Liberalized Wagons Investment Scheme (LWIS)

LIBERALIZED WAGONS INVESTMENT SCHEME (LWIS):-

This scheme is introduced by Ministry of Railway which will supersede, Wagon Investment Scheme and Own Your Wagon Scheme. Consumers who have invested in old schemes can avail their benefits till the duration of agreements.

1. Objective -

i. To encourage procurement of wagons through Private Public Partnership.

ii. To enhance carrying capacity of Indian Railways.

iii. To increase Railways earnings.

iv. To attract expected traffic in future.

2. Procurement of Wagons - Following investors can procure wagons under this scheme-

a) WLC – Wagon leasing company –For leasing to end user.

b) End users – Will invest for their own traffic only.

3. Type of Wagons :-

a) High capacity wagons(HCW) - Wagons with payload which are at least 2 tonnes higher than the payload of extent similar wagons for 22.9 or 25 tonne axle load routes.

b) Special Purpose Wagon (SPW) – Wagons designed for a specific commodity.

4. Restricted Commodities- Coal & Coke, Ores and Minerals.

5. Procedure for Procurement of Wagons:-

a. COM of the Concerned loading Railway should be contacted along with details of proposal including numbers of rakes required, type of wagons, commodity, loading station, destination station, closed circuit route etc.

b. After examination of the proposal, NOC should be issued within 10 days of receipt of application by COM.

c. Application along with NOC should be forwarded by Zonal Railway to Executive Director (Freight Marketing), Railway Board for approval.

d. On the basis of the approval of Railway Board an agreement will be signed between CCM and Investor.

e. Wagon should be procured in units of rakes with 4% maintenance spare and one brake van.

f. Wagon will be procured by customers directly from Wagon manufacturers or through import subject to compliance with design and specifications of RDSO.

g. A notification will be issued by CCM with details mentioning the concession, name of investor, number of wagons, name of commodity, approved circuits etc.

h. Rake should be procured within one year from the date of signing of agreement.

i. These wagons will not be included in general pool of IR. They will be known by the name of private investor only.

j. Loading in wagon procured under this scheme will be permitted only against indents registered by end user.

k. If the End Users does not place any indents, these wagons will remain idle in his premises. If these wagons are stabled in railway yards, stabling charges will be payable as notified.

6. Freight Concession

a. Investment in HCW, with a pay load of 2 tonnes more than the pay load of extent similar wagons will be eligible for a freight concession of 12% for a period of 20 year. For each additional tonne of pay load, an additional 0.5% of freight discount will be granted.

b. Freight concession of 15% will be granted for a period of 20 years for SPW.