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| Circular number | No.TC-I/2018/104/2 |
|---|---|
| Date | 2019-03-29 |
| Type | Corrigendum |
| Topic | freight |
Guidelines regarding Freight Advance Scheme 4.5.4 The freight amount in the RRs shall continue to be debited to freight advance
Rates Circular No. l of
2020
m«r ,t,HcfiF( (GOVERNMENT OF INDIA)
tt>rA:iiit"ill (MINISTRY OF RAILWAYS)
~~(RAILWAY BOARD)
No.TC-I/2018/104/2 Pt.C
New Delhi, dt. lY.01.2020
General Manager
All Zonal Railways
Sub: Guidelines regarding Freight Advance Scheme
Ref: Rates Circular No.5 of 2019, its corrigendum dt.29.03.2019 & addendum dt.04.12.2019
In supersession of above mentioned circular and its corrigendum/addendum, the revised
guidelines regarding Freight Advance Scheme are given below-
1. Introduction/Brief description of scheme :
The Scheme provides a facility to major freight customers to avail tariff certainty against
payment of advance freight to Indian Railways. Customers who agree to pay a freight
advance in the last quarter of a financial year to cover their estimated freight upto the end
of next financial year· will have the benefit of fixed base freight rate and class of the
commodity upto the end of the next financial year; subject to terms and conditions of the
scheme, as below.
2. Eligibility:
2.1
The customer should have given minimum annual freight revenue of={' 500 crore in
previous calendar year.
2.2
The customer should be E-payment customer under the extant policy for all freight
payments.
2.3
Railway Receipts issued in favour of customer or applicant as one paying the freight
shall be considered for determining eligibility for offering tariff certainty and for
payment from advance amount.
~-
Page 1 of 8
Rates Circular No. l of
2020
3. Validity:
Customers can approach the Railways from 1st January to 31st March of a calendar year to
offer freight advance upto 31st March of the following financial year. The agreements
under Freight Advance scheme will normally be valid and effective from l " April to 31st
March of Financial Year only. However, on customer's request, agreements may
commence anywhere between January to March of a calendar year and be valid till 31st
March of subsequent calendar year; i.e. agreements may be valid for a period of
maximum fifteen months. After expiry or termination of agreement as per para 4.6 of this
policy, customers may apply for fresh agreement, and the base fare and class of
commodities as prevalent on date of commencement of new agreement shall be
applicable.
4. Terms and Conditions:
4.1 Amount and installments of Freight Advance-
4.1.1
The customer shall agree to pay Railways a mirumum of ~ 500,00,00,000/-
(Rupees five-hundred crore only) as Freight Advance (inclusive of GST and other
taxes applicable).
4.1.2 The freight advance committed can be either in one or maximum two
installments; each of minimum forty percent of total advance committed. Eligible
customers may opt to offer advance freight amount less than their total estimated
freight for the full agreement period (subject to minimum of~ 500 er), however
fixed base rate and class of commodities will be applicable only till exhaustion of
freight advance given or termination of agreement as per para 4.6 of this policy,
whichever is earlier.
4.1.3 The agreements shall remain valid till exhaustion of freight advance amount or till
31st March of the same financial year or till termination of agreement, whichever
is earlier. That is, the base freight rate and class of the commodity for the
customer shall remain fixed, as prevalent at time of commencement of agreement,
up to 31st March of same financial year or till exhaustion of freight advance
amount or till termination of agreement, whichever is earlier. However, in case of
customers whose agreements commence during last quarter of a financial year i.e.
before l " April, "31st March" would mean 31st March of subsequent Financial
Year.
Page 2 of 8
Rates Circular No.1 of
2020
4.1.4 The customer shall pay the first installment of Freight Advance to Nodal Railway
before the date of commencement of the agreement. The agreement shall be
effected or operationalised in Terminal Management System (TMS) of the
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