Fly Ash / Bed Ash Loading - Freight Incentive schemes

 

Fly Ash / Bed Ash Loading 

Introduction and Background

The Railway Board has introduced a revised Freight Incentive Scheme specifically targeting the loading of Fly Ash and Bed Ash. 

Authority: CC No. 09 & 95 of 2020 and CC No. 219 of 2024 

Objective: 

The core objective of this scheme is to encourage additional loading of Fly Ash and Bed Ash and to enhance the utilization of rolling stock by offering targeted freight incentives.

                                            Fly Ash / Bed Ash Loading - Discount 

Type of Rolling Stock	Rate of Concession	Packing condition
Open Wagons	40% Discount on NTR of applicable classes	Bagged or Bulk or loose
Flat Wagons	40% Discount on NTR of applicable classes	Bagged only
Covered Wagons	To be charged at NTR of Class LR 1	Bagged only

Applicability Conditions

The 40% discount is applicable only when the entire rake is released, unloaded, emptied, and then back loaded at the same terminal. 

If empty rakes are supplied from other terminals, the discount is limited to 20% only.

Floor Rate Policy

There will be no floor rate for concessions under this scheme. The applicable chargeable freight will reflect the full discount of 40% or 20% on the NTR of the respective class.

Permitted Terminals

The scheme is applicable to all terminals, ensuring wide coverage and implementation flexibility.

Concurrent Concession

The following can be availed simultaneously:
- Freight concessions for traffic moving to/from the North East Region.

- In case of traffic booked in the TEFD (Traditional Empty Flow Directions) stream, the lower of the two NTRs will be charged.

Lead Restriction

There will be no restriction on the lead distance, giving flexibility to shippers.

Processing Procedure

Customers need not apply separately to avail these concessions. The benefit will be automatically granted via TMS (Terminal Management System), depending on the features of the scheme.

Key points for MCQ - Loading of Fly Ash / Bed Ash:

1. In Open Wagons - 40% discount on NTR - Packing condition is bulk or loose or bagged 

2. In Flat Wagons - 40% discount on NTR - Packing condition is Bagged only 

3. In covered Wagons - charged at class NTR of LR 1 - Packing condition is Bagged only 

4. NTR stands for Normal Tariff Rate

5. Applicable for all terminals

6. Discount is limited to 20%, if empty rakes are supplied from other terminals

7. No lead restriction

8. Concurrent concession available for freight to and from for North East region

9. In case of TEFD, the lower of two NTRs will be charged

10. TEFD stands for Traditional Empty Flow Direction

11. TMS stands for Terminal Management System

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Freight Incentives - March 2025 - Titbits

 

Freight Incentives - March 2025 - Titbits

• Source: Important policy measures for freight customers issued by Rates branch (Commercial Dept), Railway Board (Web page of Traffic Commercial Directorate of IR Website) & www.fois.indianrailways.gov.in 

• Freight Incentive schemes are 1. Liberalised Automatic Freight Rebate Scheme for traffic loaded in TEFD (Traditional Empty Flow Direction) 2. MGR - Merry Go Round, 3. Concession on Short Lead Traffic, 4. STS (Station To Station) Rates etc

• TEFD -Traditional Empty Flow Direction -  Rates Circular No. 9 of 2024

• MGR - Merry Go Round - Concession on movement of coal traffic in closed circuit - Rates Circular No. 7 of 2016 - extended up to 30.04.2025

• Short lead concession -  up to 100 kms - Rates Circular 20 of 2016

• STS (Station To Station) Rates - Concession granted on incremental traffic over benchmark NTKM (Net Tonne Kilo Meter) - Rates Circular 15 of 2022

Transportation Product:

• Transportation Products - Consists of Block Rake, Mini Rake, Two / Multi Point Rake & Cargo Aggregator Transportation Produce - Rates Circular No. 3 of 2024

• Block Rake - Train carrying notified number of wagons for a single destination. 

• Mini Rake - Short rake composed of a lesser number of wagons than specified for a Block Rake. 

• Two / Multi Point Rake - Trains carrying Wagons destined to two or more than two destinations respectively. 

• Cargo transportation product - facilitates cargo aggregation and expands the commodity basket of Indian Railways. 

Commodity Classification:

• At present commodities have been classified in 19 different classes

• Important criteria for charging freight  - “What the commodity can Bear”.  The factors are transportation characteristics of different commodities like loadability, value of the commodity, raw or finished, essential commodities etc. 

• Authority: Goods Tariff No. 49 - Part I (vol.II) and Part II

PCC - Permissible Carrying Capacity (of Wagons) 

 

• PCC has been fixed for different routes based on permissible axle load for these routes and wagons both. 

• PCC = Chargeable weight of the Wagons  (for optimum utilisation of the carrying capacity of the Wagons) 

Dynamic Pricing Policy:

 

• Demand Management Charges includes Busy Season charge, Congestion charge, Development surcharge, Supplementary charge etc.

• It varies according to the Season, Routes, Economic activities. 

RORO - Roll On Roll Off

 

• A Service model  

• Loaded / Empty trucks similar to container / Automobile traffic drive in and off the bogies for transportation of various commodities by Rail 

• Door to Door service 

• Reducing the congestion on the Roads 

• RORO - Notified as a Commodity in Goods Tariff 

• Free time - 3 Hours (for Loading / Unloading)

• Authority: Rates Circular 17 of 2022 

DFC - Dedicated Freight Corridor: 

 

• DFCCIL (Dedicated Freight Corridor Corporation of India Ltd)  - granted the status of Railway Administration. 

• The Commercial Rules of IR  - applicable to DFCCIL  - mutatis mutandis like a Zonal Railway till IR is the sole operator. 

• To capture the new freight segment in Intra -  DFCCIL Traffic, the following measures have been taken:  

• Concessions

• Special Rates for Intra 

• Waiver of Demurrage / Wharfage

• RORO Movement 

Container Traffic: 

• Private Container operators  - permitted to handle their rakes at Railway owned Terminals by notifying as CRT - Container Rail Terminal, on payment of  TAC - Terminal Access Charge

• Guidelines are laid down for Free time, stacking charges, detention charges, Ground usage charges and waiver thereof. 

• Haulage charges  - Transportation of Containers in privately owned wagons by Rail - Two types of Rates 

1. FAK (Freight All Kinds) - Haulage charge per TEU (Twenty foot Equivalent Unit) - All commodities other than few notified in CCR

2. CCR - Container Class Rate - Few notified commodities 

• Haulage charges - Telescopic basis under Hub & Spoke system of movement.

 

• New Initiatives to promote Container Business are: 

1. Haulage charge for cube containers 

2. Haulage charge for Double stack Dwarf container, 

3. Round trip based charging in case of ultra short lead, etc.

Registration of Wagons:

• Customer can register demand for wagons on payment of WRF - Wagon Registration Fee

• WRF exemptions:  

• Premier customers (Gold & Silver card holders)

• Container Traffic 

• Military Traffic 

• Premium Indent scheme - facility of supply of Wagons on indicated date by the customer on collection of Premium charge. 

• e-RD - electronic Registration of Demand -  Registration of Demand for Wagons electronically. 

TMS - Terminal Management System: 

• Online Goods Balance Sheet 

• System based calculation of freight charges

• System based preparation of RR - Railway Receipt / Money Receipt / Demurrage & Wharfage bill / e CR - electronic Cash Remittance etc.

Sidings: 

 

• Two methods of freight charging: 

1. Up to serving station plus siding charge (movement between serving and siding) 

2. Through Distance basis 

• Siding charges - worked out on the basis of EHC - Engine Hour Cost and Average trip time for movement of Wagons / rake between serving station & siding. 

• EHC - notified by the RB on yearly basis for Diesel & Electric locomotives. 

• Through Distance basis - Freight  

•  Applicable for Block Rakes - going into the siding directly or indirectly with the Engine pulling or pushing.

• No detention to engines except for change of ends

• No separate shunting staff required exclusively for this purpose. 

• Freight is levied up to the buffer end of the siding / yard. 

Shunting Charge levied subject to:  

• Perform shunting operations in a siding. 

• Irrespective of the fact whether the siding is notified on through distance basis or otherwise. 

• On the basis of actual shunting time and EHC - Engine Hour Cost.  

Weighbridges: 

 

• All loading points are to be covered with Weighbridges. 

• Zonal Railways notify associate weighbridge and alternate associate weighbridge for each loading point. 

• Linked with FOIS - Freight Operations Information System. 

• Installation of Weighbridges by private parties. 

• Provision of pre-weighbin / Weightometer and Static Weighbridge with silo system at Private Sidings. 

Punitive charges: 

 

• Levied for Overloading.

• Exemption from mandatory Weighment for the following items subject to the fulfillment of the prescribed conditions are: 

1. Standard bags

2. HR/CR coil/sheets

3. Low density commodities like pet coke, met coke, nut coke, chuni, de-oiled cake

4. Empty container traffic

5. Containerised import traffic

6. Nepal bound traffic

7. Automobile wagons carrying motor vehicles 

Free time for Demurrage, Wharfage & Stabling charges and their waiver. 

 

• Demurrage charges - for detention of railway wagons beyond permissible free time. 

• Wharfage charges - for non removal of consignments at Railway premises beyond permissible free time

• Stabling charges - for detention of privately owned Wagons.  

Goods Shed: 

• Alternate Goods Shed - to incentivize the utilisation of the same, Non levy of Terminal charges for handling traffic at alternate Goods sheds.

• Notifying the Alternate Goods Shed - Zonal Railways are empowered.

• Loading / Unloading at Goods shed   - by Consignors or consignees only (not by Indian Railways)

• However as a gesture measure, IR provides the facilities of drinking water, toilets, bathing and resting facilities for labour at Goods sheds. 

• But Railways are not accountable for service conditions of labour including ID card, medical facility, railway pass, minimum wages, recognition of labour union etc. 

e-RD - electronic Registration of Demand for wagons 

 

• It has been in vogue since 2014. 

• Through FOIS portal (Freight Operations Information System)

• Customers can register and verify themselves on the e-Demand module of FOIS.

• Collecting WRF - Wagon Registration Fee electronically 

• Simpler, convenient & transparent process

eT-RR - electronic Transmission of Railway Receipt:

 

• It has been in vogue since 2019.

• User friendly and paperless transaction system 

• RR is transmitted electronically to the Rail customers

• The Consignor can transfer eT-RR  to the Consignee or registered user of his organisation through FOIS. 

• Delivery of consignment  - on a-surrender of eT-RR by the Consignee. 

• Applicable for rebooking and diversion of traffic. 

• eT-RR is transmitted electronically to the Destination station as well as Accounts office for verification purposes. 

Digital payments - Two types:

1. E-Payment system: 

• Collection of freight charges directly from the customer’s Bank A/c 

• Tripartite agreement between Customer, Bank & Railways. 

• Quadripartite agreement - Allowed Handling agent of customer and Private Banks.

• All Nationalised/Public Sector Banks, HDFC, AXIS, ICICI & Kotak Mahindra banks are permitted. 

  

2.  Online Payment: 

• Launched in 2021 June

• Via SBI payment gateway through Internet Banking, RTGS, NEFT, Credit / Debit Card, UPI. 

• Available round the clock on all 7 days in a week. 

• For Payment of Freight and ancillary charges

FBD - Freight Business Development:

 

• Launched in 2021 December

• Digital facility

• No need for manual applications by Rail customers for different activities. 

• Customer can upload his signed application and the system will forward such applications to the concerned Railway authorities (for stacking permission, rebooking, diversion, short of destination delivery, waiver of demurrage / wharfage charges, STS etc.  

RGP - Rail Green Points: 

• Launched in 2022 May.

• Assigning the customers for Carbon saving points as RGP - Rail Green Points

• Gives a “Feel Good Factor” to the freight customers and act motivate them to transport more by Rail.  

Dangerous goods: 

• Prescribed in Red Tariff

• Norms & Guidelines of IMDG - International Maritime Dangerous Goods

Social Obligations: 

• Transportation of relief materials to flood affected areas. 

• Essential commodities carried below the cost. 

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