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Guidelines for implementing “Station To Station” Rates (STS)

Rates Circular No. 26 of 2016
Historical — likely supersededCircularconcessions
Historical — likely superseded. This circular predates 2020 and has probably been replaced. Treat it as a record of what the rule was, not what it is. The official Railway Board PDF always prevails over anything shown here.

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Circular numberRates Circular No. 26 of 2016
File numberNo. TCR/1618/2016/02
TypeCommercial Circular
Topicconcessions
DirectorateTraffic Commercial
CurrencyHistorical — likely superseded

Summary

Guidelines for implementing “Station To Station” Rates (STS) This concession shall be subject to station benchmark NTKM being

Text of the circular

Rates Circular No. 26 of a CRs Circular No. 26 of 2016

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

No. TCR/1618/2016/02 New Delhi, dated:2.9 .09.2016

The General Managers
All Indian Railways

1.0

2.0

2.1

2.2

2.3
2.4

Sub: Guidelines for implementing “Station To Station” Rates (STS)

Ref: Instruction/Provisions contained in  Board’s_ letter No.
2014/TC(CR)/204/11 dated 04.11.2015 and 18.11.2015 & in Traffic
Commercial Code.

In terms of Section 32(a) of the Railways Act, 1989 railway administration
has been empowered to quote Station to Station Rates in respect of
carriage of various commodities. In this regard, Ministry of Railways have
issued guidelines from time to time to the zonal railways. Since the rail
share of freight is gradually declining over the years, various suggestions
have been received from the zonal railways to garner more traffic from
road and other modes. Board have considered the same and in
supersession of all existing instructions/provisions on Station to Station
Rates (STS), comprehensive guidelines are hereby issued in accordance
with section 32(a) of the Railway Act 1989. However, in special cases
Zonal Railways may frame their own guidelines to attract traffic.

Applicability

Concession in freight rates under STS shall be applicable to a specific
stream of traffic of a particular commodity for movement between a
specific pair of originating and destination stations/points. However, Zonal
Railways shall ensure that grant of concession under STS between. any
O-D pair should result in the overall increase in the NTKM of that
station/cluster for that commodity rather than diversion of existing traffic
from the adjoining areas.

The reference to benchmark/total NTKM for the station as a whole or for
that particular commodity/rail user refers to such benchmark/total NTKM
for that particular O-D pairs.

Existing as well as new traffic shall be eligible for concession under STS.
“New traffic” is defined as under:-

(i) Traffic offered to rail by a new rail user subject to crossing the
benchmark NTKM for that commodity and _ that particular
station/cluster; or

(ii) _New commodity offered by an existing/new rail user; or

(iii) Commodity offered for a new O-D pair of stations/clusters by an
existing rail user (subject to total NTKM of that commodity from that
particular station/cluster crossing the benchmark NTKMs for that
particular commodity)

[dolar Ye Page 1 of 7

Rates Circular No. 26 of 2016
2.5 It should be ensured that the NTKM/freight earnings for a commodity,
from a station/siding/terminal/customer after grant of concession under
STS should normally increase. The Zonal Railways should analyse the
trend of traffic from a particular station and ensure that the party applying
for STS should not be able to take concession in the name of new traffic

either by changing the loading point or name of the party.

For example: if the traffic from a particular station ‘A’ is shifted by
the same customer to station ‘B’ (within 150 km) it should not be
treated as new traffic. Similarly, if for a particular commodity or
stream of traffic, with same O-D pair, the total NTKMs for a
particular commodity remains the same but customer ‘A’ is
replaced by customer ‘B’, then it cannot be taken as new or
incremental traffic. Concession can be granted only when the
total NTKM of that commodity from that particular station crosses
the benchmark NTKM for that particular station. In other words,
concession to a particular individual/ commodity/ stream of traffic
would be granted when not only the individual benchmark NTKM
for that particular individual has been crossed but also the overall
benchmark NTKM for that stream of traffic or commodity has
been crossed from that particular station. This would be
regulated through a suitable software modification by CRIS.

2.6 Concession under STS shall be applicable to cluster of stations also. The
cluster of stations is def

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