Railway Accounts Department Examinations

Showing posts with label Station to Station Rates. Show all posts
Showing posts with label Station to Station Rates. Show all posts

Tuesday, September 18, 2018

STS - Station To Station Rates - Most important question

STS - Station To Station rates

(Most important question for Traffic Accounts optional & GRP)

By Shri Benhur, SSO(A)/Hqrs/SC Rly

Click here for comprehensive Rate Circular 26 of 2016 for "Station To Station" rates.

ü  In order to  attract more traffic and augment  earnings, Station to Station rates are adopted for  a specific stream of traffic for a particular commodity  for movement between a specific originating and destination points


ü  Applicable for the existing  as well as new traffic for concession under STS.  

ü   Station to station rates are applicable for all commodities with classification above class “100” except the following:

A) All commodities under main commodity head “ Coal & Coke

B) Iron Ore  (All Types)

C) Military sidings, POL and RMC


A) Concession is admissible to  Block rake, two/multi point rake, mini rake etc.,

B) The maximum percentage of discount under STS shall upto 30% for incremental traffic and for retention traffic a maximum of 15% can be granted.

C)  Freight realised after allowing concession  under STS should   not be lower than  NTR “class 100”

D) Concession can be granted on monthly/quarterly/half yearly/yearly as per the request of the party. The period of agreement should not be less than one year.

E) the customer has to cross the benchmarks fixed to become eligible for concession under STS and the concession will be given from the next rake after the specified benchmarks are crossed. For example if the customer crosses the benchmark in 10th rake, will be eligible for concession from 11th rake.

F) concession can be granted for the volume of traffic for which no other scheme of concession is granted Viz. TEFD, LWIS etc.

ü  The Board vide  Para 6.0 of R.C. no 26 of 2016 have stated that the zonal Railways can modify the procedure as per the field requirement for grant of concession under STS.

ü  In this Railway a PHOD committee comprising COM, CCM & FA&CAO would scrutinize the  cases and recommend the percentage of concession to be granted to GM for sanction.

ü  The PHOD committee  has decided that the customer becomes eligible for concession on crossing all the following benchmarks:

1. Cluster benchmark
2. Station benchmark
3. Customer Benchmark
4.  O-D (Originating and destination) pair benchmark

Fixation of Benchmarks
ü  A DEC (Divisional Empowered Committee) consisting of a Commercial Inspector and a TIA nominated by DRM will workout the various benchmarks taking average NTKMs  of two previous years either month wise, quarterly or half yearly as per the request of the customer.

ü  The Average NTKMS are worked out  by multiplying the distance carried with the weight as recorded in the RRs. For example the benchmark  for the month of April 2017 is worked out taking the average  NTKMS of April 2015 and April 2016

ü  This DEC report should be approved by the concerned DRM.

ü  The procedure followed for grant of Concession under STS is as under:

1. The customer will submit the application to the DRM
2. DRM nominates the DEC and approves the report and send to Hqrs through concerned Sr.DCM for processing the concession
3. Commercial branch processes  the case and put up to the PHOD committee             ( COM,CCM & FA&CAO)  for their recommendation and obtains the sanction of GM for concession under STS.