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Commercialpedia Indian Railways commercial circulars and policies

Important Policy Measures for Freight Customers

· 2021-03-31
Circularfreight

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Date2021-03-31
TypeCorrigendum
Topicfreight
DirectorateTraffic Commercial

Summary

(Rates Circular No.13 of 2021 dated 31.03.2021 and Corrigendum no.5 to Rates Circular

Text of the circular

Important Policy Measures for Freight Customers 
(Updated upto 31st July, 2024) 
 
To promote movement of goods traffic through railways, Ministry of Railways have 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 Indian Railway’s 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 Rates Circular no.13 of 2021 and further extended vide 
Corrigendum no.5 to Rates Circular no.13 of 2021.  
(Rates Circular No.13 of 2021 dated 31.03.2021  and Corrigendum no.5 to Rates Circular 
no.13 of 2021.) 
These Instructions regarding Liberalised Automatic Freight Rebate Scheme for traffic loaded 
in Traditional Empty Flow Directions  (TEFD) have been now extended w.e.f 01.04.2023 to 
31.03.2024.(TCR/1078/2019/2/TEFD/3318144 Rates Circular No.7 of 2023 dated 
31.03.2023). 
Further certain additional empty flow streams have also been added in extant TEFD scheme 
w.e.f. 05.05.2023 till 31.03.2023.  
(Corrigendum no.01 to Rates Circular no.7 of 2023 dated 04.05.2023) 
Further certain additional empty flow streams have also been added in extant TEFD scheme 
w.e.f. 02.08.2023 till 31.03.2024.  
(Corrigendum no.02 to Rates Circular no.7 of 2023 dated 31.07.2023.) 
Further certain additional empty flow streams have also been added in extant TEFD scheme 
w.e.f. 26.12.2023.  
(Corrigendum no.03 to Rates Circular no.7 of 2023 dated 26.12.2023.) 
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) 
 
However, at present LTTC policy is on review and Zones has advised that no new LTTC 
contract shall be executed on zonal railways w.e.f. 18.12.2020 
(Letter No.TCR/1078/2020/LTTC-Review/3336979 dated 18.12.2020) 
 
 
 
iii. 
Busy Season Charge was withdrawn from 01.10.2019 for all traffic; except Iron Ore and 
POL traffic. Now Busy Season Charge is leviable as it was in force prior to 01.10.2019 
i.e. it is leviable on transportation of all commodities except Coal & Coke, Container 
Traffic and Automobile Traffic moved in NMG, BCACM, BCCNR & BCACBM wagons 
w.e.f. 01.10.2022. 
(Corrigendum No.4 dt.27.09.2022 to Rates Master Circular/Dynamic Pricing Policy/2015/0 
 
Policy Guidelines on levy of Busy Season Charge(BSC) during the period from 1st April to 
30th June and 1st October to 31st March has been reviewed and the period of levy of BSC has 
been extended during the month of July 2023 also. 
(Corrigendum No.5 dt.30.06.2023 to 

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