Traffic Study Material by Shri Murali, SSO(A)/Chennai/SR

 TRAFFIC ACCOUNTS  (Goods) 

Various types of charges collected in Railway Receipts

By P.Murali Sr.SO(A)/TA/SR

Current prevailing Rates:

1. Wagon Demand Registration FEE. W.E.F. 01.11.2022 (WDRF)

Gauge	Registration fee per wagon (Rs.)	Registration Fee per rake (Rs.)
BG	6,000	1,00,000
MG	6,000	1,00,000
NG	No loading	No loading

Lump Sum Deposit for Government Departments shall be Rs.5 Lakhs.

Authority TC-I/2020/101/efile/I-part(I)(3332083) dt 17.10.2022

2. Demurrage Charges 

The current Base Rate of DC shall be Rs.150/- per 8 wheeled wagons per hour w.e.f. 1.10.2022

Duration of excess detention beyond the free time of stock	Rate of Demurrage
Upto 6 hours	Rs.150/- per wagon per hour or part thereof
Beyond 6 hours upto 12 hours	Base rate + 10%
Beyond 12 hours upto 14hours	Base rate + 25%
Beyond 24 hours upto 48 hours	Base rate + 50%
Beyond 48 hours upto 72 hours	Twice of Base Rate
Beyond 72 hours	Thrice of Base Rate

Authority TC-I//2022/201/efile/2(3394909   dt  13.09.2022

The debit/credit system of charging DC on trial measure has been discontinued  w.e.f. 01.10.2022

3. Wharfage Charges

Railway Premises (Goods Sheds, Stations etc.) will be classified into three groups as prescribed below on the basis of average number of rakes dealt with during the period from 1st January to 30th April. 

Group I	More than 12 rakes per month
Group II	7 rakes to 12 rakes per month
Group III	less than 7 rakes per month

PERMISSIBLE FREE TIME FOR REMOVAL OF GOODS FROM RAILWAY PREMISES 3.1 Free time for removal of goods from railway premises will be as under:

1. Goods stacked in goods sheds etc. waiting to be loaded in wagons/rake  

Group I	12 working hours from the expiry of free time for loading of wagons/rake
Group II	15 working hours from the expiry of free time for loading of wagons/rake
Group III	30 working hours from the expiry of free time for loading of wagons/rake

(b) Goods unloaded from wagons/rakes waiting to be removed from goods shed etc.

Group I	12 working hours from the expiry of free time for loading of wagons/rake
Group II	15 working hours from the expiry of free time for loading of wagons/rake
Group III	30 working hours from the expiry of free time for loading of wagons/rake

4. Siding Charges:  

The siding charges are calculated with All India Engine  Hour Cost (AIHEC)  which is advised by the Traffic Commercial Department. Every year. Based on the AIEHC siding charges are fixed for each siding. 

The AIEHC for the current year w.e.f. 01.08.2022

Type of Engine Locomotives	Cost per hour
	Broad Gauge (BG)	Meter Gauge (MG)
Diesel Locomotives
Shunting Engine	Rs.10620	Rs.10340
Train Engine	Rs.16990	Rs.14770
Electric Locomotives
Train Engine	Rs.15440	---

Costs to be recovered for steam locos wherever in use over IR shall be identical to that of Diesel Engines indicated above.

Minimum time levied for siding charge is one hour

If the shunting trip time exceeds one hour based on trip trials conducted. The siding rates are calculated accordingly. 

5. Busy Season Charge

Busy Season Charges which were discontinued during the pandemic period .  Now the Board has decided              to levy the same w.e.f. 01.10.2022 at the rate of  15 % for all commodities except Coal & Coke, container traffic and Automobile traffic. The Busy Season period is from 1st April to 30th June and 1st October to 31st March.

(Authority TCR/1078/2020/16/3329183  dated 27.09.2022

6. Development Surcharge:

5% levied throughout the year on all Goods Traffic

Authority TCR/1078/2015/14 dt 20.07.2015 

7. Congestion charge:. 

25% for all traffic booked to Bangladesh.

 20% for all  traffic booked to Pakistan 

Authority TCR/1078/2015/14 dt 20.07.2015 

8. Port congestion charges: 

 10% is levied for all Goods traffic, including containers originating from the ports. 

Authority TCR/1078/2015/14 dt 20.07.2015 

9. OTC & DTC:

 In addition ,Originating Terminal Charge and Destination Terminal Charge are collected and apportioned to Originating Railway and Terminating Railway. The rates are OTC Rs. 20/- per tonne and DTC Rs.20/- per tonne.

10. GST:

 5% Levied on all commodities.

11. Railway Material consignment:

 when booked in Department owned wagons NO OTC, DTC and  busy season surcharge levied.    If RMC is booked in the General Service Wagon it is treated as Revenue Traffic and all charges are levied.

12. Freight calculation –

 sample calculation 

From:  MDKS   - ACC Siding Madukkarai

To:      BDJ           - BADAGARA

Commodity : Cement

Class :  140 B Wagon load

Distance : 216  Kms.

Table Rate : Rs. 366.50

Tonnes : 759 T

Distance	216 Kms.
Table Rate	Rs.366.50
Chargeable weight	759 T
Freight	Rs.2,78,173.50
OTC & DTC 40/T	Rs. 15,180/-  Origin is private siding only DTC is charged
Busy season surcharge 15 %	Rs.41,729.50 (278173.5* 15%)
Development Surcharge 5%	Rs. 15992.13 ((278173.5+41729) X 5%)
GST 5%	Rs.17,554 (278173.5+15180+41729.5+15992.13) X 5 %
Total freight	Rs.3,68,630/-
GST

13. Hub and Spoke system:

 Operators can operate the Hub and Spoke system for transportation of containers in certain regions for which the system of documentation and calculation of haulage charges would be as follows. 

1. Hub is a container loading facility/depot, which will be used by an operator to aggregate/ disseminate traffic. For this purpose, the operator may make a request to the Railway indicating the pairs of stations between which he will run his container trains via this hub.  Depending on operational feasibility and ensuring that this feasibility is not used by operators to get undue benefit of telescopic rate, the hub will be approved and notified to the Railway Administration by the Railway Board.  No benefit may be given unless a Hub is notified by the Railway Board.

2. The Originating point will clearly indicate on the Railway Receipt (RR) whether the container will go directly to the destination or will move via a specified hub.  

3. The haulage charges for the loaded container will be charged from the originating point to the destination point for the entire distance of actual haulage via the specified “Hub”.

4. For the loaded/empty container transshipped at the “Hub”, a subsequent RR with “Zero” freight will be prepared for the distance from the hub to the destination, duly cross-referring the original RR and the originating point on the subsequent RR.

5. The RR for recovery of haulage charges will be prepared by Railway Staff posted at ICD/Port/Railway Terminal on the basis of summary given by the operator of ICD indicating weight of consignment including the tare weight of container.

14. CONCOR:

• The haulage charges are  only collected for movement of TEU (Twenty feet Equivalent unit). The  empty haulage is also charged.

• The loaded container single deck are charged based on   the weight loaded i.e, upto 10T, more than 10T and upto 20T, more than 20T and upto 26T, more than 26T and upto 30T and more than 30T. 

• Similarly empty container single deck and Empty Flat wagon movements are also charged. 

• Development Surcharge 5%,  GST and Terminal Access Charge is also  leviable   for concor movement. 

 – end –

 

Arbitration & Conciliation

• Settlement of Disputes - 3 Stages

1. Conciliation.  If it fails, then

 

2. Arbitration. If this one too fails, then

3. Judicial proceedings

  

●     Authority: Click for Indian Arbitration & Conciliation Act, 1996. New Act is “Indian Arbitration & Conciliation Act, 1996 - Simple, straight and easy in its understanding & implementation. It repeals the Arbitration Act, 1929. 

●     Source: Clauses 63 & 64  Click for GCC for Works,2022 April  

• 90 days - If the Contractor does not prefer his claims in writing within a period of 90 days of receiving the intimation from the Railways that the final bill is ready for payment, he will be deemed to have waived hi claim and the Railways shall be discharged and released all liabilities and under the contract in respect of these claims. 

What is Conciliation ?

  1.    The action of mediating between two disputing people.

2.    An alternative out of court dispute resolution instrument.

3.    An alternative to Arbitration too.

4.    The parties seek to reach an amicable dispute settlement.

5.    The Conciliator, a neutral third party assists the conciliation process.

6.    Voluntary proceedings. Both parties are free to agree to it.

7.    The process is flexible, allowing parties to define the time, structure and content of the conciliation proceedings.

8.     The ultimate decision to agree on the settlement remains with the parties. 

Conciliation:

 

1. Notice of Dispute:   By Contractor to Railways  - Within 30 days from the date of issue of Completion Certificate by Chief Engineer.

2. Notify the name(s) of Conciliator(s) to the Contractor  - Within 30 days from the date of receipt of “Notice of Dispute”

3. Conciliator(s) shall assist the parties to reach an amicable settlement in an independent and impartial manner within the terms of contract.

4. During Conciliation proceedings - Parties shall not initiate any arbitral or judicial proceedings.  

5. If parties reach an agreement due to the above efforts of Conciliator - Draw up and Sign a Written Settlement Agreement by all parties and Conciliator and it is final and binding for all.  

6. Termination of Conciliation proceedings (Section 76 of ‘The Arbitration and Conciliation Act, 1996)   

• By the signing of the settlement agreement by the parties, or

• By a written declaration of the conciliator, after consultation with the parties, to the effect that further efforts at conciliation are no longer justified, or

• By a written declaration of the parties addressed to the conciliator to the effect that the conciliation proceedings are terminated,  or

• By a written declaration of a party to the other party and the conciliator, if appointed, to the effect that the conciliation proceedings are terminated.

 ● What is Arbitration?

 

1.    Use of an Arbitrator to settle a dispute between parties arising out of contract.

2.    An inbuilt mechanism in Contracts.

3.    Without going through the judiciary.

 

● Who is an Arbitrator ?

 An Independent person or body officially appointed to settle a dispute.

  

● Reasons for Arbitration cases

 

1.     Site not handed over in time due to delayed land acquisition.

2.    Non removal of Powerline crossings

3.    Non availability of P.Way materials

4.    Delay in obtaining clearances from Forest Dept, Environment ministry etc

5.    Not preparing plans/drawings/designs in advance.

6.    Inadequate delay in issuing instructions.

7.    Frequent changes in Scope, Design, Plans of work during the tenure of contract.

8.    Non finalization of variation statements

9.    Delay in making measurements and arranging passing of bills

10.  Inadequate funds availability leads to delay in payments

11.  Non attending grievances of contractor promptly

12.  Improper fixation of completion of time leading to number of extensions.

●     Excepted matters are not arbitrable. Clauses 8, 18, 22(5), 39, 43(2), 45(a), 55, 55-A(5), 57, 57A,61(1), 61(2) and 62(1) of Standard General Conditions of Contract or in any Clause (stated as excepted matter) of the Special Conditions of the Contract)  -  Decision of the Railway authority shall be final and binding on the Contractor.

 

1. Clause 7(j) - Assignment or Subletting of Contract: Further, in case Engineer is of the view that subcontractor’s performance is not satisfactory, he may instruct the Contractor to remove the subcontractor from the work and Contractor has to comply with the above instructions with due promptness. Contractor shall intimate the actual date of discontinuation of subcontract to Engineer. No claim of Contractor whatsoever on this account shall be entertained by the Railway and this shall be deemed as ‘excepted matter’ (matter not arbitrable). 

2. Clause 8 - Assistance by Railway for the Stores to be obtained by the Contractor:

3. Clause 18 -Illegal Gratification, bribe, commission, gift or advantage provided by Contractor to the Railway Official.

4. Clause 22(5) - Specifications and Drawings

5. Clause 39 - Rates for extra items of work

6. Clause 43(2) - After signing “No Claim Certificate” by Contractor

7. Clause 45 (i)(a) - Measurement of Works by Railway:

8. Clause 55 A (5) - Provisions of Contract Labour (Regulation and Abolition) Act, 1970

9. Clause 57 - Provision of Workmen Compensation Act

10. Clause 57 (A)- Provision of Mines Act:

11. Clause 61(1) - Right of Railway to Determine the Contract

12. Clause 61(2) - Payment on Determination of Contract

13. Clause 62(1) -  Determination of Contract owing to Default of Contractor

  

● Demand for Arbitration:

• 120 to 180 days - If Railway fails to take a decision on Contractor’s claim within 120 days, Contractor shall make demand for Arbitration after 120 days but before 180 days from the date of Contractor’s claim

 

•  In Writing

• Specify the matters and claims

• Within 30 days from the date of appointing Arbitral tribunal  - Claimant shall submit his/her claims with supportive documents.

• Railway’s counterclaim  - 60 days from the date of appointing Arbitral tribunal.

• Place of Arbitration:  Within Division or Hqrs or any other place with the written consent of both the parties. 

 

• No new claim during the proceedings by either party. However either of the parties can amend or supplement the original claim or defense subject to the acceptance by the Tribunal. 

 

● Cost of Arbitration  - borne by both parties equally.   

• A party may apply for corrections of any computational errors, any typographical or clerical errors or any other error of similar nature occurring in the award of Tribunal and interpretation of specific point of award to Tribunal within 60 days of receipt of the award. 

• Appointment of Arbitrators - Where applicability of Section 12(5) of Arbitration & Conciliation Act, 2015 (Arbitrator’s relationship with the parties or counsel ) has been waived off 

• The serving Officer can continue as Arbitrator  in the Tribunal even after Retirement.

• In case of Tribunal, comprising 3 members - Award shall be made by the majority of members of Tribunal.  In the absence of such a majority, the views of the presiding arbitrator shall prevail. 

 

Amount of Claim	No of Arbitrators	Remarks
Up to Rs. one Crore	Sole	JAG and above
Above Rs. One Crore	Three	3 JAG Officers & above Or  2 JAG Officers & above & 1 Retd SAG & above

•  Appointment of Arbitrators - Where applicability of Section 12(5) of Arbitration & Conciliation Act, 2015 (Arbitrator’s relationship with the parties or counsel ) has not been waived off

Amount of Claim	No of Arbitrators	Remarks
Up to Rs. 50 Lakhs	Sole	Retired SAG & above
Above Rs. 50 Lakhs	Three	Retired 3 JAG Officers & above

Qualifications of Arbitrators: 

1. Serving Gazetted officers of JAG & above 

2. Retired Railway Officers of SAG & above , one year after his date of retirement

3. Below 70 Years.

 &&&&&

Liquidated Damages - LD in Works

 Liquidated Damages in Works 

● Source: Clause 17B of GCC 

● Levied for delay of Works due to Contractor i.e., Clause 17B of GCC (not due to by Railways or any other reason) 

● If the Contractor fails to complete the works within the time as specified in the contract for the reasons other than the reasons specified in Clause 17 and 17-A, Liquidated Damages / General Damages on Contractor. 

● Value of the Work - Value of Agreement including any supplementary agreement. 

● Total LD - shall not exceed 5 % of the Value of the Work or total value of item or groups of items of work for which a separate distinct completion period is specified in the contract. 

● LD Rates  - As decided by the Engineer - Between 0.05 % to 0.30 % of Contract value of the work for each week or part of the week.  

● If the Railway is not satisfied that the works can be completed by the Contractor and in the event of failure on the part of the contractor to complete the work within further extension of time allowed as aforesaid, the Railway shall be entitled without prejudice to any other right or remedy available in that behalf, to appropriate the contractor’s Security Deposit and rescind/cancel the contract under Clause 62 of these Conditions, whether or not actual damage is caused by such default. 

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Nageswara Rao 9492432160 

https://www.appendix3exam.com/ https://www.mcq.mcqrailways.com/

Deposit Linked Insurance Scheme

 DLI   - Deposit Linked Insurance Scheme

• DLI stands for Deposit Linked Insurance  

 

• Introduced w.e.f.,  08.01.1975 

 

• Object: 1. To provide extra social security to the families of subscribers to SRPF  2. A positive incentive to Railway employees who save more (in their PF Account) 

 

• Payment of Premium is not required. 

 

• Minimum qualifying balance is as follows: 

Grade Pay	Minimum qualifying balance in the last 36 months at the credit of the PF account of the deceased employee.
Grade Pay 4800 and above	Rs. 25000
Grade Pay 4200 to Grade Pay 4800	Rs. 15000
Grade Pay 1400 to Grade Pay 4200	Rs. 10000
Grade Pay 1300	Rs. 6000

• Payment: The minimum balance available in PF account during the last 36 months subject to the ceiling limit of Rs. 60,000 will be paid to the heir of deceased employee. 

Example 1: Mr A whose Grade Pay is 4200 died on 05.01.2022.  His minimum balance in PF account during the last 36 months prior to January, 2022 is Rs. 16000.  So DLI payment to the heir of Mr A is Rs. 16000 

Example 2: Mr B whose Grade Pay is 1300 died on 05.01.2022.  His minimum balance in PF account during the last 36 months prior to January, 2022 is Rs. 5900.  Since the minimum balance i.e Rs.5900 is less than minimum required is Rs.6000, the heir of Mr B is not eligible for DLI.  

Example 3: Mr C whose Grade Pay is 4800 died on 05.01.2022.  His minimum balance in PF account during the last 36 months prior to January, 2022 is Rs. 72000.  So DLI payment to the heir of Mr C is Rs.60000 which is maximum under DLI scheme. 

Material for MCQ

1. Maximum DLI to be paid is Rs.60000

2. Payment of DLI is minimum balance in last 36 months subject to maximum of Rs.60000

3. Qualifying period is 36 months

4. DLI stands for Deposit Linked Insurance

5. Introduced in the year 1975 

6. Applicable to the SRPF subscribers only

  —-end—-