Indian Parliamentary Panel Urges Railways to Cut Coal Dependence, Chase Autos and E-Commerce Freight

India's Parliamentary Standing Committee on Railways, chaired by MP C M Ramesh, has urged Indian Railways to urgently diversify its freight portfolio away from coal and other bulk commodities, warning that slowing revenue growth from traditional cargo threatens the network's long-term financial resilience.

Coal alone accounted for just over half of Railways' total freight loading in FY 2024-25 — 823 million tonnes of the 1,617 million tonnes carried. The committee said year-on-year revenue growth from coal and iron ore has begun to slow, and called on Railways to target high-growth segments currently dominated by road transport, including automobiles, FMCG goods and e-commerce parcels.

Among its recommendations, the panel urged Railways to conduct a comprehensive review of its existing freight portfolio and develop zone-specific strategies — including targeted discounts — to attract freight in regions with limited mineral or industrial traffic that could otherwise move by road.

The recommendations add to mounting pressure on Indian Railways to modernize its freight business model as the network's Dedicated Freight Corridors near completion and competition from road logistics intensifies.