Set of Concession and Incentive Schemes for Freight Traffic Boost

Set of Concession and Incentive Schemes for Freight Traffic Boost

No.177/2020-21

14-08-2020

Secunderabad

Railways offer Concessions to enhance Freight Traffic

Railways in its continuous effort to serve the freight customers has been taking several steps to improve the freight traffic. In this direction, As advised by the Rail Ministry, South Central Railway has already set up Business Development Units (BDUs) at both Zonal and Divisional levels. The committee members of these BDUs are in regular touch with freight customers, trade & industry to work out various ways and means to improvise the freight loading. Now, with a view to further increase the freight loading, Railway Board has announced a set of concession and incentive schemes for freight traffic.

The freight concessions that are offered to customers include the following -

a) Concessions in freight for Short Lead traffic for all commodities except Coal, Coke and Iron ore

Freight concession will be given o­n Normal Tariff Rate (NTR) for the freight traffic offered

· for distance up to 50 Kms - 50%

· for distance between 51 - 75 Kms - 25%

· for distance between 76 - 90 Kms - 10%

The main objective of this concession is to attract the short lead traffic by Rail.

b) Concessions in freight for Long Lead traffic for Coal & Coke

For the freight traffic offered for a distance of more than 1400 Kms, freight concession of 20% is given o­n Normal Tariff Rate (NTR) with floor limit not less than NTR for 1400 Kms.

c) Concessions in freight for Long Lead traffic for Iron & steel

For the freight traffic offered for a distance of more than 1600 Kms, freight concession of 20% is given o­n Normal Tariff Rate (NTR) with floor limit not less than NTR for 1600 Kms.

d) Concessions in freight for Long Lead traffic for Iron Ore

· For the freight traffic offered for a distance between 701- 1500 Kms, freight concession of 15% is given o­n Normal Tariff Rate (NTR) with floor limit not less than NTR for 700 Kms.

· For the freight traffic offered for a distance more than 1500 Kms, freight concession of 20% is given o­n Normal Tariff Rate (NTR) with floor limit not less than NTR for 700 Kms.

e) Incentive Schemes for Loading of Fly Ash

Fly Ash in bagged or loose/bulk condition when loaded in open wagons (BOXN type), 40% concession is applicable o­n NTR. Fly ash in bagged condition when loaded in flat wagons (BRN type), a freight concession of 40% is applicable o­n NTR, whereas, if loaded in covered wagons will be charged at NTR of LR1 class.

No other concessions shall be applicable when the consignment is booked under these Policies and schemes. Concessions offered in Long Lead are applicable for Train Load o­nly. The concessions specified above shall remain valid up to June 30, 2021, while incentive scheme for Fly Ash shall be valid until further advice.

Shri Gajanan Mallya, General Manger, SCR has stated that Rail Ministry has been introducing several concession and incentive schemes to cater various segments of freight customers with different volumes and lead. He advised all the freight customers to avail these benefits to improve their business model and associate with Railways, which will be win-win situation for both.

Source:South Central Railway