New Delhi: The Indian Railways has readied a new private wagon scheme aimed at addressing transport requirements of the oil and gas sector. As per the plan, the wagons will be procured by the Railway Board on behalf of oil companies and deployed for their use, said officials.
The bogie tank wagons for petroleum products (BTPN) are specifically designed for transport of bulk petroleum products.
"This new scheme is aimed at encouraging the petroleum industry to invest in railway infrastructure," said a senior official, who did not wish to be identified. The official said public sector oil marketing companies and the private sector players that are allowed to sell petroleum products in the country can participate in the scheme.
Oil companies will bear the cost of wagons upfront but recover their investment through lease charges paid by the railways on the cost of procurement at 11% per annum for the first 15 years. These wagons will become a property of the Indian Railways after 15 years. A typical BTPN costs around ₹85 lakh per unit.
"Quarterly lease charges will be paid in advance... the operation of these wagons will be managed by the Indian Railways," the official said, adding the new scheme took learnings from the erstwhile General Purpose Wagon Incentive Scheme.
The return of such special purpose schemes comes two years after halting applications under GPWIS following track congestion issues. Railway rakes move from point A to B where they unload the cargo, and then move to point C where they reload for the return journey. The private sector, however, does not load on return journeys, and the movement of empty rakes is seen as causing congestion.
Railways will have control over the operations of new private sector wagons under this scheme.
The bogie tank wagons for petroleum products (BTPN) are specifically designed for transport of bulk petroleum products.
"This new scheme is aimed at encouraging the petroleum industry to invest in railway infrastructure," said a senior official, who did not wish to be identified. The official said public sector oil marketing companies and the private sector players that are allowed to sell petroleum products in the country can participate in the scheme.
Oil companies will bear the cost of wagons upfront but recover their investment through lease charges paid by the railways on the cost of procurement at 11% per annum for the first 15 years. These wagons will become a property of the Indian Railways after 15 years. A typical BTPN costs around ₹85 lakh per unit.
"Quarterly lease charges will be paid in advance... the operation of these wagons will be managed by the Indian Railways," the official said, adding the new scheme took learnings from the erstwhile General Purpose Wagon Incentive Scheme.
The return of such special purpose schemes comes two years after halting applications under GPWIS following track congestion issues. Railway rakes move from point A to B where they unload the cargo, and then move to point C where they reload for the return journey. The private sector, however, does not load on return journeys, and the movement of empty rakes is seen as causing congestion.
Railways will have control over the operations of new private sector wagons under this scheme.
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