The Railways will now provide space to postal department and private players to ferry their parcels in the guard's compartment of some selected trains.
According to the partnership with Department of Post (DoP), which aims to increase the national transporter's revenue, the front portion of the guard's compartment will be allowed to be used to carry upto one tonne of parcel at a rate of Rs.12,954.
"Parcel is the fastest moving freight business of Indian Railways. Through this new Business Parcel Policy not only India Post but any private player can also book space in trains for movement of their business parcel," Railway Minister Suresh Prabhu said Monday while launching the parcel service in Mumbai-Howrah Mail.
Railways, which earns about Rs.2000 crore a year from parcel buisness, aims to attract more parcel with the increased e-commerce activities.
While DoP will collect the parcel, it will be the railways responsibility to ensure its faster transportation.
Six trains, including Mumbai Mail have been identified for the parcel service, and later more trains will be added to it, Prabhu said.
Before launching the scheme, the Railways had tried the service in Howrah-Dibrugarh Kamrup Express and Hyderabad- Nizamuddin Deccan Express.