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

Question:01 What is the minimum chargeable weight for a railway parcel as per the 2023 amendment?

A) 5 kg

B) 8 kg

C) 10 kg

D) 12 kg

Show Answer

Correct Answer: C

Explanation: The 2023 amendment fixed the minimum chargeable weight for any railway parcel at 10 kg, ensuring uniform pricing for small consignments.

Question:02 Which of the following vans is authorised to carry Class-1 explosives?

A) BOX (Box wagon)

B) CRT (Covered rail truck)

C) EXV (Explosive van)

D) BTP (Bottom discharge tank wagon)

Show Answer

Correct Answer: C

Explanation: EXV (Explosive van) is the only wagon type specifically designed and authorised for the safe transport of Class-1 explosives.

Question:03 The Parcel Management System (PMS) was launched on –

A) 15th August 2019

B) 1st October 2020

C) 26th January 2021

D) 1st April 2018

Show Answer

Correct Answer: B

Explanation: Indian Railways introduced the Parcel Management System (PMS) on 1st October 2020 to digitize and streamline parcel booking, tracking and billing across the network.

Question:04 What is the maximum speed rating of a VP van?

A) 110 km/h
B) 120 km/h
C) 130 km/h
D) 140 km/h

Show Answer

Correct Answer: C

Explanation: A VP (Vista Dome) van is designed for a maximum operational speed of 130 km/h as per Indian Railways’ rolling-stock specifications.

Question:05 The liability of Railways for an insured parcel is –

A) 5 times the freight subject to ₹250/kg max

B) 10 times the freight subject to ₹500/kg max

C) 15 times the freight subject to ₹750/kg max

D) 20 times the freight subject to ₹1,000/kg max

Show Answer

Correct Answer: B

Explanation: As per Railway rules, compensation for an insured parcel is capped at 10 times the freight charged, with an upper limit of ₹500 per kilogram.

Question:06 Which station has been declared Indian Railways’ first 100 % mechanised parcel handling terminal?

A) Krishnarajapuram (Bengaluru)

B) Whitefield (Bengaluru)

C) Yesvantpur (Bengaluru)

D) Bengaluru Cantonment

Show Answer

Correct Answer: B

Explanation: Whitefield (Bengaluru) station was officially declared the first 100 % mechanised parcel handling terminal on Indian Railways, featuring automated sorting, conveying and stacking systems for speedy, damage-free parcel traffic.

Question:07 Under the OSOP freight-rebate scheme, what percentage rebate is granted on the total freight charge?

A) 20 %
B) 30 %
C) 40 %
D) 50 %

Show Answer

Correct Answer: C

Explanation: The One-Stop-Overseas-Parcel (OSOP) scheme offers a 40 % rebate on freight charges to incentivise rail-based export logistics.

Question:08 [As on 31-03-2024, how many dedicated Parcel Cargo Express (PCE) rakes were in operation across Indian Railways?]

A) 12

B) 15

C) 18

D) 21

Show Answer

Correct Answer: C

Explanation: Indian Railways had 18 dedicated Parcel Cargo Express (PCE) rakes operational as of 31-03-2024, facilitating time-sensitive parcel movement on priority paths.

Question:09 The claim for loss of a railway parcel must be filed within –

A) 3 months
B) 6 months
C) 9 months
D) 12 months

Show Answer Correct Answer: B
Explanation: As per the Indian Railways (Parcel) Rules, any claim for loss of a parcel must be lodged within 6 months from the date of booking.

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

A) 3 %

B) 5 %

C) 12 %

D) 18 %

Show Answer

Correct Answer: B

Explanation: With effect from 15-08-2023, parcel freight is taxed at a concessional GST rate of 5 %.

Question:11 The RFID sealing of parcels was made mandatory from –

A) 1st January 2023

B) 1st April 2024

C) 1st July 2022

D) 1st October 2025

Show Answer

Correct Answer: B

Explanation: Indian Railways mandated RFID sealing of parcels with effect from 1st April 2024 to enhance security and tracking.

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

A) 1965

B) 1972

C) 1977

D) 1981

Show Answer

Correct Answer: C

Explanation: The Indian Railways framed its first dedicated Parcel Rules in 1977 to standardise the booking, handling and tariff structure for parcel traffic across the network.

Question:13 What is the maximum sum insured permitted under parcel insurance in 2026?

A) ₹25,000
B) ₹50,000
C) ₹75,000
D) ₹1,00,000

Show Answer

Correct Answer: B

Explanation: As per 2026 Railway Parcel Insurance rules, the upper limit of sum insured for any single parcel is capped at ₹50,000.

Question:14 For a parcel consignment booked over a distance exceeding 1,500 km, the standard delivery time prescribed by Indian Railways in 2026 is

A) 24 hours

B) 36 hours

C) 48 hours

D) 72 hours

Show Answer

Correct Answer: C

Explanation: As per the 2026 parcel tariff rules, parcels sent for distances greater than 1,500 km are targeted for delivery within 48 hours of booking.

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

A) 20 tonnes

B) 21 tonnes

C) 23 tonnes

D) 25 tonnes

Show Answer

Correct Answer: C

Explanation: The BCACBM wagon, specifically designed for parcel-carrying express (PCE) services, is rated for a maximum payload of 23 tonnes.

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

A) Eastern Railway
B) Western Railway
C) Northern Railway
D) Central Railway

Show Answer

Correct Answer: C

Explanation: Northern Railway topped the parcel revenue chart in FY 2023-24, leveraging its dense network and proximity to high-demand cargo hubs like Delhi.

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

A) 10 %

B) 15 %

C) 20 %

D) 25 %

Show Answer

Correct Answer: B

Explanation: As per 2026 Indian Railway Commercial Manual, the maximum congestion surcharge (CCA) permissible on parcel traffic is 15 %.


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