Freight Regulations and Incentives Quiz
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Questions and Answers

What is the maximum weight allowed for standard bags when loading commodities?

  • 50 kg
  • 100 kg (correct)
  • 75 kg
  • 125 kg
  • Who is responsible for providing tarpaulins to cover wagons if required?

  • The consignor at their own cost (correct)
  • The railway company
  • The consignee at their own cost
  • The freight forwarder
  • What is the freight concession or applicable class for fly ash when loaded in open or flat wagons?

  • 40% concession or applicable class (correct)
  • 30% concession
  • 20% concession
  • 50% concession or applicable class
  • What loading condition must be met for loose fly ash transport?

    <p>It must be hydrated and the wagons covered by tarpaulins by the customer (A)</p> Signup and view all the answers

    What is the freight charge for fly ash when transported in covered wagons?

    <p>Charged at NTR of class LR1 (C)</p> Signup and view all the answers

    Besides the fly ash freight concession, what is also concurrently available?

    <p>Freight concession granted to North East region (B)</p> Signup and view all the answers

    What is the main aim of the Freight Incentive Scheme for Freight Forwarders?

    <p>To facilitate cargo aggregation and expand the commodity basket on Railways (D)</p> Signup and view all the answers

    What is the investment return percentage for the General Purpose Wagon Investment Scheme?

    <p>10% for 15 years (D)</p> Signup and view all the answers

    Which scheme allows for a reduction in terminal charges?

    <p>Terminal Development Scheme (A)</p> Signup and view all the answers

    What is the maximum discount percentage offered under the Station to Station Rates Scheme (STS)?

    <p>30% (A)</p> Signup and view all the answers

    What is the maximum distance between two stations/points for a cluster of stations, as defined in the Station to Station Rates Scheme (STS)?

    <p>150 km (A)</p> Signup and view all the answers

    Which type of traffic is excluded from the Station to Station Rates Scheme (STS)?

    <p>Military traffic (B)</p> Signup and view all the answers

    According to the content, for how long is the Engine-On-Load Scheme valid?

    <p>1 year (B)</p> Signup and view all the answers

    What is the objective of the Round Trip Traffic Concession (RTT)?

    <p>To reduce empty run by offering traffic in return direction (D)</p> Signup and view all the answers

    What is the charge per tonne for using a Private Freight Terminal?

    <p>Rs. 20 per tonne (D)</p> Signup and view all the answers

    What is the minimum duration for an agreement under the Station to Station Rates Scheme (STS)?

    <p>1 year (B)</p> Signup and view all the answers

    What is the primary purpose of the Railway Board's 'Development of Goods-shed through Private Investment' initiative?

    <p>To increase the railway's freight business volumes and model share. (D)</p> Signup and view all the answers

    Which types of goods-shed development are permitted under the 'Development of Goods-shed through Private Investment' guidelines?

    <p>Both the development of new Green-field and the redevelopment of existing Brown-field goods-sheds are permitted. (D)</p> Signup and view all the answers

    Which of the following infrastructural facilities is explicitly permitted to be included in the scope of work for Green-field goods-shed development?

    <p>Laying of additional lines for handling traffic, including electrification and signaling changes. (D)</p> Signup and view all the answers

    Which of the following is a listed incentive for private parties involved in the 'Development of Goods-shed through Private Investment'?

    <p>A share in the Terminal Charges (TC) and Terminal Access Charges (TAC). (C)</p> Signup and view all the answers

    What is the typical tenure period for private parties involved in developing goods-sheds under this scheme, from the date of completion of the work?

    <p>Ten (10) years. (D)</p> Signup and view all the answers

    What is the primary objective of the Engine-On-Load (EOL) scheme?

    <p>To improve the utilization of rolling stock and enable quicker freight train clearance. (C)</p> Signup and view all the answers

    According to the provided information, what is the general duration of the agreement between the customer and the Railways after procurement of rakes?

    <p>35 years, or the operational period of the rakes, whichever is shorter, with potential for renewal. (C)</p> Signup and view all the answers

    What happens with the freight charges after the completion of 20 years of the agreement period after rakes are procured?

    <p>Freight will be collected at the prevalent rate without any concession. (B)</p> Signup and view all the answers

    Under the Engine-On-Load (EOL) scheme, what is a requirement for siding owners?

    <p>Siding owners must opt for EOL operations by signing an agreement with the zonal railway. (B)</p> Signup and view all the answers

    What is one benefit available to the customer under the Engine-On-Load (EOL) scheme?

    <p>Exemption from Engine Hire charges within the free time of loading or unloading. (A)</p> Signup and view all the answers

    How does the freight charge differ for bulb-type sidings under the Engine-On-Load (EOL) scheme?

    <p>Freight is charged based on the through distance up to a defined loading or unloading point, not for the entire length of the siding. (A)</p> Signup and view all the answers

    In a Multiple-Plant Siding, if one plant is covered under the EOL scheme, what benefit does the entire siding receive?

    <p>The entire siding gets the benefit of EOL scheme without the cost of railway staff. (D)</p> Signup and view all the answers

    What does AFTO stand for, in the context of railway freight operations?

    <p>Automobile Freight Train Operator. (A)</p> Signup and view all the answers

    Under what circumstances are credit hours earned by a customer for handling wagons, adjusted against debit hours?

    <p>When the customer handles wagons faster than the permitted timeframe and has the same type of stock. (C)</p> Signup and view all the answers

    What are the primary responsibilities of an Automobile Freight Train Operator (AFTO)?

    <p>To invest in procurement of rakes and arrange traffic for loading/unloading. (D)</p> Signup and view all the answers

    Which of the following is a key feature of the premium indent scheme for customers?

    <p>The customer is required to pay a 15% premium in advance on the normal tariff, and it is forfeited upon withdrawal. (C)</p> Signup and view all the answers

    What is a key characteristic of the free time for loading and unloading under the Engine-On-Load (EOL) scheme?

    <p>The free time is shorter than normal, to minimize delays for wagons and locomotives. (A)</p> Signup and view all the answers

    What is the primary aim of the Alternate Goods-Shed Policy?

    <p>To relieve congestion at busy goods-sheds by not levying terminal charges. (B)</p> Signup and view all the answers

    What are some main objectives of railway goods transportation?

    <p>Increased freight revenue, faster release of rakes, and increased cordial relations with freight customers. (D)</p> Signup and view all the answers

    According to the classification of goods-sheds, which group manages the most number of rakes per month?

    <p>Group I: More than 12 rakes (D)</p> Signup and view all the answers

    What is the consequence of withdrawing a premium indent once it has been placed?

    <p>The premium paid is forfeited. (B)</p> Signup and view all the answers

    What is the basis of levying demurrage charges under the debit/credit system?

    <p>Net debit hours. (C)</p> Signup and view all the answers

    Which of the following is NOT a step taken to increase ease of doing business with Railways?

    <p>Decrease in terminal capacity. (C)</p> Signup and view all the answers

    What is the minimum annual traffic requirement for customers to be eligible for the Debit/Credit system?

    <p>1 MT traffic per annum (D)</p> Signup and view all the answers

    What is a key change in the private siding policies?

    <p>No limit on the number of co-users. (D)</p> Signup and view all the answers

    What is the minimum number of wagons an Automobile Freight Train Operator (AFTO) must induct, excluding the brake van?

    <p>1 rake (A)</p> Signup and view all the answers

    Which of the following statements best describes the agreement between the AFTO and the Indian Railways?

    <p>The agreement remains valid until the rakes are operational or reaches their codal life, whichever occurs first. (B)</p> Signup and view all the answers

    What is the significance of the ‘D’ priority in the Private Freight Terminal (PFT) scheme?

    <p>It allows PFTs to handle outward loading of coal and coke but prohibits the handling of other traffic. (A)</p> Signup and view all the answers

    Which of the following is a primary reason for the railway's policy towards Automobile Freight Train Operators (AFTOs)?

    <p>To encourage investment in rail infrastructure and promote the use of rail transport for automobile freight. (A)</p> Signup and view all the answers

    Which of the following is a key responsibility of the Terminal Management Company (TMC) in the Private Freight Terminal (PFT) scheme?

    <p>Hiring and managing the commercial staff responsible for overseeing loading and unloading activities at the PFT. (C)</p> Signup and view all the answers

    What is the primary focus of the Business Development Units at the Zonal level within the Indian Railways?

    <p>Retaining existing traffic while creating additional volumes and revenue streams, and sending proposals from divisions to the board. (D)</p> Signup and view all the answers

    According to the provided data, what was the approximate shortfall in passenger revenue compared to the set target for the year 2021-22?

    <p>Approximately Rs 5,271 Crores (C)</p> Signup and view all the answers

    Within the context of Traditional Empty Flow Direction (TEFD), which of the following is a correct statement regarding permitted traffic?

    <p>Traffic under TEFD can be booked from any terminal in the originating division of the empty flow stream to any intermediate terminal in the direction of empty flow stream. (A)</p> Signup and view all the answers

    Which type of wagons are NOT specifically designated for use under the Traditional Empty Flow Direction (TEFD) scheme?

    <p>Flat wagons carrying bagged consignment (D)</p> Signup and view all the answers

    What is the percentage freight concession applicable to the loading of Cement in open and flat wagons?

    <p>30% (C)</p> Signup and view all the answers

    What is the validity period for the Traditional Empty Flow Direction (TEFD) as per the information provided?

    <p>From 01-04-2022 to 31-03-2023. (D)</p> Signup and view all the answers

    What is the main goal of implementing the Traditional Empty Flow Direction (TEFD) scheme as outlined by the Indian Railways?

    <p>To reduce empty run ratios and generate additional revenue. (C)</p> Signup and view all the answers

    Which of the following commodities, when loaded in individual wagons, is NOT restricted under the freight incentive scheme?

    <p>Marine Gypsum (C)</p> Signup and view all the answers

    Under the freight incentive scheme for freight forwarders, what is the consequence of loading multiple commodities, including iron and steel, in the same wagon?

    <p>Not permitted if it contains more than 2 commodities. (C)</p> Signup and view all the answers

    According to the freight incentive scheme, if a wagon is loaded with two different commodities, how is the freight rate determined?

    <p>Trainload rate of the higher class of the two commodities. (A)</p> Signup and view all the answers

    Which criteria regarding the distance of haulage is part of the freight incentive scheme for individual wagons?

    <p>Minimum lead of 700 kilometers. (C)</p> Signup and view all the answers

    Which type of concession is available concurrently with the Freight Incentive scheme for freight forwarders?

    <p>Concession for traffic loaded to and from North East states. (C)</p> Signup and view all the answers

    Which wagon type is explicitly permitted under the Freight Incentive Scheme?

    <p>Covered wagons (B)</p> Signup and view all the answers

    Under the Freight Incentive scheme, what freight rate is applied to individual wagons loaded with more than two commodities?

    <p>Composite class rate of 120. (A)</p> Signup and view all the answers

    What is included in the description of 'Restricted Commodities' under this incentive scheme?

    <p>Coal and all its variants (C)</p> Signup and view all the answers

    Which of the following is NOT a freight concession available to a Freight Forwarder under the Freight Incentive Scheme?

    <p>Composite class rate when loaded with a mix of goods. (B)</p> Signup and view all the answers

    What is the primary criterion for determining the benchmark for commodity net tonne kilometers (NTKMs)?

    <p>The monthly average of commodity NTKMs achieved in the previous 24 months or commodity NTKMs in the same month of the previous year, whichever is higher. (B)</p> Signup and view all the answers

    A customer ships goods outward at Class 150 and receives inward goods at Class 140. How will the charging take place?

    <p>Charging will be at Class 140 with a reduction equivalent to the freight difference between Class 150 and Class 140. (C)</p> Signup and view all the answers

    For a traffic where both outward and inward classification is the same, how will the charging be calculated?

    <p>Charging will be done at 10% less than the applicable class rate. (D)</p> Signup and view all the answers

    What is the maximum concession percentage for coal and coke traffic under a Long Term Tariff Contract (LTTC)?

    <p>Equivalent of 10% of the applicable class freight. (D)</p> Signup and view all the answers

    What is the minimum annual traffic volume required for a customer to be eligible for a Long Term Tariff Contract?

    <p>One Million Tonnes per annum. (A)</p> Signup and view all the answers

    What is the minimum duration for a Long Term Tariff Contract agreement?

    <p>3 years (D)</p> Signup and view all the answers

    By what minimum percentage should the Minimum Guaranteed Gross Freight Revenue (MGGFR) for each year increase under an LTTC?

    <p>5% annually (A)</p> Signup and view all the answers

    For a customer entering into a Long Term Tariff Contract, how is the Average Gross Freight Revenue (AGFR) calculated?

    <p>Either based on the freight received from outward traffic or the sum of inward and outward freight traffic, as per agreement terms. (C)</p> Signup and view all the answers

    From the second year onwards of a Long Term Tariff Contract agreement, what acts as the Benchmark Gross Freight Revenue (BGFR) for calculating rebates?

    <p>The MGGFR of the preceding year, as committed at the time of signing the agreement. (B)</p> Signup and view all the answers

    Which of the following commodities are classified as restricted?

    <p>Automobile traffic, Military traffic and Container Traffic (A)</p> Signup and view all the answers

    What is a critical factor determining the validity of the agreement between a customer and Railways after the procurement of rakes?

    <p>The agreement lasts for 35 years or until the rakes cease to be operational, whichever is earlier. (C)</p> Signup and view all the answers

    What condition applies to freight charges once a 20-year period has elapsed following a rake procurement agreement?

    <p>Freight is collected at standard rates, without any extended concessions. (A)</p> Signup and view all the answers

    Under the Engine-On-Load (EOL) scheme, what is a key advantage provided to siding owners regarding locomotives?

    <p>The train engine remains available during loading/unloading at the siding without extra charges. (A)</p> Signup and view all the answers

    What is the central objective of implementing lower free time for 'EOL' operations, as opposed to normal free time?

    <p>To minimize hold time for the wagons and decrease locomotive waiting times. (A)</p> Signup and view all the answers

    What specific cost-related exemption is granted to customers under the Engine-On-Load (EOL) scheme?

    <p>Customers are exempt from Engine Hire charges for engine use within free time of loading or unloading. (A)</p> Signup and view all the answers

    How are freight charges calculated for bulb-type sidings under the Engine-On-Load (EOL) scheme?

    <p>Freight is charged on the basis of through distance up to a specified loading or unloading point, not for the entire siding. (B)</p> Signup and view all the answers

    In a multiple-plant siding, how does the EOL scheme's implementation for one plant affect the entire siding?

    <p>The siding gets all benefits of EOL scheme, despite only one plant being covered, with no cost of Railway staff. (A)</p> Signup and view all the answers

    In the context of railway freight operations, what does the acronym 'AFTO' stand for?

    <p>Automobile Freight Train Operator (A)</p> Signup and view all the answers

    What is a primary role of an Automobile Freight Train Operator (AFTO)?

    <p>To arrange traffic for loading and unloading in Auto Freight Trains, after investing in procuring rakes. (D)</p> Signup and view all the answers

    According to the content, which entity invests in procuring rakes and arranges for loading/unloading in Auto Freight Trains (AFT)?

    <p>The Automobile Freight Train Operator (AFTO) (A)</p> Signup and view all the answers

    For online payments, within what time frame must the payment be completed after receiving the notification?

    <p>Within two hours (A)</p> Signup and view all the answers

    If an online payment cannot be made, what is the alternative payment method?

    <p>Through Demand Draft (D)</p> Signup and view all the answers

    What does the second digit of RR (Railway Receipt) indicate when an online payment is made?

    <p>It will be 8 (D)</p> Signup and view all the answers

    According to the provided content, what is the surcharge percentage for mini-rakes traveling from 1001 Kms to 2000 Kms?

    <p>7.5% (D)</p> Signup and view all the answers

    Which of the following is NOT an alternate goods shed for Nizamabad?

    <p>Ligampet (C)</p> Signup and view all the answers

    What is the primary factor used to determine the benchmark for monthly average commodity net tonne kilometers (NTKMs)?

    <p>The monthly average of commodity NTKMs achieved in previous 24 months or commodity NTKMs in the same month of previous year, whichever is higher. (A)</p> Signup and view all the answers

    If the outward traffic is Class 150 and the inward traffic is Class 140, how is the charging for the whole traffic calculated?

    <p>The traffic is charged at Class 140, less the difference of freight between Class 150 and Class 140. (C)</p> Signup and view all the answers

    For a customer to be eligible for a Long Term Tariff Contract, what is the minimum annual traffic volume they should have loaded in the previous year?

    <p>1 million tonnes (A)</p> Signup and view all the answers

    Under the Long Term Tariff Contract, what is the minimum annual increase required for the Minimum Guaranteed Gross Freight Revenue (MGGFR)?

    <p>5% annually (D)</p> Signup and view all the answers

    For a Long Term Tariff Contract, what is the basis for calculating Actual Gross Freight Revenue (AGFR)?

    <p>The sum of inward and outward freight traffic of the customer. (B)</p> Signup and view all the answers

    When the outward and inward traffic classes are the same, what is the charging rate?

    <p>10% less than the class rate. (C)</p> Signup and view all the answers

    Under the Long Term Tariff Contract, when is an increase in freight rates applied to the customer?

    <p>At the beginning of the next year of the agreement. (C)</p> Signup and view all the answers

    What is the primary benefit offered to companies that maintain their traffic volume at the same level as the previous year under the Long Term Tariff Contract?

    <p>A rebate on the freight charges. (D)</p> Signup and view all the answers

    According to the Liberalised Special Freight Train Operator Scheme (LSFTO), what kind of organization can apply to be a train operator?

    <p>Companies, subsidiary companies, joint ventures, or public sector undertakings. (D)</p> Signup and view all the answers

    Under the LSFTO scheme, how many years of rebate is granted for special purpose wagon rates?

    <p>20 years (A)</p> Signup and view all the answers

    Under the LSFTO scheme, where are the special freight trains allowed to operate?

    <p>On pre-approved routes or circuits. (B)</p> Signup and view all the answers

    After receiving approval from the Railway Board under the LSFTO scheme, within what time frame must the procurement of rakes be completed?

    <p>Within 2 years. (A)</p> Signup and view all the answers

    According to the LSFTO scheme, who bears the cost for the maintenance of wagons?

    <p>Indian Railways bears the cost. (A)</p> Signup and view all the answers

    How much additional freight rebate is given for high-capacity wagons if their throughput is more than 10% higher than normal rakes, according to the LSFTO scheme?

    <p>Additional 2% rebate. (D)</p> Signup and view all the answers

    Under the LSFTO scheme, the customer is required to apply online through which portal for procurement of Special Purpose rakes?

    <p>The Freight Business Development Portal. (A)</p> Signup and view all the answers

    What type of traffic is explicitly stated as being permitted for back loading on automobile rakes after a fully loaded run?

    <p>Auto ancillaries and auto spare parts (C)</p> Signup and view all the answers

    Under the AFTO scheme, who is responsible for the maintenance of the wagons?

    <p>Indian Railways (IR) (A)</p> Signup and view all the answers

    Which type of traffic is generally excluded for booking and handling at a Private Freight Terminal (PFT) under ‘C’ priority?

    <p>Coal and coke (B)</p> Signup and view all the answers

    What condition applies to charging for an automobile rake when it contains at least one loaded wagon?

    <p>The full rake shall be charged as loaded (C)</p> Signup and view all the answers

    What does the policy for procuring wagons under the AFTO scheme require?

    <p>Prior administrative approval of the Ministry of Railways (MOR) (C)</p> Signup and view all the answers

    Which entity is solely responsible for the land arrangements of a Private Freight Terminal (PFT)?

    <p>The Terminal Management Company (TMC) (D)</p> Signup and view all the answers

    What additional fee is required if a PFT owner wants to handle outward iron ore or iron pallet traffic?

    <p>Rs 5 crore (A)</p> Signup and view all the answers

    What is a key requirement for an Automobile Freight Train Operator (AFTO) regarding the induction of rakes?

    <p>A minimum of one rake including a brake van with 4% additional spare wagons (B)</p> Signup and view all the answers

    What is the allowed period for the agreement of an Automobile Freight Train Operator (AFTO) for its operations?

    <p>Till the codal life or the period the rakes are operational (C)</p> Signup and view all the answers

    Which of these expenses are to be borne by the Terminal Management Company (TMC) of a PFT?

    <p>Cost of commercial staff per shift (A)</p> Signup and view all the answers

    Under the Private Freight Terminal (PFT) scheme, which of the following is true regarding freight charges?

    <p>Freight charges are based on through distance. (A)</p> Signup and view all the answers

    Who is responsible for the maintenance of the track portion within the railway boundary from the take-off point in a PFT?

    <p>The Terminal Management Company (TMC) (A)</p> Signup and view all the answers

    How are terminal charges for consignments booked to Private Freight Terminals (PFTs) handled?

    <p>They are refunded in the following month. (B)</p> Signup and view all the answers

    What is the per-tonne refund amount given for consignments booked to Private Freight Terminals?

    <p>Rs 20 per tonne for both inward and outward traffic. (D)</p> Signup and view all the answers

    Which of the following best describes General Purpose Wagons (GPW)?

    <p>Wagons like BOX, BOXN, and BCN, approved to carry multiple commodities. (B)</p> Signup and view all the answers

    What happens to the General Purpose Wagon rakes inducted under the GPWIS?

    <p>They are distinctly indicated through a color scheme and not merged into IR's pool. (D)</p> Signup and view all the answers

    Under GPWIS, who is responsible for the maintenance of wagons?

    <p>Indian Railways(IR) on payment from the wagon owner. (D)</p> Signup and view all the answers

    What is the criteria used to approve the circuits for operation of rakes under the General Purpose Wagon Investment Scheme (GPWIS)?

    <p>Circuits are approved only if the Empty Return Ratio (ERR) is at par or better than the benchmark. (C)</p> Signup and view all the answers

    Between which types of locations can the rakes procured under the GPWIS operate?

    <p>Between private sidings, private freight terminals (PFTs) , Inland Container Depots(ICD) , ports or mines. (B)</p> Signup and view all the answers

    What is the minimum number of rakes that a party has to run under the General Purpose Wagon Investment Scheme (GPWIS), including spares and brake van?

    <p>One rake with 4% spares (D)</p> Signup and view all the answers

    Flashcards

    Freight Incentive Scheme for Loading of Fly Ash

    A program designed to encourage the transportation of fly ash by rail. It provides discounts on freight costs for fly ash shipments, depending on the type of wagon used and the packing method.

    Open Wagon

    A type of wagon that has no roof and is open to the elements. It is often used for transporting bulk materials, such as fly ash.

    Flat Wagon

    A type of wagon that has a flat bed and no sides, used for transporting large or heavy items.

    Covered Wagon

    A type of wagon with a roof and enclosed sides, providing protection for the goods being transported.

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    NTR (Normal Tariff Rate)

    The standard rate of freight charges for a specific type of goods.

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    Bagged Fly Ash

    Fly ash packed in bags of a standard size.

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    Loose Fly Ash

    Fly ash that is transported loose, without any protective packaging. It requires special handling, such as hydration and covering with tarpaulins.

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    General Purpose Wagon Investment Scheme

    This scheme provides a 10% discount for 15 years on wagon investment.

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    Wagon Leasing Scheme

    This scheme allows customers to lease wagons from the railway.

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    Long Term Tariff Contract Scheme

    This scheme offers discounts on long-term contracts for incremental or retention traffic, with a minimum of one MT eligibility and a maximum of five MTs.

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    Station to Station Rates Scheme (STS)

    This scheme provides discounts for specific commodities moving between designated origin and destination stations or points, with a maximum discount of 30% and a contract period of 1 to 3 years.

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    Round Trip Traffic Concession (RTT)

    This scheme focuses on maximizing the use of wagons by offering discounts for traffic in the return direction from the destination station or any point within 200 km.

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    Key objective of STS scheme

    This scheme is designed to increase NTKM (Net Tonne Kilometers) for specific commodities and stations, ensuring traffic growth rather than diversion.

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    STS concession application to clusters of stations

    This scheme allows for the creation of clusters of stations within a 150 km radius, applying discounts to traffic within these clusters to prevent diversion between close-by stations.

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    Benchmark NTKM calculation

    The benchmark NTKM for calculating concessions under the STS scheme is determined by averaging NTKMs from the previous 12 months.

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    STS agreement effective date

    The STS agreement comes into effect on the first day of the month following the agreement signing.

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    Green-Field Goods-shed

    An entirely new goods-shed facility built on a fresh plot of land, often designed and constructed specifically for the purpose.

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    Brown-Field Goods-shed

    An existing goods-shed which is modernized, expanded, or upgraded to improve its facilities and operations. It may involve repurposing an existing facility.

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    Tenure of Goods-shed Development

    The duration for which a private investor can operate and manage a goods-shed. The policy states a standard duration of 5 years, potentially extendable to 10 years.

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    Incentives for Private Goods-shed Development

    Incentives offered to private investors for developing goods-sheds, consisting of a revenue share from the terminal charges paid by users.

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    Goods-shed

    A facility established by the Indian Railways to handle the loading and unloading of goods for trains.

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    Credit Hour Adjustment

    When a customer handles wagons faster than allowed, they earn credit hours that offset their debit hours. This adjustment occurs monthly for the same stock and operational type (loading or unloading).

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    Demurrage Charge

    A charge levied on customers who exceed the allowed free time for handling wagons.

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    Debit/Credit System

    A system that tracks a customer's wagon handling time, allocating debit hours for delays and credit hours for early completion.

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    Premium Indent

    An optional scheme allowing customers to specify a desired supply date for rakes. If the supply is delayed, a premium paid in advance is used to offset the normal freight charges.

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    Premium Tariff

    A surcharge applied to customers who opt for the Premium Indent scheme, ensuring timely rake delivery.

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    Group I Goods-Sheds

    Goods-sheds that handle a high volume of wagons, processing more than 12 rakes per month.

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    Group II Goods-Sheds

    Goods-sheds with moderate wagon traffic, handling between 7 and 12 rakes per month.

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    Group III Goods-Sheds

    Goods-sheds handling a low volume of wagons, processing fewer than 7 rakes per month.

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    Faster Rake Release

    Release of rakes from the goods-sheds is expedited, minimizing delays.

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    Avoid Rake Detention

    Prevention of extended wagon detention, ensuring efficient utilization.

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    Rake Agreement

    An agreement outlining the terms of using railway rakes for transporting goods, including details like concession periods, wagon numbers, and freight rates.

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    Rake Agreement Validity

    The period during which the rake agreement remains valid. Typically lasts for 35 years or until the rakes become non-operational, whichever occurs first.

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    Engine-On-Load (EOL) Scheme

    A program designed to improve the efficiency of freight train operations. It involves keeping the train engine attached while loading or unloading, reducing idle time and speeding up the process.

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    Free Time Under EOL

    The time allowed for loading or unloading goods at a siding under the EOL scheme. It is shorter than the standard free time to minimize delays.

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    Exemption from Engine Hire Charges

    A benefit of the EOL scheme where the customer is not charged for using the train engine during the free time for loading and unloading goods.

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    Exemption from Siding Charges

    Another benefit of the EOL scheme where the customer is not charged for using the siding. Instead, freight rates are calculated based on the distance to a designated loading/unloading point within the siding.

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    Automobile Freight Train Operator (AFTO) Scheme

    A scheme for transporting automobiles by rail that involves private operators investing in train rakes and arranging the transportation of vehicles.

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    Automobile Freight Train Operator (AFTO)

    A private company or individual responsible for procuring and operating train rakes dedicated to transporting automobiles.

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    Auto Freight Trains (AFT)

    Specialized freight trains designed for transporting automobiles efficiently.

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    Loading/Unloading Operation

    The process of loading and unloading goods from freight trains, especially in the context of the EOL scheme where the engine stays attached throughout the process.

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    Traditional Empty Flow Direction (TEFD)

    A scheme designed to reduce empty train journeys and generate extra revenue for Railways.

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    TEFD Incentive

    It involves automatic rebates given through the FOIS (Freight Operations Information System) to customers who follow specific freight movement guidelines.

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    Freight Incentive Scheme

    A scheme providing freight rate concessions for specific commodities transported by rail. It aims to encourage the use of rail for certain goods.

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    Restricted Commodities

    Commodities restricted from receiving freight concessions under the Freight Incentive Scheme. Examples include coal, iron ore, POL, and traffic in private wagons.

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    Floor Rate

    The minimum chargeable freight rate after all concessions are applied. It is based on the Normal Tariff Rate (NTR) of class LR-1.

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    Lead Restriction

    The minimum distance a shipment must travel to qualify for the freight incentive scheme.

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    Freight Incentive Scheme for Freight Forwarders

    A special scheme offering freight discounts for freight forwarders who transport goods by rail.

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    Benchmark for Restricted Commodities

    A benchmark for calculating freight charges for restricted commodities, based on the average NTKM (net tonne kilometers) achieved over the previous 24 months or the same month of the previous year, whichever is higher. These benchmarks are specific to the commodity and the direction of movement.

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    Long Term Tariff Contract (LTTC)

    A scheme allowing customers to secure long-term freight contracts with the railways, offering discounts based on increased traffic and guaranteed freight revenue.

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    Minimum Guaranteed Gross Freight Revenue (MGGFR)

    The minimum guaranteed gross freight revenue that a customer under an LTTC scheme must provide to the railways, based on a percentage increase from the previous year's freight revenue.

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    Actual Gross Freight Revenue (AGFR)

    The actual gross freight revenue generated by a customer in the preceding twelve months, used as a basis for calculating the MGGFR.

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    Benchmark Gross Freight Revenue (BGFR)

    The benchmark gross freight revenue used for calculating rebates under the LTTC scheme. This is the MGGFR from the preceding year.

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    Rebate under LTTC

    A rebate offered to customers under the LTTC scheme based on exceeding the BGFR. This rebate is directly proportional to the incremental growth in AGFR above the benchmark.

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    Eligibility Criteria for LTTC

    The eligibility criteria for participating in the LTTC scheme, requiring a minimum of one million tonnes of traffic per annum (outward or combined outward and inward) in the previous year.

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    Duration of LTTC Agreement

    The minimum duration of an LTTC agreement, stipulated to be not less than three years, with a maximum extension of five years in total.

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    Commitment under LTTC

    The commitment required from customers participating in the LTTC scheme, to increase their freight revenue from the existing level by at least 5% annually.

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    Private Freight Terminal (PFT)

    A facility developed by private investors to handle the loading and unloading of goods for trains, offering incentives like revenue sharing from terminal charges.

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    Normal Tariff Rate (NTR)

    The standard rate of freight charges for a specific type of goods.

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    Online Payment for Railway Services

    Online payment for railway services within two hours of receiving the mail/message. The second digit of the RR (Railway Receipt) number will be 8 if paid online. On successful payment, a message is sent to the FOIS (Freight Operations Information System) at the location to initiate the generation of the RR.

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    Traditional Payment for Railway Services

    Traditional payment method using a demand draft for railway services when online payment is not completed within two hours. This method allows for alternative payment options when unforeseen circumstances prevent online payment.

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    Terminal Charge Exemption for Alternate Goods Sheds

    A system that encourages the use of non-busy goods sheds by removing terminal charges for loading/unloading at these alternative sites. This aims to decongest busy goods sheds, improve efficiency, and promote alternative transportation points.

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    Debit/Credit System for Wagon Handling

    A system that tracks the wagon handling time for customers, assigning debit hours for delays and credit hours for early completion of loading/unloading operations. This encourages timely wagon utilization and minimizes delays.

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    Premium Indent Scheme for Rake Supply

    An optional scheme offering customers the ability to specify a desired supply date for rakes. If the supply is delayed, a premium paid in advance is used to offset the normal freight charges. This ensures timely delivery by offering a financial incentive to prioritize the customer's needs.

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    What is a Private Freight Terminal (PFT)?

    A private facility designed for loading and unloading rail freight, with incentives for investors such as revenue sharing from terminal charges.

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    What is the General Purpose Wagon Investment Scheme (GPWIS)?

    This scheme encourages investment in wagons that can carry various commodities without specific approvals. It promotes efficient utilization of rail capacity.

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    What is the Freight Incentive Scheme for Loading of Fly Ash?

    This scheme provides discounts on freight costs for fly ash shipments based on wagon type and packing method.

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    What is an Open Wagon?

    A wagon that has no roof and can transport bulk materials like fly ash.

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    What is a Flat Wagon?

    A wagon with a flat bed used for transporting large or heavy items.

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    What is a Covered Wagon?

    A wagon with a roof and enclosed sides for protecting goods during transport.

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    What is an Open Wagon?

    A type of wagon that has no roof and is open to the elements. It is often used for transporting bulk materials, such as fly ash.

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    What are Demurrage Charges?

    A charge levied on customers who exceed the allowed free time for holding a wagon.

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    What is the Debit/Credit System for wagons?

    A system that tracks the handling time of a wagon, giving credit for early releases and debit for delays.

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    What is the Round Trip Traffic Concession (RTT)?

    This scheme helps maximize wagon use by offering discounts for traffic moving in the return direction.

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    Study Notes

    South Central Railway Freight Incentive Schemes

    • South Central Railway presented a presentation on the latest freight incentive aimed at easing business operations for freight business.
    • Indian Railways has implemented various freight policy initiatives to boost economic activity.
    • Relaxation in incentives have been provided
    • Business Development Units (BDUs) are established at Board, Zonal, and Divisional levels.
    • Board level units formulate railway policies, approve proposals for Zonal Railways.
    • Zonal levels maintain and increase traffic volume to generate more revenue.
    • Divisional level units foster business and market interactions.

    Freight Earnings

    • Indian Railways earned Rs. 1,41,116 Crores in freight earnings during 2021-22.
    • The target for freight earnings was Rs. 1,45,275 Crores.

    Passenger Earnings

    • Passenger revenue amounted to Rs. 39,104 Crores in 2021-22.
    • The target for passenger revenue was Rs. 44,375 Crores.

    Sundry Earnings

    • Sundry earnings totaled Rs. 6,020 Crores in 2021-22.
    • The target for sundry earnings was Rs. 7,000 crores.

    Other Coach Revenues

    • Other coach revenues (luggage, parcels, etc.) reached Rs. 4,888 Crores in 2021-22.
    • The target for such revenues was Rs. 5,000 Crores.

    Earnings Summary

    • Overall earnings for 2021-22 reached Rs. 1,91,128 Crores.
    • Freight earnings constituted 73.8% of the total, followed by passenger revenue at 20.4%.
    • Other categories like sundry and other coaching revenues contributed the remaining percentages.

    Freight Incentive Schemes - Traditional Empty Flow Direction (TEFD)

    • Railway Board's Corrigendum No.5 to Rate Circular No.13 (31-3-2022) is valid from 1-4-2022 to 31-3-2023.
    • This scheme aims to reduce empty run ratio for Indian Railways to increase revenue.
    • Automation of rebate is handled through a computerised FOIS system.
    • Notified TEFD streams are based on intra-/inter-zonal traffic between divisions.
    • Traffic booking can be made from end-to-end or any terminal to an intermediary terminal.
    • Permitted wagons include open BOXN group, pure BOST rakes, covered BCN and BCNHL group, and flat wagons/mixed steel rakes (CONCORD).
    • Concessions under TEFD for inter/intra-zonal traffic are 20%/15% of applicable NTR, with a floor limit of NTR Class 100.
    • Restricted commodities include iron ore, coal & coke, chemical manures, POL traffic (RMC), Military traffic, and commodities under Class 100 & 100A that are below LR-1.
    • Short lead traffic (<= 100 kms) is not eligible.
    • Minimum offer of traffic—half rake: BCN/BCNA/BCNAHS-10, BCNHL-10, BOXN group-29.
    • Traffic booked under this scheme cannot be rebooked, diverted, or delivered short of the destination.

    Freight Incentive Scheme for Loading of Bagged Consignment

    • Aiming to increase traffic and revenue, a scheme is provided for loading of bagged consignment in open and flat wagons.
    • Incentives are granted to customers for the loading of bagged consignments
    • The scheme provides commodities like cement, china clay, chemical manures (excluding rock phosphate), De-oiled cake, soapstone powder, hydrated lime, quicklime, lead/zinc concentrate, bentonite powder, soda ash, chalk powder, calcite powder, calcinated bauxite, marble chips, and caustic soda.
    • The percentage discount on NTR is 20% for cement to 30% for fly ash and urea.
    • Provisions are made for pro-rata basis in case of bagged consignments clubbed/loaded in open/flat wagons.
    • Floor rate of minimum chargeable freight after all concessions should not be less than NTR Class LR-1.
    • All terminals including ports are permitted.
    • Lead restrictions—at least 100 km. Concurrent freight concessions of 6% are available from North Eastern states.

    Freight Incentive Scheme for loading of fly ash

    • The railway board has introduced a scheme for incentives to be granted for the loading of fly ash
    • Different types of stocks (Open & flat wagons, Flat wagons, Covered wagons) have varying rates of concession (40% or applicable class)
    • The rate for covered wagons is quoted as LR1

    Freight Incentive Scheme for Freight Forwarders

    • Aims to facilitate cargo aggregation and expand the commodity basket.
    • Restricted commodities under this scheme include coal, coke, iron ore, POL traffic, cement, foodgrain, caustic Sda etc.
    • Other restrictions are minimum freight rate of NTR Class LR-1. Permitted terminals are Goods sheds. Minimum Lead restriction is 700 kms. Permitted wagons: covered, BOXN, Flat wagons.
    • Concessions applicable for 2 commodity loading (All types of ores and minerals, Cement, Food grain, Chemical Manures, Iron and steel are excluded)

    Wagon Leasing Schemes

    • Various schemes facilitate wagon leasing, including a liberalized special freight scheme (12% for 20 years).
    • Automobile freight train operators, general-purpose wagon investment scheme, and wagon leasing scheme are among the programs.

    Other Schemes

    • Long Term tariff Contract scheme for Incremental or Retention Traffic. Includes 5 Mts.
    • Station to Station Scheme—maximum 30%.
    • Merry-Go-Round Scheme.
    • Terminal Development Scheme has no terminal charges.
    • Engine-On-Load Scheme is valid for one year
    • Roll-on-Roll-off Scheme.
    • Private freight terminal fee Rs. 20/per tonne

    Station to Station Rates Scheme (STS)

    • Railway Board's Rate Circular No. 15 is issued (2022), providing concessions with yearly basis accrual on incremental traffic exceeding benchmark NTKM.
    • Specific stream/commodity and stock (block/2/multi-point/mini rake) are considered.
    • Excluded commodities: All < Class-100, coal & coke, ore etc.., Military traffic, POL, and RMC.
    • Maximum percentage discount is 30%. Agreement validity is 3 years (min 1 year)

    Round Trip Traffic Concession (RTT)

    • Railway Board vide Rate Circular No. 27 of 2020 has valid scheme between 24-10-2020 to 31-10-2022.
    • Primary objective is to lower empty runs and provide return traffic between originating & destination station (within 200 kms)
    • Restricted commodities, include iron ore (all types), container traffic, POL, military traffic, RMC, automobile traffic and traffic below NTR Class-100,
    • Benchmark is based on monthly average of commodity NTKMs (previous 24 months or previous year's month for outward and return).
    • Freight charging based on outward/inward class—150/160, 150/140, both outward/inward.
    • There is concession for Coal & coke.

    Long Term Tariff Contract

    • Eligibility criteria requiring a minimum of one million tonnes of traffic per annum (outward or inward) in the previous year.
    • Agreement duration must be at least three years, maximum five years.
    • Increase in MGGFR—minimum 5% annually for each year. MGGFR exceeds previous 12 month AGFR minimum 5%.
    • AGFR is based on outward or combined outward/inward traffic per terminals.
    • Percentage of rebate based on incremental growth over benchmark BGFR.

    Liberalized Special Freight Train Operator (LSFTO)

    • Applicant eligibility criteria (Companies Act 1956 subsidiary/joint venture company/public sector undertaking).
    • Minimum one rake required for the scheme.
    • Operation on approved circuits; access to railway owned sheds, and private freight terminals (with PCCM and PCОМ approval.)
    • Agreement validity for 35 years (or the period the rakes are operational whichever occurs earlier).

    Engine-On-Load Scheme

    • The scheme's objective is to enhance utilization of rolling stock and facilitate timely freight train clearance from sidings/terminals.
    • Train engines remain available during loading/unloading, working immediately after completion.
    • Siding owners must opt for the EOL operations.
    • Free time for loading/unloading is lower than normal.
    • Benefits to customers include exemption from engine hire & siding charges.

    Automobile Freight Train Operator (AFTO)

    • Allows logistics service providers and road transporters to invest in wagons and utilize rail transport.
    • Automotive traffic includes passenger cars, two/three-wheeler units, mini trucks, trailers, chassis, shell cars, and CKD automobiles.
    • Minimum rake (with 4% additional spares) requirement.
    • IR maintains the designated wagons.

    Private Freight Terminal Scheme (PFT)

    • TMC (Transport Management Company) is required to ensure land ownership, lease, licensing, for the establishment of private freight terminal.
    • Resting/canteen facilities is allowed, with TMC bearing costs.
    • PFTs exclusively handle traffic excluding coal and coke and are given 'C' priority, with additional fee for iron ore (D Priority).
    • Usage of all wagon types, van containers and private owned wagons is allowed within the PFT borders.

    General Purpose Wagon Investment Scheme (GPWIS)

    • For wagons capable of carrying various commodities (BOX, BOXN, BCN etc.).
    • Agreement period is equal to the life of the specific stock at induction date.
    • Wagon rakes have to be maintained by IR and distinctly indicated with colours.
    • 4% spares/ brake van is required.
    • A rebate of 10% is granted on the base freight of wagons.
    • ERR calculated, and only those circuits with ERR at par or better than benchmark for the zones.
    • Rakes are available to operate between private sidings, terminals, PFTs, ICD's, ports, mines etc.

    Round the Clock Working

    • Railway terminals are operational from 6:00 AM to 10:00 PM.
    • DRM may introduce round-the-clock working on a case-by-case basis.
    • Basic facilities—drinking water, toilets, resting areas, sufficient lighting—are essential.
    • Areas with high traffic volume are prioritized.

    Concessions and Discounts

    • Short-lead concessions of 10-50% are provided for transportation.
    • Short-lead periods vary (0-50KM-50%; 51-75 KM-25%; 76-90KM-10%)
    • Terminal Access Charge Concession 50% for Container Train Operators is provided.
    • A 15% discount for empty container haulage.

    Steps to Increase Ease-of-Doing Business with Railways

    • Online payment system, enabling payment of various terminal fees through either FBD Portal, SBI payment, gateway etc.
    • Online payments for various charges available 24x7.
    • Business Developmental portal to provide tracking of consignments and applications/ waivers.
    • Registration electronically for wagon demand.
    • Electronic transmission of Railway Receipt.

    Steps to Increase Ease-of-Doing Business with Railways (Mini-rakes & other)

    • Mini-rakes are allowed without distance restrictions with surcharges applying to ranges 0-1000, 1000-2000, and Beyond 2000KM (5, 7.5, 10%)
    • Two points combinations of origin/destination enhanced to 500KM with surcharges (5%).
    • Relaxation in the lower limit to 10 wagons.

    Steps to Decrease Congestion at Terminals & other

    • No restrictions on booking at any terminal/goods shed.
    • Alternate goods shed policy to decongest, eliminate Terminal charges
    • Private freight and private siding policies are liberalized with no limitations on co-users.

    Development of Goods Sheds

    • Various factors including faster release of rakes, reduced detention, better turnaround, cordial relations with customers, increased tonnage/ revenue, expanded terminal capacity, and creation of value-added services are required.
    • Groupings of goods sheds are also introduced (more than 12 rakes per month—Group-1; 7-12 rakes per month—Group-2; < 7 rakes per month—Group-3)
    • Introduction of private investment for goods shed development to increase freight business as well as model share and private participation.
    • New Green and Brown Field Goods shed development is permissible.

    Funds for Development of Goods Sheds

    • Funds for maintenance of goods sheds (group 1: 30 lakhs-50 lakhs; group 2: 20 lakhs-30 lakhs; group 3:10 lakhs-15 lakhs).
    • Plan Heads 5300 (Passenger Amenities) are possibly to be used for developing goods shed facilities.
    • Development of a new plan head of “Goods Terminal Facilities is requested to maintain existing goods terminals.

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    Description

    Test your knowledge on freight regulations concerning loading commodities, subsidy schemes, and freight charges, particularly for fly ash. This quiz covers various aspects of freight transportation, from weight limits to financial incentives for freight forwarders.

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