TAC - Track Access Charges
Definition: Charges payable by user for access to the Rail Network.
A Concession Agreement signed between DFCCIL - Dedicated Freight Corridor Corporation of India Ltd, an SPV - Special Purpose Vehicle and Indian Railways in 2014. Under this agreement, Indian Railways will pay TAC to the DFCCIL for accessing the track constructed by the latter.
TAC - Two part Tariff (decided after examining the practices followed by different Railways of the world where ownership of infrastructure (i.e., DFCCIL) has been separated from the user of the infrastructure (i.e., Indian Railways & other Private users)
Fixed Component (Depreciation, Cost of the Capital i.e., Interest) - will be payable irrespective of volume of traffic
Variable Component (Traction charges, staff costs, material costs) - will be payable based on volume of traffic in terms of 000 GTKM
Part of these TAC, will be utilized by DFCCIL to pay back loans availed to develop Dedicated Freight Corridors to World Bank and JICA - Japanese International Cooperation Agency.