Railway Accounts Department Examinations

Showing posts with label Wagon Leasing Scheme. Show all posts
Showing posts with label Wagon Leasing Scheme. Show all posts

Thursday, November 23, 2023

Wagon Leasing Scheme - Freight Incentive Schemes


Wagon Leasing Scheme 


  • 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. 


  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