Jeevan Prakash Sharma
New Delhi, Jan 22 (PTI) Private wagon manufacturers, who significantly expanded production capacity over the past three years in line with the railway ministry's ambitious freight
expansion roadmap, are facing uncertainty as they say no fresh procurement orders have been placed after completion of the first phase.
However, railway ministry officials maintained that the assessment of wagon requirements under the plan is a continuous process and that orders will be placed as needed. The ministry remains upbeat about its freight performance in 2024-25, after Indian Railways emerged as the world's second-largest freight-carrying railway, recording freight loading of 1,617 million tonnes.
Under the National Rail Plan (NRP) framed in 2022, the railway ministry had projected a doubling of wagon strength from 3 lakh to 6 lakh by 2030 to boost freight revenues.
As part of this plan, the ministry placed its first major order for 1,17,229 wagons to be manufactured over three years starting in 2022.
Both private and public sector manufacturers delivered 37,650 wagons each in 2022-23 and 2023-24, followed by 41,929 wagons in 2024-25, marking an all-time high and an 11 per cent year-on-year increase in production.
"Almost all major manufacturers have completed deliveries by the end of 2025, except for a few smaller players who defaulted on timelines," a senior railway official said.
According to the NRP, a second procurement order for over 2 lakh wagons, to be manufactured over five years until 2030, was expected to be placed in 2025-26 with defined annual targets.
"These manufacturers scaled up capacity based on the ministry's aggressive freight expansion plans and successfully delivered over one lakh wagons in three years up to FY 2024-25," the official said.
"However, they are now anxious as the ministry has yet to indicate any intent to place the second order."
Officials noted that the NRP aims to increase railways' share in freight transportation from the current 27 per cent to 45 per cent by 2030, a target that requires a substantial increase in wagon availability.
According to the projections, the ministry was expected to procure 40,000-46,000 wagons annually between 2025-26 and 2029-30 from private and government manufacturers. Orders for these wagons should already have been placed, officials said.
Industry experts stressed that freight capacity enhancement is critical for Indian Railways, as freight operations generate the surplus used to cross-subsidise passenger services. Freight accounts for nearly 65 per cent of Indian Railways' total earnings, while the remaining 35 per cent comes from passenger services, parcels and non-fare revenue.
Meanwhile, the Standing Committee on Railways, in its report titled Increasing Freight Related Earnings of Indian Railways and Development of Dedicated Freight Corridors, tabled in Parliament in December 2025, commended the induction of around 30,000 wagons annually.
The committee observed that greater private sector participation could significantly improve timely wagon availability and urged Indian Railways to actively promote private investment by setting clear and measurable targets for private wagon ownership. PTI JP ZMN
