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| Circular number | Rates Circular No. 26 of 2016 |
|---|---|
| File number | No. TCR/1618/2016/02 |
| Type | Commercial Circular |
| Topic | concessions |
| Directorate | Traffic Commercial |
| Currency | Historical — likely superseded |
Guidelines for implementing “Station To Station” Rates (STS) This concession shall be subject to station benchmark NTKM being
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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