The Ministry of Railways is reportedly considering offering an additional 200 Gati Shakti Cargo Terminals (GCTs) to corporate entities and freight operators for their rail-based supply chains, encouraged by the positive response received.
According to reports from Business Standard, establishing these 200 terminals may necessitate private investment ranging from Rs 12,000 to Rs 14,000 crore. However, Legal Parivar has not independently verified this information.
In the Union Budget for 2022-23, Finance Minister Nirmala Sitharaman had announced the plan to set up 100 GCTs within three years.
An official quoted by Business Standard stated, “The response to these first 100 GCTs has been impressive, and shows that there is appetite in the private sector – both freight operators and manufacturers – to invest in rail transit infrastructure. As soon as the first 100 GCTs are bid out, we have plans to establish 200 more terminals in the coming years.”
Currently, 77 GCTs have been commissioned with an investment of Rs 5,400 crore from operators, averaging Rs 69 crore per terminal.
In December 2022, railways received 129 applications from state-owned companies and private players. Among the operators of these terminals are the Adani group, the JSW group, Nayara Energy, Container Corporation of India, and Indian Oil, as reported.
By expanding the number of GCTs, the government aims to diversify its freight basket, particularly in the miscellaneous goods segment. Railways estimates suggest that each new GCT can potentially increase rail freight volumes by a million tonnes per annum, resulting in an additional revenue of Rs 100 crore for the railways.
