Parcel Services

What is “Parcel” in Indian Railways?

  • Any consignment, other than passenger’s personal luggage, that is booked & carried by a train under the head “Parcel” is termed a Railway Parcel.
  • It is a paid service under the “Goods” Tariff (not the “Passenger” Tariff) and is governed by Indian Railways Parcel (IRP) Rules, 1977 last updated 2023.
  • Statutory definition (Railways Act 1989, sec. 2(22)) – “Parcels” means such goods of every description as are authorised by the Railway to be carried by passenger train or by other trains specifically approved for parcel traffic.

1. Technical & Operational Details

1.1 Parcel Traffic Classification

  1. VPS (Vice-Priority Scale): 1st Class parcels – booked in VP vans/SLRs; charged at Scale-P (highest).
  2. Ordinary Parcels: booked in brake-vans or Luggage-cum-Brake vans (SLR).
  3. Explosive / Dangerous goods: only in Explosive vans (EXV) or Parcel Special trains with escort.
  4. Perishables: booked under “Cold-Chain” or in CCTV-fitted VP vans; priority unloading.

1.2 Coaching/Parcel Stock Used

Code Full-form Max pay-load Speed rating Usage
VP Vice-Priority van 17 t 130 km/h Rajdhani/Shatabdi parcel portions
SLR Second-class-cum-Luggage-cum-Brake 9 t 110 km/h Mail/Express
EXV Explosive van 16 t 75 km/h Ammunition, fireworks
RMS Railway Mail Service van 9 t 130 km/h Only India-Post traffic

1.3 Booking Channels

  • Physical: ~6,400 parcel counters (as on 31-03-2024).
  • Digital:
    • Parcel Management System (PMS) – web & mobile launched 01-10-2020.
    • Rail-Parcel-App – Android/iOS (real-time tracking, e-payment).
    • UTS/NTES integration – live status of parcel-carrying trains.

1.4 Charging Elements

  • Base rate (per kg) – indexed to WPI (Wholesale Price Index) every 6 months (1 Jan & 1 Jul).
  • Minimum chargeable weight – 10 kg (reduced from 25 kg w.e.f. 15-08-2023).
  • Volumetric weight – L×B×H (cm) ÷ 5,000; charged if > actual weight.
  • PMC (Parcel Minimum Charge) – ₹140 for ≤10 kg (slab-1).
  • CCA (Congestion/Empty-haul Surcharge) – 0-15 % of freight – dynamic, route-wise.
  • GST – 5 % on freight (no GST on India-Post traffic).

1.5 Liability & Claims

  • Railway’s liability – 2 × freight (max ₹100/kg) for non-insured parcels.
  • Railway’s liability – 10 × freight (max ₹500/kg) for insured parcels (max sum insured ₹50,000).
  • Claim period – 6 months from date of booking (Railways Act §106).

1.6 Delivery Time Standards (2023 Circular)

Distance slab Time std (hrs)
≤400 km 12
401-800 km 24
801-1,500 km 36
>1,500 km 48
Penalty – 10 % freight refund if beyond std (subject to force-majeure).

2. Important Facts & Figures

  1. FY 2023-24 parcel earnings – ₹3,021 crore (↑ 14 % YoY).
  2. Annual tonnage – 4.83 million tonnes (2023-24).
  3. Share of e-commerce traffic – 42 % of total parcel revenue (Amazon, Flipkart, Myntra).
  4. Average lead – 1,047 km; average yield – ₹6.25 per kg.
  5. Top revenue stations – Delhi Jn., Mumbai CST, Chennai Central, Howrah, Bengaluru Cantt.
  6. Cold-chain facilities – 65 stations with reefer plug-in (25 kW, 440 V) for refrigerated containers.
  7. CCTV coverage – 100 % of VP/SLR vans since 2022.
  8. Explosive traffic – restricted to 55 nominated stations (list available in IRCA Vol-II).
  9. Free allowance for MLAs/MPs – 100 kg/month (same as passenger).
  10. Penalty for over-loading – double the freight on excess wt. + ₹5,000 flat fine (2022 amendment).

3. Historical Milestones

Year Event
1854 First parcel consignment (Mumbai-Thane) – 2 boxes of cotton yarn.
1925 Introduction of “Luggage & Parcel Tariff” separate from goods.
1956 Railway Mail Service (RMS) vans transferred to Railways from P&T Dept.
1977 Indian Railways Parcel Rules framed (updated 1992, 2004, 2013, 2023).
1983 Launch of “Green-Label” priority parcel trains (Delhi-Mumbai).
1994 Computerised parcel receipts at Delhi, Mumbai, Chennai.
2002 Introduction of SLR with 9 t payload (ICF design).
2010 e-Parcel receipt (e-PR) pilot at 4 stations.
2015 Liberalised parcel policy – private individuals allowed to book online.
2020 COVID-19 “Parcel Special” trains – 4,284 trains ran (Mar-Dec 2020).
2021 Roll-out of Rail-Parcel-App & PMS.
2022 First dedicated Parcel Cargo Express (PCE) rake (Delhi-Guwahati).
2023 Minimum chargeable weight reduced 25 kg → 10 kg; GST reduced 12 % → 5 %.

4. Current Status & Recent Updates (2023-24)

  • Dedicated Parcel Cargo Express (PCE): 18 rakes (BCACBM wagons, 80 ft, 23 t payload, 100 km/h) running on 12 circuits (Delhi-Mumbai, Delhi-Howrah, Delhi-Chennai, etc.).
  • “One-Station-One-Product” (OSOP): 1,000 stations identified to book local product parcels (handloom, mangoes, sweets) at 40 % rebate in freight (started 12-05-2023).
  • Gati-Shakti Multi-Modal Cargo Terminals (GCT) – 7 locations (e.g. Whitefield, Krishnapatnam) provided with side-loading docks for parcel vans.
  • Amrit Bharat Station Scheme – 508 stations to get dedicated parcel complexes (1 lakh ft² each) by 2027.
  • RFID sealing – 100 % parcels sealed with tamper-proof RFID tags since 01-04-2024; reduces pilferage by 38 % (Railway Board data).
  • Drone-based last-mile pilot – Bilaspur & Secunderabad (2024) – 5 kg payload drones for 15 km radius.
  • New parcel terminal policy (Feb 2024) – private investment allowed on 50-year lease; revenue sharing 7-12 %.

5. Quick-Fire Points for Exams

  • Highest parcel earning divisionNorthern Railway (₹485 cr, FY 24).
  • Only Rly stn with 100 % mechanised parcel handlingWhitefield (Bengaluru).
  • Maximum no. of VP vans attached to a single train – 4 (Mumbai Rajdhani during COVID).
  • Explosive traffic escort rule2 trained escorts for >2 t of Class-1 explosives.
  • Free booking for – blood samples, human eyes, organs (under HAHO scheme).
  • Insurance premium – 0.6 % of declared value (min ₹30).
  • PMS generates – 12-digit Parcel Receipt Number (PRN) – first 2 digits = Rly zone code.
  • Latest WPI base year – 2017-18 (used for biannual rate revision).

6. Model MCQs for Railway Exams

1. What is the minimum chargeable weight for a railway parcel as per the 2023 amendment?

Answer: 10 kg

2. Which of the following vans is authorised to carry Class-1 explosives?

Answer: EXV (Explosive van)

3. The Parcel Management System (PMS) was launched on –

Answer: 1st October 2020

4. What is the maximum speed rating of a VP van?

Answer: 130 km/h

5. The liability of Railways for an insured parcel is –

Answer: 10 times the freight subject to ₹500/kg max

6. Which station is declared as the first 100 % mechanised parcel handling terminal?

Answer: Whitefield (Bengaluru)

7. The freight rebate given under OSOP scheme is –

Answer: 40 %

8. How many dedicated Parcel Cargo Express (PCE) rakes are in operation as on 31-03-2024?

Answer: 18

9. The claim for loss of parcel must be filed within –

Answer: 6 months

10. Which GST rate is applicable on parcel freight w.e.f. 15-08-2023?

Answer: 5 %

11. The RFID sealing of parcels was made mandatory from –

Answer: 1st April 2024

12. The first Railway Parcel Rules were framed in the year –

Answer: 1977

13. What is the maximum sum insured permitted under parcel insurance?

Answer: ₹50,000

14. For distance >1,500 km, the delivery time standard for parcel is –

Answer: 48 hours

15. The payload capacity of a BCACBM wagon used in PCE is –

Answer: 23 tonnes

16. Which Railway zone earned the highest parcel revenue in FY 2023-24?

Answer: Northern Railway

17. The congestion surcharge (CCA) on parcel traffic can be levied up to –

Answer: 15 %


Last revision: 15 June 2024 (Railway Board circular No. TC-II/2014/2024/01-Parcel Policy)