Rates and Fares in Rail Transport
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Questions and Answers

If a railway is making changes to freight rates, what is the minimum time period that must be given before they can take effect, when no specific date is specified in the Board's circular?

  • 14 days (correct)
  • 12 months
  • 4 months
  • 7 months

    • What is the minimum distance for which station-to-station rates can be reduced for smalls traffic?

  • 150 KM
  • 1000 KM
  • 500 KM (correct)
  • There is no minimum distance

    • Which of the following commodities are NOT eligible for reduced station-to-station rates?

  • Iron Ore (correct)
  • Coal
  • Middlings
  • Petroleum

    • For what purpose can station-to-station rates be reduced?

    <p>To attract and retain traffic to rail. (B)</p> Signup and view all the answers

    Who has the authority to approve station-to-station rate quotes?

    <p>The General Manager (B)</p> Signup and view all the answers

    What is the maximum duration for which reduced rates can be quoted?

    <p>18 months (C)</p> Signup and view all the answers

    What is the minimum class of goods for which station-to-station rate reductions are allowed in wagonloads?

    <p>Class 80 (A)</p> Signup and view all the answers

    What is the minimum class of goods for which station-to-station rate reductions are allowed in Small traffic?

    <p>Class 150 (B)</p> Signup and view all the answers

    Which railway is responsible for quoting station-to-station rates when traffic involves multiple railways?

    <p>The railway on which the traffic originates (C)</p> Signup and view all the answers

    Which of the following is NOT a condition for station-to-station rate reduction?

    <p>The rate must be quoted for at least 18 months. (B)</p> Signup and view all the answers

    What is the main consideration for reducing station-to-station rates?

    <p>Increasing revenue for the railway. (C)</p> Signup and view all the answers

    Which aspect of rates does the Rates Branch NOT deal with?

    <p>Assessment of passenger satisfaction (D)</p> Signup and view all the answers

    What authority does the Central Government have under the Railways Act, 1989 regarding rates?

    <p>To fix rates for passengers and goods (B)</p> Signup and view all the answers

    Which of the following is included in the responsibilities of the Rates Branch?

    <p>Compilation and maintenance of Rate Registers (A)</p> Signup and view all the answers

    What kind of rates can the Central Government fix according to the Railways Act?

    <p>Rates for any part of the railway and different classes of goods (A)</p> Signup and view all the answers

    Which document type is NOT associated with the Rates Branch responsibilities?

    <p>Passenger feedback forms (D)</p> Signup and view all the answers

    Under which section of the Railways Act is the power to classify or re-classify goods vested in the Central Government?

    <p>Section 31 (D)</p> Signup and view all the answers

    What do the conditions set by the Central Government concerning rates entail?

    <p>They specify the conditions under which rates apply (B)</p> Signup and view all the answers

    What document contains the classification of goods and tariffs for Indian Railways?

    <p>Indian Railway Conference Association Goods and Coaching Tariffs (C)</p> Signup and view all the answers

    What action should the originating Railway take for a new product not classified in the Goods Tariff?

    <p>Fix a tentative classification and seek approval from the Railway Board. (A)</p> Signup and view all the answers

    What is the role of the Railway Administration regarding minimum weight conditions?

    <p>They must conduct test weighments before proposing a revision. (D)</p> Signup and view all the answers

    Under what circumstances can station to station rates be quoted?

    <p>When there is justification to quote between specific points for goods and parcel traffic. (D)</p> Signup and view all the answers

    What is the first step taken by the originating Railway when a new product is booked?

    <p>Fix a tentative classification for the product. (D)</p> Signup and view all the answers

    What must be done if a Railway Administration finds that minimum weight conditions for a commodity need revision?

    <p>Conduct test weighments and refer the findings to the Railway Board. (D)</p> Signup and view all the answers

    Which section of the Railways Act is referenced regarding quoting station to station rates?

    <p>Section 32 (D)</p> Signup and view all the answers

    What remains valid for traffic booked from stations on the originating Railway?

    <p>Tentative classifications until the Railway Board provides final classifications. (A)</p> Signup and view all the answers

    What should be done for a new product offered for booking if it is not classified?

    <p>Fix a tentative classification and refer to Railway Board. (A)</p> Signup and view all the answers

    What is the legal basis for Railway Administrations to charge lump sum rates for carriage of commodities?

    <p>Section 32 of the Railways Act, 1989 (D)</p> Signup and view all the answers

    What defines a 'lump sum rate'?

    <p>A rate mutually agreed upon between the railway administration and the consignor (C)</p> Signup and view all the answers

    How does a lump sum rate differ from a normal tariff rate?

    <p>Lump sum rates can be higher than normal tariff rates, depending on the special services provided. (D)</p> Signup and view all the answers

    What is the recommended frequency for Railway Administrations to review statistics on traffic moving at reduced rates?

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

    What information should be provided to the Railway Board at the end of each month regarding special rates?

    <p>Details of any changes made to existing special rates, including the original and new rates (D)</p> Signup and view all the answers

    What is the main purpose of maintaining statistics on traffic moving at reduced rates?

    <p>To identify potential areas for improvement in the Railway's pricing and service strategies (D)</p> Signup and view all the answers

    What does the phrase 'Quantum of Earnings' refer to in the table provided?

    <p>The total revenue generated from goods transported at a specific rate (A)</p> Signup and view all the answers

    What is the significance of the 'Difference' column in the provided table?

    <p>It reflects the potential loss in revenue due to the use of reduced rates compared to normal rates (B)</p> Signup and view all the answers

    Which of the following is NOT explicitly mentioned as a detail that should be included in the monthly report to the Railway Board?

    <p>Impact of special rates on the overall profitability of the Railway Administration (A)</p> Signup and view all the answers

    Based on the context, what can be inferred as the primary motive behind the Railway Administration's provision of special rates?

    <p>To cater to the specific needs of certain consignors, such as those with large volumes of goods (A)</p> Signup and view all the answers

    If a Railway Administration discovers that the minimum weight conditions for a specific commodity require revision, what is the first action they must take?

    <p>Conduct test weighments to gather evidence for the proposed changes. (C)</p> Signup and view all the answers

    When a new product seeking transportation is introduced, and its classification is not present in the Goods Tariff, what is the originating Railway's role?

    <p>Develop a provisional classification, initiate booking, and simultaneously request Railway Board approval of the provisional classification. (C)</p> Signup and view all the answers

    When a new product is booked for transportation and its classification is not yet established in the Goods Tariff, what is the status of the provisional classification assigned by the originating Railway?

    <p>The provisional classification is effective for all subsequent bookings of the same product until the Railway Board approves a permanent classification. (D)</p> Signup and view all the answers

    What is the role of the Railway Administration concerning the standard minimum weight conditions?

    <p>They are responsible for proposing revisions to these conditions, but final approval rests with the Railway Board. (B)</p> Signup and view all the answers

    Which of the following is NOT a condition for quoting station-to-station rates?

    <p>The stations involved are on different railway lines. (B)</p> Signup and view all the answers

    In the context of the provided information, what is the primary consideration for reducing station-to-station rates?

    <p>The volume of freight being transported between the specific stations. (B)</p> Signup and view all the answers

    What document contains the standardized minimum weight conditions for wagon load rates?

    <p>The Indian Railway Conference Association Goods Tariff (currently in force). (A)</p> Signup and view all the answers

    What is the primary function of the Rates Branch?

    <p>Determining and regulating rates and fares for various categories of goods and passengers. (C)</p> Signup and view all the answers

    In which of the following situations would station-to-station rates be permitted for goods traffic?

    <p>When the traffic involves a break of gauge transhipment. (C)</p> Signup and view all the answers

    What is the minimum distance for which station-to-station rates can be reduced for trainload/wagonload traffic?

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

    Which of the following commodities is NOT eligible for a reduction in station-to-station rates?

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

    In the context of station-to-station rates, what are 'incremental costs'?

    <p>The additional cost incurred by the railway for moving extra traffic. (C)</p> Signup and view all the answers

    Which of the following statements best describes the purpose of reducing station-to-station rates?

    <p>To encourage the use of railways for transporting goods. (D)</p> Signup and view all the answers

    Which authority is responsible for approving quotations of station-to-station rates?

    <p>General Manager and FA &amp; CAO (C)</p> Signup and view all the answers

    What is the legal basis for the Central Government to fix rates for passenger and goods transportation on Indian Railways?

    <p>Section 30 of the Railways Act, 1989 (A)</p> Signup and view all the answers

    Which of the following is NOT directly mentioned as a subject dealt with by the Rates Branch?

    <p>Determining the cost of construction of new railway lines (B)</p> Signup and view all the answers

    If a railway is considering providing station-to-station rate reductions for a specific commodity, what is the maximum length of time for which these reduced rates can be quoted?

    <p>18 months (A)</p> Signup and view all the answers

    Based on the provided text, what is the main authority responsible for classifying goods for the purpose of determining carriage rates?

    <p>The Central Government (C)</p> Signup and view all the answers

    When a station-to-station rate is quoted for traffic that involves multiple railways, which railway is responsible for quoting the rate?

    <p>The railway on which the traffic originates. (C)</p> Signup and view all the answers

    What is the primary purpose of 'Rate Registers', as mentioned in the text?

    <p>Compiling and storing information related to rates and fares (A)</p> Signup and view all the answers

    Which of the following falls under the category of 'other charges incidental to or connected with carriage' as defined by Section 30 of the Railways Act, 1989?

    <p>Demurrage charges for delayed loading and unloading of goods (B)</p> Signup and view all the answers

    What is the significance of the 'Railway Tariffs' document in relation to the Rates Branch?

    <p>It contains the detailed classification of goods and the corresponding rates for their carriage (D)</p> Signup and view all the answers

    What specific power is vested in the Central Government by Section 31 of the Railways Act, 1989 regarding goods transportation rates?

    <p>Classifying and reclassifying goods for the purpose of applying different rates (C)</p> Signup and view all the answers

    What should a railway authority do when applying for a rate quotation for goods and coaching traffic?

    <p>Indicate the conditions regarding treatment of goods (D)</p> Signup and view all the answers

    What should happen if the Board’s Circular/Notification specifies an immediate effect for rate changes?

    <p>The change takes effect immediately upon issue (B)</p> Signup and view all the answers

    Which detail is NOT required to be specified in the particulars of the case for special rates?

    <p>Construction materials involved (A)</p> Signup and view all the answers

    What is the minimum notice period for a change in rates, when no date is specified in the Board's Circular?

    <p>14 days (B)</p> Signup and view all the answers

    In the case of a quotation for rates, which factor must be clear at the time of issuance?

    <p>The date of change of the rate (C)</p> Signup and view all the answers

    Under what circumstance can a Railway quote reduced rates for livestock traffic?

    <p>With prior approval from the Railway Board (B)</p> Signup and view all the answers

    What condition is required for the reduction of wagonload station to station rates for parcel traffic?

    <p>The rate must meet the commercial considerations criteria (A)</p> Signup and view all the answers

    What should happen when the Railway Administration identifies the need to revise minimum weight conditions for a commodity?

    <p>Submit the proposal to the Railway Board within a month (C)</p> Signup and view all the answers

    What is the maximum time frame allowed for reduced rates to be quoted?

    <p>Eighteen months (A)</p> Signup and view all the answers

    What financial concurrence is necessary before proposing a reduction in rates for traffic originating from a Railway?

    <p>Concurrence from the FA &amp; CAO of the originating Railway (B)</p> Signup and view all the answers

    Which type of traffic is explicitly excluded from considerations for reduced rates as per the outlined regulations?

    <p>Traffic in petroleum and hydrocarbons (C)</p> Signup and view all the answers

    What is the major restriction placed on the reduction of rates based on commercial considerations?

    <p>They must be reported to the Railway Board immediately (B)</p> Signup and view all the answers

    Which type of traffic does not require prior intimation of quoted rates to the Railway Board?

    <p>Goods traffic in wagonloads (A)</p> Signup and view all the answers

    What defines a scenario where the Railway Board's prior approval is not required for quoting reduced rates?

    <p>If the rates remain within established rate reducing powers (B)</p> Signup and view all the answers

    Which of the following does NOT fall under the rate-reducing powers of the Railway as described?

    <p>International freight services (A)</p> Signup and view all the answers

    What is the maximum duration that reduced rates can be quoted for?

    <p>18 months (C)</p> Signup and view all the answers

    Which of the following is NOT included in the conditions for quoting station-to-station rates?

    <p>Prior approval from the Central Government. (C)</p> Signup and view all the answers

    What is the primary legal basis for the Central Government's authority to set rates for passenger and goods transportation on Indian Railways?

    <p>The Railways Act of 1989 (B)</p> Signup and view all the answers

    Which section of the Railways Act of 1989 empowers the Central Government to classify or reclassify goods for rate determination?

    <p>Section 31 (A)</p> Signup and view all the answers

    If a railway wants to change rates payable by the public, what is the minimum time period they must allow before the change takes effect when no specific date is mentioned in the Board's circular?

    <p>14 days (B)</p> Signup and view all the answers

    What specific document provides a comprehensive classification of goods and their corresponding tariffs for Indian Railways?

    <p>Goods Tariff (D)</p> Signup and view all the answers

    How can railway administrations implement changes to rates?

    <p>Through a circular, notification or letter issued by the Railway Board (D)</p> Signup and view all the answers

    Which of the following is NOT a responsibility of the Rates Branch as described in the content?

    <p>Establishing track maintenance schedules (C)</p> Signup and view all the answers

    In which scenario would a change in rates take effect immediately?

    <p>When the Board's circular mentions 'with immediate effect' (B)</p> Signup and view all the answers

    What is the primary legal basis for the Railway Administration's ability to charge lump sum rates for the carriage of goods?

    <p>It is derived from the Railways Act's general provisions concerning rate setting (B)</p> Signup and view all the answers

    What is the primary purpose of publishing the designation of the authority responsible for providing rate information?

    <p>To ensure that all stakeholders are aware of the process for obtaining rate information (C)</p> Signup and view all the answers

    What information should be included in a quotation for a rate?

    <p>The rate, date of quotation, and any applicable conditions such as minimum weight (C)</p> Signup and view all the answers

    When a new product is introduced for transportation and its classification is not found in the Goods Tariff, what is the initial action taken by the originating Railway?

    <p>Provisionally classifying the product based on its characteristics. (A)</p> Signup and view all the answers

    What is the minimum distance for which station-to-station rates can be reduced for goods traffic in trainloads/wagonloads?

    <p>150 KMs (C)</p> Signup and view all the answers

    What is the minimum distance for which station-to-station rates can be reduced for goods traffic in Smalls?

    <p>500 KMs (D)</p> Signup and view all the answers

    Which of the following is NOT a condition for quoting station-to-station rates for parcel traffic?

    <p>The rate must be quoted for traffic moving more than 500 KMs. (A)</p> Signup and view all the answers

    When proposing reduced rates, what must be obtained prior to implementing them?

    <p>Approval from the Railway Board (A)</p> Signup and view all the answers

    What does the term 'lump sum rate' refer to, as defined in the Railway Act, 1989?

    <p>A rate mutually agreed upon between the railway administration and the consignor for carriage of goods, including any related services. (A)</p> Signup and view all the answers

    Which railway is responsible for obtaining financial concurrence for reduced rates?

    <p>The Railway on which the traffic originates (B)</p> Signup and view all the answers

    According to the text, how frequently should railways review their statistics on traffic moving at reduced rates?

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

    What is the primary consideration for proposing reduced rates?

    <p>Attracting and retaining traffic to rail. (C)</p> Signup and view all the answers

    For which type of traffic is reduced station-to-station rates NOT permitted?

    <p>Passenger traffic (A)</p> Signup and view all the answers

    What type of information should be reported to the Railway Board at the end of each month regarding special rates?

    <p>Details of rates quoted or changes to existing special rates. (B)</p> Signup and view all the answers

    What legal authority allows the Railway Administration to charge lump sum rates for carriage of commodities?

    <p>Section 32 of the Railways Act, 1989 (D)</p> Signup and view all the answers

    Which entity is responsible for reporting reduced rates to the Railway Board?

    <p>The originating Railway (B)</p> Signup and view all the answers

    What is the primary purpose of providing special rates by the Railway Administration?

    <p>To attract more traffic to the railways. (A)</p> Signup and view all the answers

    What aspect of rates does the 'Quantum of Earnings' column in the table refer to?

    <p>The revenue generated from goods transported at reduced rates. (D)</p> Signup and view all the answers

    Study Notes

    Rates and Fares

    • Important subjects include passenger fares, freight rates, concession tickets, and goods classification.
    • Conditions related to carriage (risk, minimum weights, packing) are also covered.
    • Quotation and maintenance of rate registers, rate adjustments, and cases regarding the Railway Rates Tribunal are key aspects.
    • Railway tariffs, distance tables, and departmental notifications are significant considerations.
    • Station-to-station rates and lump sum rates are also part of this branch.

    Power to Fix Rates

    • The Central Government has the power to fix passenger and freight rates, according to Section 30 of the Railways Act of 1989.
    • Different rate classifications are possible for various goods types.
    • The conditions under which these rates apply are specified in the order.
    • The government can also fix incidental charges (demurrage, wharfage) for the whole or part of the railway network.

    Classification of Goods

    • The power to classify and reclassify goods for rate determination is vested in the Central Government, according to Section 31 of the Railways Act of 1989.
    • Rates and charges for various goods (parcels, luggage, passengers) are published in the Indian Railway Conference Association (IRCA) Goods and Coaching Tariffs.
    • New commodities not listed in the Goods Tariff may use tentative classifications, pending Railway Board approval.

    Minimum Weight Conditions

    • Standard minimum weight conditions for wagon loads are detailed in the current IRCA Goods Tariff.
    • Railway administrations can propose revisions to minimum weights after conducting test weighments and providing justification (e.g., if needed).

    Quotation of Station-to-Station Rates

    • Station-to-station rates are permitted based on justification, as per Section 32 of the Railways Act of 1989.
    • Proposals require General Manager (GM) and FA & CAO approval.

    Conditions for Reduced Rates

    • Reductions in rates are restricted for certain commodities—class 80 and below in train/wagonloads; class 150 and below in small goods; coal, coal shale, coke, lignite, patent fuel and livestock; petroleum and other hydrocarbon oils (dangerous and non-dangerous).
    • Rates cannot fall below those set for class 80 trainloads/wagonloads, or 150 for small loads.
    • Reductions based on commercial considerations are allowed, to increase net profit.
    • Rates cover incremental costs associated with increased traffic.

    Station-to-Station Rates for Parcel Traffic

    • Railway administration can quote lump sum rates for parcel traffic (G.P.A. Scale, CP-1, CP-2), with specific conditions: the rate cannot fall below the CP-2 rate less 10%.
    • Quotation is for commercial reasons.
    • Proposals are presented to the Railway Board for information.

    Quotation of Reduced Rates

    • Railway Board approval is required if reduced rates fall below previously approved limits, or are for reasons other than commercial ones (e.g., livestock, coaching traffic (except parcels), certain goods traffic in specific circumstances).
    • Reduced rates for specific goods traffic in trainloads/wagonloads moving under 150 KMs or small goods under 500 KMs require Railway Board authorization.

    Notice of Rate Enhancement

    • Rate changes are announced via a board circular, notification, or letter, specifying the effective date.
    • Modifications can take effect 14 days after announcement, unless stated otherwise.

    Railway Rates Tribunal

    • Procedures, rules, and powers of the Tribunal are detailed in Chapter VII of the Railways Act of 1989.
    • Thorough case preparation and consistent Tribunal updates are crucial. Eminent lawyers are vital for important cases.

    Eminent Lawyers for Cases

    • Hiring experienced legal professionals (e.g., Advocates-General) is essential for cases involving complex financial and legal principles.

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    Indian Railway Rates and Fares PDF

    Description

    Explore the critical aspects of rates and fares in rail transport, including passenger and freight rates, conditions for carriage, and tariff adjustments. This quiz covers essential topics such as rate registers, distance tables, and governmental powers under the Railways Act of 1989. Test your knowledge of this important branch of transport economics.

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