Railway Accounts Department Examinations

Showing posts with label LWIS. Show all posts
Showing posts with label LWIS. Show all posts

Saturday, May 12, 2018

LWIS - Liberalised Wagon Investment Scheme

LWIS - Liberalized  wagon investment scheme
2016 Station Accounts (without books) - 5 marks

Ø  Induction of private wagons into Railway system

Ø  Under this scheme, an investor would procure a rake/rakes including 4% spares and brake van. Railways agree to move these rakes in the system subject to certain conditions.

Ø  The procedure for procurement of Rakes by a private player is as under:

1.    COM of the Railway where the loading is done is contacted with the application showing the details viz; No. of rakes required, Type of Wagons, Commodity, loading stations etc,.

2.    After examination of the proposal as regards its operational feasibility “NOC’ is issued by COM of the loading Railway and the Railways through which the Rake passes.

3.    Application of the investor along with the NOC will be forwarded by the zonal Railway to ED/freight marketing (EDFM) for Board’s approval for procurement of rakes under LWIS.

4.    The rakes will be procured by the customer directly from wagon manufacturer or through import subject to meeting IRS designs and specifications and inspected by RDSO.

5.    Each Rake procured will have the authorized loading/unloading points, over specific routes or close circuit as approved by the Railways. These loading/unloading points can be changed as per the requirement of the investor.

Freight Charges.

1.Freight charges  will be levied at normal tariff applicable from time to time subject to adjustment of freight concession.

2. No freight will be charged on movement of empty rakes to the next destination. However, if the distance travelled is more than the loaded distance, empty freight rake will be charged @50% of loaded traffic.

Freight Concession

1.   The investor shall be allowed freight concession @ 15% on the base  freight rate in RR itself for the entire concession period of 20 years.

2.    If the investor  avails any concession or financial benefit under any other scheme in procurement of wagons, no concession shall be admissible under this scheme

Maintenance of wagons
Ø  The cost of maintenance of these wagons will be borne by the investor. The haulage charges for moving the wagons from private terminal to the  workshop/maintenance depot and back to loading point shall be borne by the Railways.

Restricted commodities.

Ø  Transportation of coal and coke Ores and minerals including Iron Ore are not permitted. However, other commodities which are produced/consumed by the investor shall be permissible.

Wagon involved in Accidents

Ø  In the event of wagons getting condemned as a result of accidents arising out of
1.    Negligence of the investor- No compensation is payable,

2.   Negligence of Railways- Payable  by Railways @ depreciated value as per IT rules at the time of condemnation.

Right to purchase the wagons

Ø  In case the investor decides to discontinue these wagons, Railways has the first right to purchase. The condemned wagons can be directly disposed off by the investor or through the Railways.