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Commercialpedia Indian Railways commercial circulars and policies

Important freight measures September 2021

· 2021-03-31
Currency not verifiedCircularfreight
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Date2021-03-31
TypeCorrigendum
Topicfreight
DirectorateTraffic Commercial
CurrencyCurrency not verified

Summary

(Corrigendum No.3 to Rates Master Circular/E-Payment/2014/1) and (Rates Master Circular/E-

Text of the circular

Important Policy Measures for Freight Customers 
 
To promote economic activities in the country during covid pandemic, Indian Railways has taken a 
number of freight policy measures. More relaxations have been provided to the customers by slew of 
incentives announced by Indian Railways. These incentives are expected to boost the economy of 
the country. Details of the initiatives duly referring circular/policy letter are given below. For details 
of the initiatives, customers may visit the Traffic Commercial Directorate of at Indian Railways 
website (www.indianrailways.gov.in). 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.   
 
A. 
FREIGHT INCENTIVE SCHEMES: 
 
i) 
Automatic Freight Rebate Scheme for traffic loaded in Traditional Empty Flow 
Directions (TEFD)- Railway identifies the routes where it operates a certain number of empty 
wagons annually. In a endeavor to convert these empty movements to loaded, it offers discounted 
freight in these empty flow routes, i.e. 15% to 20% discount on applicable NTR. Discount is granted 
automatically through system on Railway Receipts itself, i.e., no action to be taken by customer. 
Details of notified routes and terms & conditions are as per the circular.  
(Rates Circular No.13 of 2021 dated 31.03.2021.) 
 
ii) 
Long Term Traffic Contract (LTTC) is a policy which provides freight stability to its 
customer in the current year of the agreement. It also offers rebate in freight based on incremental 
growth in Gross Freight Revenue GFR as well as for retention of traffic volumes. Freight rebate is 
also available for retention of GFR in each year of the agreement period. Customers are required to 
apply for and sign contracts with Zonal Railways to avail this scheme.  
(Rates Circular No.14 of 2017) 
 
iii) 
Busy Season Charge which was levied during October-June (with some exceptions) @15% 
on all goods traffic has been withdrawn from 01.10.2019 for all traffic; except Iron Ore and POL 
traffic. This has provided a direct huge reduction in freight charges.  
(Corrigendum No.1 dt.12.09.2019 to Rates Master Circular/Dynamic Pricing Policy/2015/0) 
 
iv) 
Revised Round Trip Tariff (RTT) policy has been implemented from 24.10.2020 and will 
remain valid upto 23.10.2021.  Under this policy, freight discount is granted to traffic if customer 
offers to book traffic in onwards as well as return direction. The return traffic under this traffic is 
charged at lower of the two classes of onward vis a vis return traffic, effectively both onwards at 
return traffic/commodities are charged at lower class among these, subject to terms and conditions 
applicable,except for coal and coke for which maximum discount is capped at 10%. Rail users 
desirous of availing incentives under RTT policy shall be required to apply to Zonal Railway. 
(Rates Circular No.27 of 2020) 
 
v) 
Incentive to Fly Ash: 40% discount in freight is granted to fly ash traffic booked in Open 
Stock; both in bagged condition as well as bulk/loose condition. Fly ash loaded in flat wagons is also 
granted 40% concession, if loaded in bagged condition. Fly ash in covered wagons in bagged 
condition is now charged at Class LR1. 
(Rates Circular No.09 of 2020 and its corrigendum No.1 dt.03.08.2020)

vi) 
Short lead concession has been re-introduced from 01.07.2020 under which discount in 
freight at the rate of 50%, 25% and 10% is granted to the traffic booked upto 0-50KM, 51-75KM 
and 76-90 KM respectively except Coal & Coke and Iron ore traffic.Further, Zonal Railways have 
been empowered to get into long term contracts with customers for short lead traffic. 
(Rates Circular No.16 of 2020 and its corrigendum No.1 dt.05.08.2020) 
 
vii)  Graded concession in charging of freigh

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