WLC Lease Agreement Responsibilities Quiz
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Questions and Answers

What is the responsibility of WLC regarding the insurance of the leased Wagons?

  • WLC must secure insurance only if requested by the Lessee.
  • WLC is not responsible for securing any insurance.
  • WLC must acquire insurance only for third-party liabilities.
  • WLC is responsible for securing insurance against damage and third-party liabilities. (correct)

Under what condition does WLC not incur stabling charges?

  • When the Wagons are moved from one terminal to another by WLC.
  • When the Wagons are in the custody of IR.
  • When the stabling is due to reasons attributable to Lessee.
  • When the Wagons are held in private sidings with valid agreements. (correct)

What is the consequence of WLC's default in payment to IR?

  • IR will terminate the lease immediately.
  • IR must notify WLC before taking any action.
  • IR will impose fines based on the amount due.
  • IR may exercise a lien on the leased Wagons. (correct)

What specifically triggers the payment of stabling charges according to the given content?

<p>Failure to accept the consignment at the terminal by WLC/Lessee. (A)</p> Signup and view all the answers

Who resolves disputes regarding the agreements made with the Zonal Railway?

<p>An Arbitrator nominated by the General Manager of the Zonal Railway. (D)</p> Signup and view all the answers

What is the primary objective of the wagon leasing scheme?

<p>To develop a strong wagon leasing market with better wagon designs (D)</p> Signup and view all the answers

Which of the following best describes a 'Lessee'?

<p>An entity that leases wagons from a Leasing Company (B)</p> Signup and view all the answers

What defines High Capacity Wagons (HCW)?

<p>Wagons with a payload 2.0 tonnes higher on designated routes (A)</p> Signup and view all the answers

Which term is used for wagons waiting for a Lessee's nomination?

<p>Idle Leased Wagons (D)</p> Signup and view all the answers

What is the role of a Wagon Leasing Company (WLC)?

<p>To procure and lease railway wagons to authorized entities (D)</p> Signup and view all the answers

Special Purpose Wagons (SPW) are specifically designed for what?

<p>Rail transportation of specific commodities (D)</p> Signup and view all the answers

Which entity is not involved in the wagon leasing system?

<p>Private real estate developers (A)</p> Signup and view all the answers

Who provides the Concession to Operators for running trains on the IR network?

<p>The Ministry of Railways (A)</p> Signup and view all the answers

What is the main aim of the Liberalized Wagon Investment Scheme (LWIS)?

<p>To promote private investment for the procurement of wagons. (B)</p> Signup and view all the answers

Which of the following entities are eligible to lease wagons?

<p>Registered companies in India with asset leasing experience. (C)</p> Signup and view all the answers

What is the minimum net worth required for an applicant to become a Wagon Leasing Company (WLC)?

<p>100 Crore. (A)</p> Signup and view all the answers

For how long is the registration of a Wagon Leasing Company (WLC) valid?

<p>35 years. (A)</p> Signup and view all the answers

What happens if a Wagon Leasing Company (WLC) is found to be insolvent?

<p>Its registration is summarily cancelled. (D)</p> Signup and view all the answers

What types of wagons can be leased to end users under the scheme?

<p>High Capacity Wagons and Special Purpose Wagons. (C)</p> Signup and view all the answers

Which condition applies to the procurement of wagons by a WLC?

<p>Prior administrative approval from MOR is required. (D)</p> Signup and view all the answers

Which of the following types of wagons is NOT explicitly mentioned for leasing?

<p>Liquid Tank Wagons. (A)</p> Signup and view all the answers

What is the registration fee for an entity to register as a WLC?

<p>Rs. 5 Crore. (B)</p> Signup and view all the answers

What type of maintenance spare percentage is required in the wagon procurement process?

<p>4%. (D)</p> Signup and view all the answers

What condition must be met before the wagons are inducted into service?

<p>They must undergo mandatory safety and quality inspections. (A)</p> Signup and view all the answers

Which entity is NOT allowed to sub-lease the wagons held by the Lessee?

<p>Any third agency (D)</p> Signup and view all the answers

What must the Wagon Leasing Contract include to certify ownership of the wagons?

<p>Explicit rights of the WLC to terminate the lease (B)</p> Signup and view all the answers

What happens when the WLC terminates the lease for the wagons?

<p>IR holds the idle leased wagons awaiting further nomination. (C)</p> Signup and view all the answers

Which entity is primarily responsible for claims and compensation regarding the wagons?

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

What is the nature of the agreements in Wagon Leasing Contracts?

<p>They are bi-partite agreements between WLC and the Lessee. (D)</p> Signup and view all the answers

What is required for WLC to purchase wagons from operators?

<p>Approval from the Ministry of Railways is required. (C)</p> Signup and view all the answers

What type of change can the WLC make regarding the Lessee on approved routes?

<p>Substitute the Lessee under intimation to IR. (A)</p> Signup and view all the answers

Who is liable for freight and other charges claimed by IR?

<p>Lessee of the Wagons (A)</p> Signup and view all the answers

What will happen to the brake van of the rake purchased by WLC?

<p>It will be added to the general pool of IR brake vans. (C)</p> Signup and view all the answers

Flashcards

IR

The Indian Railways Administration responsible for managing the country's rail network.

MOR

The Ministry of Railways, part of the Government of India, responsible for overseeing the country's railways.

End User

Customers who utilize the rail service to transport their goods, whether they are producers or consumers.

Operators

Third-party logistics companies contracted by the IR to operate container trains on its network, providing services to multiple customers.

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WLC

A leasing company dedicated to obtaining and providing railway wagons to other businesses authorized to operate on the Indian Railways network.

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Lessor

A Wagons Leasing Company (WLC) that leases out railway wagons to another entity.

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Lessee

Entities, including End Users or Operators, who use leased wagons from a Lessor.

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Special Purpose Wagons (SPW)

Wagons specifically designed for hauling a particular type of commodity or group of commodities.

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Liberalized Wagon Investment Scheme (LWIS)

A scheme introduced by the Ministry of Railways in 2008 to encourage private investment in the procurement of different types of wagons.

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High Capacity Wagons (HCW)

High Capacity Wagons are designed to carry larger quantities of cargo than standard wagons.

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Wagons for Container movement

These wagons are specifically designed for transporting containers, often used in intermodal transportation.

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Eligibility Criteria for WLC

The eligibility criteria for becoming a Wagon Leasing Company (WLC) require the company to meet certain conditions.

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Registration of WLC

To operate on the Indian Railways network, a Wagon Leasing Company (WLC) must register with the Ministry of Railways.

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Procurement of Wagons by WLC

Wagon Leasing Companies (WLC) can procure wagons directly from manufacturers or through imports, but need prior approval for any procurement.

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Freight Concessions under LWIS

Under LWIS, freight concessions can be given to lessees of the wagons, but not to operators who lease wagons for their service.

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Wagon Leasing Company (WLC)

Designated by MOR, these are companies authorized by the Indian Railways to lease out railway wagons to other entities, including End-Users and Operators.

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Wagon Leasing Contracts

Agreements signed between the WLC (Lessor) and the Lessee that specify the terms and conditions for leasing railway wagons.

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WLC's Right of Substitution

The right of the WLC to replace the existing lessee on the agreed-upon route or specific circuit, after notifying the IR.

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IR's limited responsibility for leased Wagons

This indicates the IR's stance on the responsibility for Wagons leased by WLC, whereby they are not responsible for the lease but will facilitate actions according to the agreed-upon terms.

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WLC’s Sole Right to Terminate Lease

The WLC, as the owner of leased Wagons, has the sole right to terminate the lease with the Lessee, without needing IR's involvement in the process.

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Prohibition on Sub-leasing of Wagons

Strict regulation prohibiting the Lessee from sub-leasing rented Wagons to a third party, requiring the Lessee to directly utilize the leased Wagons.

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Lessee's Responsibility for Charges

The Lessee is responsible for paying all charges levied by the IR in respect of freight, demurrage, wharfage, and stabling, encompassing any other charges related to the services provided by the IR.

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IR's Liability for Claims

The IR's liability for claims and compensation is governed by the specific provisions of the Railways Act concerning this matter.

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IR's Lien on Leased Wagons

The Indian Railways (IR) has the right to hold leased wagons if the Wagons Leasing Company (WLC) fails to pay for their use.

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IR's Lien on Consignment

IR can take the goods loaded in leased wagons if the Lessee, who is using the wagons, doesn't pay IR.

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Stabling Charges for Leased Wagons

The Wagons Leasing Company (WLC) is responsible for paying for the storage of idle leased wagons when they're held in IR's custody.

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Freight Charges for Leased Wagon Movement

If the WLC asks IR to move idle leased wagons, the WLC has to pay freight charges to IR.

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Dispute Resolution for WLC-IR Agreements

All disputes between the Wagons Leasing Company (WLC) and the IR are resolved by an arbitrator chosen by the General Manager of the Zonal Railway.

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Study Notes

Freight Marketing Master Circular/WLS/2014/0

  • Objective: Develop a strong wagon leasing market, particularly with better wagon designs. Establishes policy for wagon leasing and operation on Indian Railways.

  • Definitions & Abbreviations:

    • IR: Railway Administration
    • MOR: Ministry of Railways
    • End User: Rail customers
    • Operators: Third-Party Logistics Companies
    • WLC: Wagon Leasing Company
    • Lessor: Company leasing wagons
    • Lessee: End Users or Operators under Concession
    • HCW: High Capacity Wagons (payload at least 2 tonnes higher)
    • SPW: Special Purpose Wagons (for specific commodities)

  • Types of Wagons: High Capacity Wagons, Special Purpose Wagons, Container Wagons

  • Eligibility Criteria for WLC (Wagon Leasing Company):

    • Registered in India (Companies Act, 1956)
    • At least 5 years experience in asset leasing
    • Minimum net worth of 100 Crore (subsidiaries must meet 25/50% net worth criteria)

  • Registration of WLC:

    • One-time non-refundable registration fee of Rs. 5 Crore.
    • 35-year validity (extendable based on performance)
    • Cancellation for insolvency or breach of contract.

  • Procurement of Wagons by WLC:

    • Directly from manufacturers or through imports
    • Units based on pre-determined block rake composition, with spares and brake vans
    • Benefits under the Liberalized Wagon Investment Scheme (LWIS) for Lessees
    • Mandatory safety and quality inspections by authorized agencies

  • Leased Wagons:

    • Bi-partite agreements between WLC and Lessee
    • Responsibility for wagon lease contracts is with Lessee and WLC

  • Sub-leasing: Not permitted by Lessee

  • Liabilities:

    • IR is responsible for claims and compensation per relevant provisions.
    • Lessee is responsible for related payments to IR.
    • WLC is responsible for Wagons, insurance, and related costs.

  • Maintenance of Wagons: IR will handle maintenance under agreed contracts.

  • Lien: IR can exercise lien on leased wagons due to defaulting payments (by the WLC or Lessee).

  • Dispute Resolution: Disputes are resolved by an Arbitrator nominated by the Zonal Railway.

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Related Documents

Freight Marketing Master Circular (WLS) 2014 PDF

Description

Test your knowledge about the responsibilities of the WLC regarding the insurance of leased wagons and the conditions under which they incur or avoid stabling charges. Explore the consequences of default payments and understand the dispute resolution process with the Zonal Railway. This quiz is essential for anyone involved in wagon leasing agreements.

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