Liberalized Automatic Freight rebate scheme

Liberalized Automatic Freight rebate scheme for traffic loaded in Traditional Empty Flow Direction:

1. Objective:

i. To garner the additional freight revenue, by suitable pricing mechanism by giving automatic freight rebate from the FOIS system for the traffic booked in the inter-zonal and inter-zonal traditional empty flow direction.

ii. To reduce the empty running ratio on Indian Railways.

2. Incentive:

i. For all traffic booked on the notified OD pair under Traditional empty flow direction: -

Freight for train load, class = LR1, Freight for wagon load = Class-100

(Irrespective of Terminal, commodities and customer)

The discounted freight will be charged from the first rake. (Exception: - commodities given in the Bracket in O-Day Pair.)

ii. Freight for commodities given in the Bracket in O-Day Pair:

Freight for train load, class = LR1, Freight for wagon load = Class-100

This discounted freight rates will be given only when the monthly benchmark is crossed. Benchmark will be the total NTKM of that commodity for the corresponding month of the previous year.

iii. The booking of traffic from originating point to an intermediate point (only one) of the identified empty flow stream is permitted. The intermediate point should fall in the normal route of identified empty flow.

The freight shall be charged at class = 100 for train load, Class-110 for wagon load.

[2 (ii.) and 2 (iii.) have been kept is abeyance till further advice.]

3. Permitted Terminal: - All goods sheds, siding, port and PFTs etc.

4. Restricted Commodities: -

i. Cole & Coke;

ii. Commodities under Class LR2 and LR3;

iii. Iron Ores (all types);

iv. RMC traffic

v. Military traffic

vi. POL traffic

5. Lead restriction: -Traffic of 200 km or less distance is not allowed.

6. Permitted wagons: -

a. Open wagon BOXN group

b. Covered wagon BCN & BCNHL Group

c. Flat Wagon and Mixed Steel Rakes - BRN-Group, BOST-Group and CONCORD.

7. Salient Features:

i. The party does not have to apply for this scheme; the FOIS shall automatically calculate the charge rent automatically.

ii. The minimum offer of the traffic shall be half of the permitted stock.

Half rake for different stock is as under:

iii. Train load charging is subject to fulfillment of train load conditions.

iv. Under this scheme, book traffic will not be re-booked, diverted or given delivery short of destination.

A. However, diversion and delivery short of destination is permitted on account of force majeure conditions viz. Act of god, act of war and act of public enemies etc. But this shall be permitted with the approval of CCM and COM of the Zonal Railway who shall record their reasons in writing.

B. In case of such traffic is required to re-booked or diverted or given delivery short of destination, then, normal freight will be charged for the entire distance at the applicable class rate of commodity.

v. Rake loaded under normal tariff shall not be rebooked under this scheme. However rebooking at normal tariff shall continue to be permitted as per extant rules.