Wagon Leasing Scheme - Freight Incentive Schemes

  

Wagon Leasing Scheme 

 

• Source:  Click for Freight Marketing Master Circular/WLS/2014/0 dated 16.12.2014

• Objects: 

1. Develop a strong wagon leasing market  

2. Encouraging third party leasing of Wagons 

3. To bring in Wagons of better designs 

• Leasing - Types of Wagons:  

1. HCW - High Capacity Wagons 

2. SPW - Special Purpose Wagons 

3. Wagons for Container Movement   

Leasing of Wagons to the following agencies: 

1. End users: for HCW & SPW 

2. Operators: Type of Wagons as permitted under concession 

WLC - Wagon Leasing Company - Eligibility conditions 

1. An entity registered in India under the Companies Act, 1956

2. Asset leasing business experience either in India or Abroad - 5 years (Amendment 1 of Master Circular dated 28.03.2022)

3. Net worth - at least 100 Crores 

WLC Registration 

• Registered with the Ministry of Railways

• One time Non-refundable registration fee - Rs. 5 Crores 

• Registration is valid for 35 years 

Procurement of Wagons by WLC

• Directly from Wagon Manufacturers / through Imports 

• Under intimation to Ministry of Railways (subject to fulfillment of all other conditions stipulated under this policy) - Amendment 1 of Master Circular dated 28.03.2022 

• New Design of Wagons (Not in operation so far in IR) - Procurement with prior administrative & technical approval of MOR - Ministry Of Railways 

• Block Rake Composition: Prescribed No of Wagons + 4% spare + 1 Brake van  

• The Brake van of the rake purchased by the WLC - added to the General pool of IR brake vans. In exchange, IR will meet the operational requirements of providing brake vans to the WLC’s rakes for which it has procured.  

Leasing Contracts: 

• Bi-partite agreements between the WLC and the Lessee.  IR will not have any responsibility or liability except to the extent set forth in the Master Circular. 

• On receipt of an advice of termination of Lease from the Lessee - IR will act and cease to make wagons available to the Lessee and hold such idle leased wagons in its custody awaiting further nomination of a lessee by the WLC. 

• On receipt of advice of termination of lease from the lessee - IR will not act  

• Subleasing - Not permitted 

Stabling charges paid or not by the WLC  

• Yes  - If wagons are terminated on the advice of WLC and hold such wagons in custody of IR on IR owned Railway lines. 

• Yes - If WLC advises IR to move idle leased wagons from one terminal to another terminal/siding

• No - If Leased Wagons are held in the private sidings of WLC or Lessee or any other Private siding selected by WLC  

Maintenance of Wagons of WLC: 

• By Indian Railways on Payment 

Lien by Railways: 

• WLC - Exercised lien on Leased wagons  - to recover dues from the WLC, in case of default

• Lessee - Exercised lien on the consignment loaded in the leased wagons - to recover dues from the Lessee, in case of default   

Dispute Resolution: 

• All disputes (of Agreements of Zonal Railways) will be referred to an Arbitrator nominated by the GM of the Zonal Railway

Key points for MCQ:

1. WLC Registration - valid for 35 years  

2. Non refundable Registration fees(one time) -Rs.5 Crores 

3. Block Rake Composition: Prescribed No of Wagons + 4% spare + 1 Brake van  

4. HCW - High Capacity Wagon:  Wagons with payload -2.0 tonnes higher than the payload of extant similar wagons on IR for 25 T or 22.9 T axle load route, as the case may be. 

5. Lessor: A WLC engaged in the business of leasing wagons to the Lessee. 

6. SPW  - Special Purpose Wagon : Wagons designed for rail transportation of a specific commodity or group of commodities. 

Abbreviations: 

1. WLS: Wagon Leasing Scheme 

2. MOR: Ministry Of Railways 

3. IR: Indian Railways

4. WLC: Wagon Leasing Company 

5. HCW: High Capacity Wagons

6. SPW: Special Purpose Wagons 

7. LWIS: Liberalized Wagon Investment Scheme 

8. CTO: Container Train Operators 

9. SFTO: Special Freight Train Operator 

10. AFTO: Automobile Freight Train Operator 

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G&SR - General Rules & Subsidiary Rules for Traffic Dept

 

Click for G&SR - General Rules & Subsidiary Rules

Abbreviations on Traffic / Commercial / Operating

 

Abbreviations on Traffic / Commercial / Operating 

SN	Abbreviation	Expansion
1	LTTC	Long-Term Tariff Contract
2	TEFD	Traditional Empty Flow Direction
3	GFR	Gross Freight Revenue
4	RTT	Round Trip Tariff
5	TAC	Terminal Access Charge
6	CRT	Container Rail Terminal
7	TEU	Twenty-foot Equivalent Unt
8	PCC	Permissible Carrying Capacity
9	NMG rake	New Modified Goods rake
10	EOL	Engine On Load
11	RMC	Railway Material Consignment
12	e-RD	electronic Registration (of Wagons)  of Demand
13	e-RR	electronic (Transmission of) - Railway Receipt
14	TMS	Terminal Management System
15	AFTO	Automobile Freight Train Operator
16	CRT	Container Rail Terminal

AOB - Accounts Office Balance sheet

 

Accounts Office Balance Sheet (AOB)  

Purpose:

To watch the realization of credit notes or voucher facilities extended to Governments or Private parties in lieu of cash/cheque. 

• Prepared in the Traffic Accounts Office (TAO) 

 

•  To account for the  Carriage Bills(prepared in connection with Credit Notes etc. tendered at stations in lieu of cash into an account and 

 

• watching their realization from the parties concerned as well as for incorporation into accounts.   

 

• The traffic cash received otherwise than through station Balance Sheets (Eg: workshop profits, advertisements fees, sale of coupons to the Tourist agents, etc.). 

 

•  Misc bills related to railway material carried for departmental works. RMC - Railway Material Consignment. 

 

• Similar to the Bills Receivable Account in Commercial Bookkeeping 

 

• Form No. A 2923    

 

• Separately for Coaching traffic and Goods traffic

 

• Debits - Vouchers received in the TAO - Traffic Accounts Office  

 

• Credits - Realisation of the above vouchers (Either by Cheques from State Govts / PAO or Adjustment (Defence and Postal) 

 

• Accounting heads operated are AG suspense/M Remittance 

 

• Closing Balance: Represents the unrealized carriage bills and the value of vouchers yet to be billed.  

 

• Closing Balance: Always Debit

Key points for MCQ: 

1. AOB stands for Accounts Office Balance sheet 

2. Prepared in TAO 

3. TAO stands for Traffic Accounts Office 

4. Form No. A 2923 

5. Separately for Coaching traffic and Goods traffic 

6. Purpose: To watch the realization of credit notes or voucher facilities extended to Governments or Private parties in lieu of cash/cheque. 

7. Accounts head operated are - AG Suspense and M Remittance 

8. Closing Balance: Unrealized carriage bills and the value of vouchers are yet to be billed 

9. RMC stands for Railway Material Consignment 

10. AOB - Similar to Bills Receivable Account in Commercial Accounts 

11. Closing Balance: Always Debit Balance

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