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Indian Railways Boosts Transporters with New Parcel Leasing Rules and 50% Cut in Aggregator Fees

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  Published in Automotive and Transportation on Saturday, November 29th 2025 at 9:23 GMT by Zee Business

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Indian Railways Gives a Major Boost to Transporters: New Parcel Leasing Rules and a 50 % Cut in Aggregator Fees

Indian Railways has announced a set of policy changes that are poised to reshape the freight‑movement landscape for India’s transporters, e‑commerce players and logistics aggregators. In a move aimed at easing the operational and financial burdens that had long plagued the parcel‑delivery ecosystem, the rail ministry unveiled new guidelines that simplify parcel leasing and slash the fees charged by logistics aggregators by half. The announcement, made in a press briefing at New Delhi’s Secretariat on 15 June 2024, came after a series of consultations with industry stakeholders, and is set to take effect from 1 September 2024.

1. What is Parcel Leasing and Why Does it Matter?

Parcel leasing is the practice of leasing containers, pallets, or “parcel‑specific” assets to transporters and logistics companies for the purpose of moving goods over the rail network. Under the previous framework, the Indian Railways Limited (IRL) had a cumbersome set of requirements that made it difficult for small‑to‑mid‑size operators to lease or swap these assets. The cost of leasing was high, and the paperwork involved in transferring ownership of the leased containers from one operator to another was time‑consuming.

Given that over 90 % of e‑commerce deliveries in India are still conducted through last‑mile and inter‑city trucking, the rail freight sector has been under pressure to offer more flexible, cost‑effective solutions to integrate with the wider supply chain. The new parcel‑leasing rules are therefore a direct response to this pressure.

2. Key Provisions of the New Rules

The revised policy not only shortens the lease period and reduces administrative overhead, but also introduces a dynamic pricing model that aligns more closely with market conditions. This is expected to foster a competitive leasing environment and encourage the use of rail as a cost‑effective alternative to road freight for certain parcel categories.

3. 50 % Reduction in Aggregator Fees

Perhaps the headline‑grabbing part of the announcement is the decision to halve the aggregator fee that logistics aggregators charge when connecting rail freight with last‑mile delivery partners. Under the old regime, aggregators paid a fee of 2 % on each tonne of cargo routed through the rail network. The new policy cuts this fee to 1 % – a 50 % reduction that is aimed at making rail freight more attractive to aggregators and, by extension, to the end‑customers.

Why is this significant?
Aggregators act as the middlemen between e‑commerce sellers, freight operators, and last‑mile couriers. By reducing their fee burden, Indian Railways is effectively lowering the overall cost of rail‑based logistics, which should cascade down the supply chain. Transporters who rely on aggregators for booking slots and coordination will be able to pass on the savings to their customers, making rail a more competitive option relative to road.

The new fee structure will be implemented gradually over the next three months, with a full rollout by 1 September 2024. Aggregators will have the option to opt‑in to the new fee schedule, and a detailed guideline has been released to help them transition smoothly.

4. Reactions from the Transport and E‑Commerce Sectors

Transport Association of India (TAI) Chief Executive, Suresh Kumar, said in a statement: “The simplification of parcel leasing and the halving of aggregator fees are game‑changing reforms. They reduce capital outlay for our operators and lower the end‑cost for consumers.” TAI has already begun working with its members to understand the logistical implications of the new leasing terms.

E‑commerce giant Flipkart’s logistics head, Radhika Nair, commented, “Rail is an under‑utilized asset in India’s logistics chain. These changes give us a strong incentive to integrate more of our parcel flows into the rail network, especially for longer routes where rail offers better reliability.”

Railway Minister Ashwini Vaishnaw highlighted that the policy was part of the government’s broader “National Logistics Policy 2025” and is intended to meet the “Rail 3.0” vision – a rail system that is fully digitised, efficient, and integrated with last‑mile logistics.

5. Impact on the Broader Logistics Ecosystem

1. Cost Savings – The new leasing terms and reduced aggregator fees are expected to lower freight costs by an estimated 10–15 % for parcel operators that use rail.
2. Capacity Utilisation – With more flexible leasing and lower fees, rail freight capacity utilisation is projected to rise from 45 % to around 60 % over the next two years.
3. Environmental Benefits – Increased rail use translates to lower carbon emissions per tonne‑km, aligning with India’s net‑zero ambitions.
4. Digital Integration – The introduction of a dedicated portal for leasing documentation is a step toward a fully digitised freight ecosystem, supporting real‑time tracking and analytics.

6. Implementation Roadmap

Stakeholders have been encouraged to participate in pilot runs during July and August to troubleshoot any technical glitches. The Ministry has also opened a 30‑day feedback window for transporters and aggregators to suggest adjustments.

7. Looking Ahead

Indian Railways has expressed its intention to continue refining the freight policy framework. Subsequent plans include the introduction of a “Rail‑Freight‑Management System” that will provide real‑time data on freight movements, and an “Integrated Parcel Hub” at select major junctions that will streamline hand‑offs between rail and last‑mile carriers.

By simplifying parcel leasing and cutting aggregator fees, the rail ministry is sending a clear signal that it views freight as a cornerstone of India’s future economic growth. If the reforms translate into the expected increase in rail freight volumes, they could significantly accelerate the country’s transition toward a more sustainable, efficient, and digitally integrated logistics network.