Indian Railways has introduced a comprehensive set of structural reforms designed to accelerate project execution and integrate private sector innovation into its freight operations.
The overhaul includes stricter financial safeguards for contractors and a significant opening of technical design processes to industry players.
Under the new regulations, contractors are now required to provide an upfront performance security of 10 per cent before work commences.
This replaces the previous system where deductions were made from running bills, a change intended to improve accountability and reduce execution delays.
The move signals a shift toward more rigorous financial discipline in the state-owned carrier's supply chain.
Simultaneously, the railway ministry has opened freight wagon design to the private industry.