wagon Leasing Scheme (WLS)

WAGON LEASING SCHEME (WLS)

1. Objective:-

i. To bring in wagons of new and better designs.

ii. To develop a strong wagon leasing market.

iii. To procure rolling stock according to demand of wagons.

2. Eligibility Criteria:-

a) Entity should be registered in India under the Companies Act, 1956.

b) At least 5 years’ experience of asset leasing business.

c) Net worth of at least 100crores.

3. Registration :-

a. Entity will be required to register itself with Ministry of Railway

b. Registration fee will be ₹.5 Crore, which is non-refundable.

c. Registration will be valid for 35 years

d. Validity of registration will extended without any charges subject to satisfactory performance.

e. Registration will be cancelled on the company becoming insolvent or on breaching contract.

4. Procurement of Wagons by WLC

a. Wagons can be procured directly from wagon manufactures or through imports.

b. Wagon also can be procured from AFTO, SFTO or end user.

c. Wagon must be according to RDSO standards.

d. Procurement of wagons will be allowed only with prior approval of Ministry of Railway.

e. Procurement of wagons would be in units of the standard rake along with 4% extra wagons and one brake van for maintenance.

f. Freight concessions to which investors are entitled under LWIS will be made available to lease holder. However, this benefit will not be given if wagons are procured in lease by operator.

5. Leasing Contracts

a. Wagon leasing contract will be bi-partite agreement between the WLC and the lease holder.

b. Railway will not have any responsibility or liability in respect of wagons leasing contract.

c. One copy of agreement should be given to IR.

d. The WLC will have the right of substitution of lease holder under intimation to Indian Railway.

e. On receipt of an advice of termination of the agreement by the WLC, IR shall cease to make such wagons available to the lease holder

f. Lease holder will pay Freight, Wharfage charges, stabling charges and other charges to IR.

g. Freight charges at class 100 will be collected by IR to move idle leased wagons.