
LAUNCHING OF LIBERALIZED ‘COMPREHENSIVE PARCEL LEASING POLICY (CPLP) & LIBERALIZED POLICY ON ‘PARCEL CARGO EXPRESS TRAINS (PCET)
1.Liberalized ‘Comprehensive Parcel Leasing Policy (CPLP)’
With a view to make the ‘Comprehensive Parcel Leasing Policy (CPLP)’ customer friendly, following changes are being made –
To bring stability and adequate time for business development, the duration of parcel leasing scheme is being increased from 3 years to 5 years;
Insulation from budgetary hike –
•Assured leased rates with fixed escalation @10% from 4th year
• Realistic assessment of bids
Security deposit is being rationalized as under –
•Fixed @10% of contract value for 1st year
•Incentive to run the contract for the full period
Powers is being delegated to zonal railways to fix the reserve price –
•For the 1st time zones are empowered to revise reserve price downwardly
•A Paradigm shift, this will bring dynamic pricing in parcel business depending upon various OD flows
Powers is being delegated to zonal railways to enhance EMDs amount. This will curb fake and fictitious bidders.
2.Liberalized policy on ‘Parcel Cargo Express Trains (PCET)’
The following changes are being made in PCET policy –
Duration of contract is being increased from 3 years to 6 years to give stability and adequate time for development of business
Insulation from budgetary hike
•Assured leased rates with fixed escalation @10% from 4th year
•Realistic assessment of bids
Security deposit is being rationalized as under –
•Fixed @10% of contract value for 1st year
•Incentive to run the contract for the full period
Powers is being delegated to zonal railways to fix the reserve price – For the 1st time zones empowered to revise reserve price downwardly
Minimum composition of PCET reduced to 15 vans for first 6 months of the contract period to give time to the leaseholder in the initial stage to develop business
Empowerment to Tender Committee
•SOP to finalize PCET tenders delegated
•DRMs empowered upto Rs. 25 Crore
Loading/ unloading facility at more intermediate stations – 4 intermediate stations is being allowed for a distance of 2000 km.
Souorce : PIB
Here’s the detailed scoop on the Liberalized Comprehensive Parcel Leasing Policy (CPLP) and the Liberalized Policy on Parcel Cargo Express Trains (PCET) launched by Indian Railways:
Contents
1. Launch & Context (June 15, 2025)
The policy was officially unveiled by then Railway Minister Suresh Prabhu on June 15, 2016, aimed at modernizing and making parcel services more business-friendly.
2. Liberalized Comprehensive Parcel Leasing Policy (CPLP)
Key enhancements include:
- Contract Duration Extended: From 3 years to 5 years
- Fixed Rate Escalation: 10% increase from the 4th year, insulating against budget fluctuations
- Zonal Empowerment:
- Zonal Railways can now reduce reserve prices—introducing flexibility based on market demand
- They’re also given authority to adjust Earnest Money Deposits (EMDs) to deter bid manipulation
- Security Deposit Rationalized:
- Set at 10% of contract value in the 1st year
- Structured to encourage contract adherence across the duration
3. Liberalized Policy for Parcel Cargo Express Trains (PCET)
Main policy shifts include:
- Contract Tenure Increased: From 3 years to 6 years
- Budget Protection: Leased rates are fixed with a 10% escalation from the 4th year, offering pricing predictability
- Zonal Empowerment: Similar delegation as CPLP regarding reserve pricing and EMD adjustments
- Leased Train Configuration:
- Initial 6 months: Minimum of 15 parcel vans + 1 brake van
- Post-6 months: Can scale up to 20 parcel vans, depending on demand
- Operational Delegation:
- Senior DRM (Divisional Railway Managers) empowered to finalize contracts (up to ₹25 crore)
- Intermediate loading/unloading allowed at up to 4 stations over a 2,000 km route
4. Real-World Implementations (2023–2025)
Since the policy enactment, multiple PCET services have been launched under these terms:
- Agartala (Tripura) → Sanehwal (Punjab):
- Inaugurated in May 2025
- Operates twice monthly (144 round trips over 6 years)
- Commenced with 15 parcel vans + 1 brake van, set to expand
- Managed by AVG Logistics, tied to ____₹68.95 crore contract
- Agartala → Ludhiana:
- Weekly service launched mid-2025
- Capacity starting at 364 tonnes, ramping to 484 tonnes
- Estimated revenue: ₹198 crore
- Features loading/unloading stops at Guwahati and Delhi
- Chennai (Royapuram) → New Delhi (Patel Nagar):
- PCET inaugurated January 2025
- Operated by Rail Transport Corporation of India
- Contract spans 6 years with 2 round trips weekly; projected revenue around ₹208 crore
- Capacity scaled up from 353 to 468 tonnes mid-contract
Summary Table
| Policy / Route | Duration | Capacity Details | Contract Value / Revenue |
|---|---|---|---|
| CPLP | 5 yrs | Parcel space leasing | Flexible bidding structure |
| PCET Policy | 6 yrs | 15 vans + brake van → 20 vans | Delegated contracts |
| Agartala–Sanehwal (NFR) | 6 yrs | 15 vans → expansion | ₹68.95 crore |
| Agartala–Ludhiana (PCET) | Weekly | 364 t → 484 t | ₹198 crore |
| Royapuram–Delhi (Southern Railway PCET) | 6 yrs | 353 t → 468 t | ₹208 crore |
These policy moves and service launches represent Indian Railways’ strategic push toward modern, market-aligned parcel logistics, making rail-based cargo a viable and efficient alternative to road transport.