Indian Railways recently unveiled a private wagon scheme designed to support logistics support of India’s oil and gas sector through long-term investments with structured lease returns, according to railway transport news portal Railway Supply.
Indian Railways Expand Oil Logistics With Private Scheme
Indian Railways’ Buy, Transport & Pay Now (BTPN) wagon program allows oil companies to invest in tank wagons at approximately Rs8.5 Million per vehicle ($102,000 USD). Each BTPN wagon costs about $102,000 USD to procure and operate.
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Private and public petroleum companies may participate, while railways will pay lease charges at 11% annually over 15 years; once their tenure expires, wagons become part of Indian Railways and become their property.
Indian Railways will remain directly in control of operations to ease past congestion issues caused by underutilized return journeys under its former Global Passenger Watch Information and Reporting System framework (GPWIS).
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Indian Railways Gains from Long-Term Public-Private Model
The new scheme applies insights from earlier programs while improving efficiency in bulk cargo transport. Oil firms recover their investments gradually while the rail network maximizes usage of dedicated assets.
Each lease cycle offers predictable returns for participants, encouraging private sector investment without sacrificing public oversight. This structured collaboration improves rail infrastructure and reduces logistics costs.
Moreover, the streamlined model minimizes the problem of empty rake movements, which previously strained network capacity. With Indian Railways managing scheduling, traffic flow is expected to improve across major freight corridors.
This initiative marks a significant step in India’s strategy to modernize freight systems, foster infrastructure partnerships, and attract consistent capital into national transport projects.
Source, photo: energy.economictimes.indiatimes.com
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