Misuse of GPWIS and Rail-infrastructure on the cost of public money!

How so many circuits allowed per rake blindly to each rake and what RDSO is doing in this issue?

General Purpose Wagon Investment Scheme (#GPWIS) was launched by Ministry of Railways to support manufacturing plants mainly Steel plants, cement plants, power plants to get smooth continue supply of raw material. But over the period of time many plants, traders, iron ore exporters and coal importers purchased the railway wagons under this scheme.

Rail transportation system experts say that GPWIS is a new version of the old Wagon Investment Scheme (WIS) which was started during the time of Jena-Vishadhar and proved to be a huge traffic scam in terms of misuse of rail infrastructure and staff. The purpose of which was to benefit certain people, as a result of which it was closed. The same objective or motive and result is now being achieved by GPWIS in its new form.

He said, “Railway administration has allowed blindly in hurry to all players to buy wagons in so many circuits – means one rake can move in many many circuits like tourist taxi or a truck of private transporter – resulted so many railway rakes started on different sector but mainly in Odisa, Jharkhand and Chhattisgarh sector.

Also railway officials has allowed investors to run these rakes as logistic provider resulted that there were crowd to buy wagons under the scheme, traders and plant owners who don’t have sufficient cargos to transport, they have started loading third party cargoes on a very high premium on cost of railway.

Mainly iron ore explorters and coal importers started misusing this scheme like black marketing as logistic is a challenge in Eastern India and they made huge profits because of all these railway infrastructure have lot of pressure as all rakes are running on the same railway lines and same railway man power, the recent Balasore accident was also due to collision of iron ore rake and Coromandel Express train.

Enquiry can be conducted how so many circuits allowed per rake blindly to each rake and what RDSO is doing in this issue?

Now, Railway has stopped giving permission to purchase the wagon under this scheme in March 2023 but it was too late and people bought so many rakes in last 4 years. Also, railway is allowing to buy the rakes whoever has applied in this scheme before 13.03.2023 so still many rakes will be inducted in the congestion of present system and people are earning ₹500-700 per MT as premium and railway is giving 10% freight rebate under this scheme means railway is loosing revenue and private players are earning more and more profits by using rail infrastructure. This is one of the big scam.

General Purpose Wagon Investment Scheme (GPWIS)

GPWIS was introduced by Ministry of Railways in 2019 to facilities the manufactures to bring in the raw material to their plants without any disruption. Later it was allowed for logistics providers also.

Now the logistics providers are misusing this scheme and running rakes like trucks, which have resulted in railway line congestion due to heavy traffic, damaging the railway tracks due to heavy overloads. This is also causing undue pressure on railway staff due to increase in number of GPWIS rakes.

Iron Ore exporters and Coal importers are using GPWIS rakes of logistic providers by paying premium of Rs. 500- 700/- per ton. Indian Railway is getting nothing and giving discount of 10%, whereas the infrastructure used is of Indian Railways.

The current mishap happened in Balasore, Odisa the goods trains was Iron Ore loaded rakes.. to continue..