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| Date | 2025-04-30 |
|---|---|
| Type | Commercial Circular |
| Topic | freight |
| Directorate | Traffic Commercial |
Important Policy Measures for Freight Customers_Rates Branch (Commercial Dte)/Railway Board
Important Policy Measures for Freight Customers_Rates Branch (Commercial Dte)/Railway Board 1 Important Policy Measures for Freight Customers (Indicating Initiatives taken during December 2024 – March 2025) Ministry of Railways has taken a number of freight policy measures to promote movement of goods traffic through railways. List of initiatives duly referring policy circular are given below. For full details of the initiatives, customers may visit the webpage of Traffic Commercial Directorate on Indian Railway’s website. Customers may get in touch with Sr. Divisional Commercial Manager at Division level or Chief Commercial Manager(FM) at Zonal Railway level for any freight traffic related query. Customers may also visit the website of FOIS (www.fois.indianrail.gov.in) to know more about freight traffic and policies. They can get all requisite information e.g. freight class and rate for all commodities; position of indent/demand for each station; outstanding indents, shortest/popular routes, terminal handling facilities and freight calculator. Customers can track and trace their rakes while logging their accounts in FOIS. 1.0 FREIGHT INCENTIVE SCHEME With a view to offer a competitive Freight Rates to customers and, thereby, attracting more traffic to rail, a number of Freight Incentive Schemes have been launched by Indian Railways namely Liberalized Automatic Freight Rebate Scheme for traffic loaded in Traditional Empty Flow direction (TEFD), Merry Go Round (MGR), Concession on short lead traffic, Station to Station (STS) rates, etc. TEFD provides automatic rebate from the computerized FOIS system shall become available to customers offering traffic in inter-zonal/intra-zonal traditional empty flow direction subject to fulfillment of certain terms and conditions stipulated in this policy (refer Rates Circular No.9 of 2024 and amendments thereto). Under MGR, concession is granted on movement of coal traffic in closed circuit (Rates Circular No.7 of 2016 and amendments thereto).Under Short lead concession, graded concession is granted on movement of traffic upto 100 Kms (Rates Circular No.20 of 2016 and amendments thereto).Under STS, concession is granted on incremental traffic over benchmark NTKM(Rates Circular No.15 of 2022 and amendments thereto) Link of the Policy Circulars: Freight Incentive Schemes Initiatives taken during April, 2025 Guidelines regarding Operation of Merry Go Round(MGR) system have been extended for a period of one year i.e. upto 30.04.2025 (Rates Circular No.07 of 2025) Important Policy Measures for Freight Customers_Rates Branch (Commercial Dte)/Railway Board 2 2.0 TRANSPORTATION PRODUCT Full rake movement is beneficial for Railways as well as Customers. Trainload Rate Benefit is offered to customer for full rake movement. This rate is more or less 10% lower than the rate applicable to piecemeal/less than full rake movement. Guidelines have been prescribed for different transportation products such as Block Rake, Mini Rake, Two Point/Multi Point combinations, Cargo Aggregator Transportation Product. Block Rake is train carrying notified number of wagons for a single destination. Mini Rake is a short rake composed of lesser number of wagons than specified for a block rake. Two/Multi-point rakes are trains carrying wagons destined to two or more than two destinations respectively. Cargo Transportation Product facilitates cargo aggregation and expands the commodity basked of IR. Link of the Policy Circulars: Policy Guidelines-Transportation Products:Block Rakes/Mini Rakes/Two Point Combinations etc. Rates Circular No.3 of 2024 3.0 CLASSIFICATION OF COMMODITY Classification of commodity for the purpose of charging freight is one of important characteristics of freight policy. Though cost of transportation of a commodity by rail is more or less same, but IR is charging different commodities
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