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Methodology for calculation of freight rebate for High Capacity Wagons (HCW) under Special Freight Train Operator (SFTO) Scheme

Freight Marketing Circular No. 12 of 2019
Circularfreight

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Circular numberFreight Marketing Circular No. 12 of 2019
File numberNo. 2016/TC(FM)/04/04-Vol.(2)
TypeRates Master Circular
Topicfreight
DirectorateTraffic Commercial (Freight Marketing)
Official PDFindianrailways.gov.in

Summary

Methodology for calculation of freight rebate for High Capacity Wagons (HCW) under Special Freight Train Operator (SFTO) Scheme Quantum of Loading Additional Freight Rebate Additional Freight Rebate

Text of the circular

FREIGHT MARKETING CIRCULAR No.12 of 2019

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

No. 2016/TC(FM)/04/04-Vol.(2) रेल भवन, नई दिल्‍ली-110001
Rail Bhavan, New Delhi - 110 001, dated\405.2019

General Managers
All Indian Railways.

(Addendum No. 1 to SFTO Master Circular)

Sub : Methodology for calculation of freight rebate for High Capacity Wagons
(HCW) under Special Freight Train Operator (SFTO) Scheme.
Ref : Freight Marketing Master Circular /SFTO/2018/0 dated 02.07.2018.

न ने के के के

Attention is drawn to para 10.3. of SFTO policy issued vide FM Master
Circular/SFTO/2018/0 wherein it has been stated that “In case of High Capacity Wagons, if
inducted by the operator, resulting in increase in throughput per train beyond 10%, an additional
freight rebate of 2% shall be granted on base freight for each increase of 10% in throughput per
train subject to a maximum rebate of 10% for the additional tonnage carried for a period of
twenty years. The additional freight rebate will be applicable only on the incremental
throughput.”

Till recent past only Special Purpose Wagons (Non-High Capacity) wagons were plying
under SFTO. However, HCW are now being inducted in the SFTO scheme and hence it becomes
necessary that additional freight rebate due in terms of para 10.3 of the policy is calculated correctly
in a unified manner by all railways.

The issue has been examined in Board’s office. Accordingly, the following methodology
shall be adopted for calculation of additional freight rebate in HCW moving under SFTO:

[ Quantum of Loading | Additional Rebate
vis-a-vis Similar Type of Wagon (over the standard Rebate of 12%)
| Upto 100% [ov
First increment of 10% NIL |
(0% to <10%) |
Second increment of 10% 2% of Base Freight
(>10% to <20%) (on loading above 10%)
Third increment of 10% 4% of Base Freight
| (>20% to <30%) (on loading above 20%)
Fourth increment of 10% 6% of Base Freight |
(>30% to <40%) (on loading above 30%)
Fifth increment of 10% 8% of Base Freight |
(>40% to <50%) | (on loading above 40%)
10% of Base Freight
>50% 7 (on loading above 50%) |
Page | of 3 है
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FREIGHT MARKETING CIRCULAR No.12 of 2019

Sample Calculation (for BFNSM 22.9T wagons) le Calculation (for BENSM 22.9T wagons):

To further elaborate the calculation methodology, sample calculations for BFNSM 22.9T
wagons, from TSLJ to DPCB (distance 131 km), is given below:

Wagon Type | Std Rake Size PCC on CC+8 route Chargeable Weight
BFNSM 22.9T 58 69T 4,002T
| 8र९...... | 43 66T 2,838T
Incremental Tonnage in comparison to BRN wagons 1,164 T
6 P 8 (i.e. +41%)
Commodity : Steel coil
Class : 165
Rate per Tonne for 131 kms ; %310.20
Base Freight : 212,41,420.40
Freight Rebate (@12% of Base Freight) —: %1,48,970.45
Quantum of Loading Additional Freight Rebate Additional Freight Rebate
(Chargeable Weight for BRN: 2,838 T) (in %) _| (in %)
Initial 2,838 T (equal to BRN [ NIL | 000...
On attaining first increment of 10% additional atm
loading on 2838 T (0% to <10%) NIL 0.00

(up to 2,838 + 283.8 = 3,121.8 T)
On attaining second increment of 10%
additional loading on 3,121.8 T (>10% to <20%) 2% - on Base Freight of 283.8 T 283.8 x 310.2 x 2% = 1,760.70
up to 3,121.8 + 283.8 = 3,405.6 T
On attaining third increment of 10% additional
loading on 3405.6 T (>20% to <30%) 4% —on Base Freight of 283.8T — |283.8 x 310.2 x 4% = 3,521.39
up to 3,405.6 + 283.8 = 3,689.4 T
On attaining fourth increment of 10% additional
loading on 3405.6 T (>30% to <40%) 6% — on Base Freight of 283.8T  |283.8 x 310.2 x 6% = 5,282.09
up to 3,689.4 + 283.8 = 3,973.2 T
On additional loading on 3973.2 T (>40%) Pe — on Base Freight of excess 28.8 x 310.2 x 8% = 714.70

up to 4,002 T ding (i.e. 4,002-3,973.2 = 28.8 T
TOTAL 11,278.88

Total Rebate (for HCW ‘BFNSM 22.9T”) = 1,48,970.45 + 11,278.88 = %1,60,249.33 only

This issues with the concurrence of Finance Directorate of Ministry of Railways. | )
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(Mudit Chand"

Director Freig

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