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Discount Scheme for Bulk booking of Parcel space in advance

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Discount scheme for bulk booking of Parcel space in advance space (in trains where Parcel space has already been leased) at the highest lease rates for that

Text of the circular

FREIGHT MARKETING CIRCULAR NO. 03 OF 2021

भारत सरकार GOVERNMENT OF INDIA रेल मंत्रालय MINISTRY OF RAILWAYS ( रेलवे बोर्ड RAILWAY BOARD )

No. 2020/TC(FM)/11/29 New Delhi, Dated 02.02.2021

The General Managers, All Zonal Railways.

Sub: Discount scheme for bulk booking of Parcel space in advance.

Ref: Board’s letters of even no. dated 11.09.2020, 21.09.2020, and 20.11.2020.

1. Instructions for Advance Booking of Parcel space for 120 days were issued by Railway Board, vide letter of even number dated 11.09.2020. Thereafter, vide letter of even number dated 20.11.2020, directions were issued regarding charging of Advance Booking of Parcel space (in trains where Parcel space has already been leased) at the highest lease rates for that train.

2. However, in order to promote Advance Booking in larger quantities, it has been decided that a discount will be granted if a party decides to book bulk Parcel space in advance on end-to- end basis. The discount will become applicable if the space being booked (in a single trip) is more than the leased Parcel space under the highest lease rates. The quantum of discount shall be as under:

Advance Booking space Discount upto 100% of the leased Parcel space = NIL (No discount) more than 100%, upto 300% 25%, for space above 100% of leased Parcel space

more than 300% 50%, for space above 300% of leased Parcel space

3. However, the applicable rates for Advance Booking shall not be less than the base freight rate (*S’, लि, *R’, or ‘R+25%’ scale — as per categorization of train) for any of the slabs mentioned above.

4. The methodology for calculation of rates for Advance Booking has been explained in the following illustration:

FREIGHT MARKETING CIRCULAR NO. 03 OF 2021

Illustration

Assuming a train under ‘R-scale’ where base rates of Parcel (for end-to-end distance) is Rs 4,000/- per Tonne:

Scenario 1:

Highest lease rates Rs 28,000/- for 04 Tonnes, i.e. Rs 7,000/- per Tonne If the proposal is for Advance Booking of 10 Tonnes of Parcel space in a single trip, the charging of the same shall be as under:

For0to4 Tonnes |@ _ Highest lease | Rs 7,000/- per T rates = Rs 28,000/- @ 25% discount (0.75 x Rs 7,000/-, i.e. Rs 5,250/-) per T = Rs 31,500/-

Total for 10 Tonnes = Rs 59,500/-

Scenario 2:

For 4 to 10 Tonnes

Highest lease rates Rs.28,000/- for 04 Tonnes, 1.6. Rs 7,000/- per Tonne

If the proposal is for Advance Booking of 23 Tonnes of Parcel space in a single trip, the charging for the same shall be as under:

For0to4 Tonnes |@_ Highest lease| Rs 7,000/- per T

rates = Rs 28,000/-

@ 25% discount (0.75 x Rs 7,000/-, i.e. Rs 5,250/-) per T

For 4 to 12 Tonnes

= Rs 42,000/- For 12 to 23 | @ Base rate* Rs 4,000/- per T Tonnes . =Rs_ 44,000/-

Total for 23 Tonnes = Rs 1,14,000/-

* Since the rates with 50% discount are Rs 3,500/- per Tonne, which are less than the Base Rates

(i.e. Rs 4,000/- per Tonne) — hence Base rates will be applicable for this slab.

Scenario 3:

Highest lease rates Rs 44,000/- for 04 Tonnes, i.e. Rs 11,000/- per Tonne If the proposal is for Advance Booking of 23 Tonnes of Parcel space in a single trip, the charging for the same shall be as under:

For0to4 Tonnes |@ _ Highest lease} Rs 11,000/- per T rates = Rs 44,000/- For 4to 12 Tonnes | @ 25% discount (0.75 x Rs 11,000/-, i.e. Rs 8,250/-) per T

= Rs 66,000/- For 12 to 23|@50% discount (0.50 x Rs 11,000/-, i.e. Rs 5,500/-) per T Tonnes

= Rs 60,500/- Total for 23 Tonnes = Rs 1,70,500/- ry Mee,

FREIGHT MARKETING CIRCULAR NO. 03 OF 2021

5. These instructions will be applicable from the Advance Booking in train services originating on or after 05" February 2021, and will remain applicable till 31* July 2021.

6. This issues in concurrence of Finance Directorate of Ministry of Railways.

7. Please acknowledge receipt of this letter.

ene

(Suhani Mishra) Director Freight Marketing

No. 2020/TC(FM)/11/29 New Delhi, Dated 02.02.2021

Copy forwarded to:

1. The Deputy Comptroller & Auditor General of India (Railway

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