In India freight/ cargo operations is of utmost importance
because of the cross subsidy it provides to the passenger
operations. Operation trains on the Indian Railway network by
private firms are not allowed. However, transporting of goods in
containers by private entities using the network of Indian Railways
is allowed. Till now, the Ministry of Railways has permitted only
17 private entities to run containers trains on Indian Railways
network. Out of these 17 licensees, only 15 are active.
As per this scheme the train rakes are owned by private entity
and Indian Railways have the exclusive right to haul the brakes on
its networks.
The private entities can further develop private freight
terminals for its use under the Private Freight Terminal Policy of
2010 which was further revised in 2015.