LIBERALISED STATION TO STATION SPECIAL FREIGHT RATES POLICY

LIBERALISED STATION TO STATION SPECIAL FREIGHT RATES POLICY

· Section 32 of the Railways Act, 1989 empowers railway administration to quote Station to Station Rate (STS) in respect of carriage of various commodities. 

· Railway Board used to issue guidelines to Zonal Railways for implementation of STS rates. Last guidelines on this subject were issued by Board in 2002, which were in operation till 2006. In November 2015, Zonal Railways were advised to exercise power vested with them to quote STS rates as per the Railways Act, 1989.

· On request from Zonal Railways and to enable them to garner more traffic from road and other modes,   broad guidelines are being issued to Zonal Railways for finalising STS rates.

· Salient features of the proposed policy are as under:

·Existing as well as new traffic shall be eligible.

·Concession shall be granted up to a maximum of 30% on the incremental traffic over and above the benchmark NTKM. Benchmark NTKM is defined as average NTKMs of corresponding periods of previous 24 months.

·Concession shall be in the form of percentage discount over the Normal Tariff Rate (NTR). It should be ensured that the concessional freight should not be less than the NTR of Class 100.

·Concession shall be admissible to Block rake, two/multi point rake, Mini Rake etc.

· Concession may be granted for retention of traffic also up to maximum of 15%. In case of container traffic, STS discount upto maximum of 15% shall be given to commodities charged at Container Class Rate (CCR).  

·STS scheme will be applicable for all terminals namely goods sheds, sidings, ports, CRTs, PFTOs etc. 

·To avail STS, Rail users shall be required to apply to the DRM with details, who shall forward the same for approval of GM through CCM, COM and FA&CAO.  If Railway administration approves grant of concession under STS, an agreement shall be executed between Railway and customer.

·The agreement shall be done for a maximum period of three years at a time and for not less than one year.  Any change in freight rate (excluding imposition of any surcharge) shall not be applicable on the customer during the currency of the agreement or for one year, whichever is less. 

·Commodities excluded from STS are - 

o   All commodities with classification below Class-100.

o   All commodities under Main Commodity Head “Coal & Coke”

o   Iron ore (all types)

o   Military traffic, POL and RMC

·Targeted customer:  Food grain, Cement, Clinker, Dolomite, Limestone, Steel companies, Fly ash, etc.

·  Expected additional loading: 10 million tonne per annum.