Indian Railways is under fire. A new policy that shifts crucial decision-making away from field officers has sparked strong reactions from business houses and internal zones alike.
Policy Shift: What Changed?
On 18 June 2025, the Railway Board issued new guidelines. These guidelines shifted the power to waive demurrage and wharfage charges from divisional commercial officers to Additional Divisional Railway Managers (ADRMs).
Previously, officers on the ground — those interacting directly with logistics companies — held this authority. Now, decisions must go through senior officers who are not necessarily connected to the commercial department or daily freight operations.
Why the Uproar?
This change has stirred criticism from both private and government stakeholders. Many say it introduces unnecessary bureaucracy and threatens India’s Ease of Doing Business agenda.
Demurrage charges are fines for not loading or unloading wagons within the designated free time. Wharfage charges are penalties for not clearing goods after unloading. Waiving these charges is a crucial flexibility tool — often used to support business partners when delays are beyond their control.
Removing this power from frontline officers is seen as a direct blow to the logistics sector’s efficiency.
Businesses Push Back
Multiple large business houses have voiced their concerns. These include conglomerates that regularly use freight services and contribute significantly to Indian Railways’ revenue — over 70% comes from freight.
“Time is everything for us,” said a logistics manager from a leading group. “If waivers are delayed due to red tape, we’ll shift to roads. Simple as that.”
Others echoed this concern. “Divisional officers know the ground reality. They understand our challenges. Taking away their authority is counterproductive,” said a senior executive from another conglomerate.
Railways Responds
In its defense, the Railway Board claims the move aims to increase objectivity and transparency. According to Dilip Kumar, Executive Director (Information and Publicity), the waiver process will now be assessed in two stages — by the commercial department and then by ADRM and DRM.
“We want consistency,” said Kumar. “By reducing individual discretion, we ensure fairness across the board.”
Internal Dissent Grows
It’s not just external players. Several railway zones have also written to the Railway Board, demanding a reversal of the policy.
“Waiver power has always been a business tool,” a senior official from one of the zones told ThePrint. “How can you strip it from the Commercial Department, whose job is to attract and retain freight customers?”
Sources say this policy is also deepening inter-departmental tensions. Traditionally, the Commercial Department handled business operations. But the new policy places authority in the hands of officers from technical backgrounds, like the electrical department.
Old Rivalries Resurface
The Indian Railways has long battled internal turf wars. In 2020, the government attempted to resolve this by merging all services into a unified Indian Railway Management Service (IRMS). However, this was reversed last year, restoring the departmental silos.
Critics see the latest policy as a power play by technical cadres over non-technical ones. “It’s a tug-of-war inside the system,” said a railway insider. “But the cost is paid by customers — and the system itself.”
Logistics at Crossroads
India aims to boost rail freight as a cleaner, more efficient logistics option. But this policy, critics argue, risks pushing users back to road transport — a sector already overcrowded and environmentally taxing.
The Railways’ ambition to modernize logistics may suffer if real-time decision-making is compromised.
Way Forward
For now, the policy stands. But pressure is mounting. Businesses and officials alike argue that real reform must empower — not hinder — those working on the ground.
Unless corrected, the move may undermine Indian Railways’ role in the national logistics ecosystem — and derail progress toward its own freight targets.
