17 March 2017

Rationalisation of Freight Rates in Indian Railways

The Government has initiated various freight rationalization measures which have resulted in decrease in freight rates. Besides, various other administrative measures have also been taken to promote ‘Ease of doing business’. Some of these steps are as under:



1) Withdrawal of Port Congestion Charge from 13.04.2016.

2) Extension of Automatic Freight Rebate scheme for traffic loaded in empty flow direction upto 31.03.2017.



3) Withdrawal of Busy Season Charge for traffic loaded in BCN group and BCNHL wagons w.e.f. 01.05.2016 till 30.06.2016.

4) Withdrawal of dual freight policy for iron ore w.e.f. 10.05.2016.

5) Re-introduction of short lead concession and reduction of minimum distance for charge from 125 km to 100 km w.e.f. 15.07.2016

6) BCN group permitted for two point booking and mini rake w.e.f. 15.03.2016.

7) Distance for mini rake increased from 400 km to 600 km w.e.f. 15.03.2016.

8) A liberalised policy with delegation of power to Zonal Railways introduced for two point booking of covered wagons in which any two stations within a distance of 200km in busy season and 400km in lean season have been permitted for two point booking w.e.f. 22.07.2016.

9) Rationalisation of Merry-Go-Round (MGR) system w.e.f. 01.04.2016, which has led to reduction in freight rate to the extent of 80%.

10) Proliferation of Roll-on Roll-off (RORO) service launch on ECR from 25.05.2016 and subsequently on all Indian Railways.

11) Permission to notify Group I and Group II station/ goods sheds as CRTs for lift on-lift off operations w.e.f. 12.07.2016.

12) Charging of commodities for transportation by containers has been liberalised. 43 additional commodities de-notified for charging at FAK rates w.e.f. 02.09.2016.

13) Guidelines for Station to Station Rate policy issued on 29.09.2016.

14) Class of various commodities has been rationalized and new commodities have been added in Goods Tariff.

15) Instruction for movement of HSD Oil in BTPN rakes from Numaligarh refinery siding (NRSR) to Parbatipur, Bangladesh has been issued w.e.f. 13.03.2016.

16) The system of transportation to Bangladesh through ‘Dump’ and ‘load adjustment’ has been discontinued.



17) Withdrawal of levy of congestion charge for stone traffic transported from Eastern Railway to Bangladesh via Darsana/ Benapole.

18) Weighment of Standard Bagged consignment policy has been rationalized.

19) Discount of loading of bagged consignment in open and flat wagons w.e.f 24.10.2016

The Government has initiated various freight rationalization measures which have resulted in decrease in freight rates. Besides, various other administrative measures have also been taken to promote ‘Ease of doing business’. Some of these steps are as under:



1) Withdrawal of Port Congestion Charge from 13.04.2016.

2) Extension of Automatic Freight Rebate scheme for traffic loaded in empty flow direction upto 31.03.2017.



3) Withdrawal of Busy Season Charge for traffic loaded in BCN group and BCNHL wagons w.e.f. 01.05.2016 till 30.06.2016.

4) Withdrawal of dual freight policy for iron ore w.e.f. 10.05.2016.

5) Re-introduction of short lead concession and reduction of minimum distance for charge from 125 km to 100 km w.e.f. 15.07.2016

6) BCN group permitted for two point booking and mini rake w.e.f. 15.03.2016.

7) Distance for mini rake increased from 400 km to 600 km w.e.f. 15.03.2016.

8) A liberalised policy with delegation of power to Zonal Railways introduced for two point booking of covered wagons in which any two stations within a distance of 200km in busy season and 400km in lean season have been permitted for two point booking w.e.f. 22.07.2016.

9) Rationalisation of Merry-Go-Round (MGR) system w.e.f. 01.04.2016, which has led to reduction in freight rate to the extent of 80%.

10) Proliferation of Roll-on Roll-off (RORO) service launch on ECR from 25.05.2016 and subsequently on all Indian Railways.

11) Permission to notify Group I and Group II station/ goods sheds as CRTs for lift on-lift off operations w.e.f. 12.07.2016.

12) Charging of commodities for transportation by containers has been liberalised. 43 additional commodities de-notified for charging at FAK rates w.e.f. 02.09.2016.

13) Guidelines for Station to Station Rate policy issued on 29.09.2016.

14) Class of various commodities has been rationalized and new commodities have been added in Goods Tariff.

15) Instruction for movement of HSD Oil in BTPN rakes from Numaligarh refinery siding (NRSR) to Parbatipur, Bangladesh has been issued w.e.f. 13.03.2016.

16) The system of transportation to Bangladesh through ‘Dump’ and ‘load adjustment’ has been discontinued.



17) Withdrawal of levy of congestion charge for stone traffic transported from Eastern Railway to Bangladesh via Darsana/ Benapole.

18) Weighment of Standard Bagged consignment policy has been rationalized.

19) Discount of loading of bagged consignment in open and flat wagons w.e.f 24.10.2016

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