Jul 28, 2016

Measures to Boost freight traffic by Indian Railways

 Indian Railways is the most environmental friendly in transportation sector. It is a major player in transport market. The Government is committed to improve the share of Indian Railways in the freight market and this is reflected in the Budget announcement made during the current year. In Budget it has been announced that a review of tariff policy will be undertaken to evolve a competitive rate structure vis-a-vis other modes, permit multi-point loading/unloading and apply differentiated tariffs to increase utilization of alternate routes.

The Government has initiated various steps so as to increase the share of Rail in transportation market. Some of these steps are as under:
i) Distance for Mini Rakes increased from 400kms to 600kms.
ii) All covered wagons have been permitted for booking of traffic to two-point/multi-point combinations and mini rake.
iii) Two point combination for covered stock Liberalised. Now any two stations within 200 kms in Busy season and within 400 kms in lean season can be booked for two point.
iv) Automatic Freight Rebate Scheme in Traditional Empty Flow Direction has been extended till 30.09.2016.
v) Port Congestion Charge (10% of Base Freight) has been withdrawn from 13.04.2016.
vi) Merry-go-Round System has been further Rationalised.
vii) Dual Freight Policy for Iron Ore has been withdrawn from 10.05.2016.

viii) Transportation of Iron Ore through Rail-cum costal shipping for domestic consumption permitted w.e.f. 23.03.2016.
ix) Withdrawal of Busy Season Charge on covered stock (15% of Base freight) from 01.05.2016
x) Minimum distance for charge is reduced from 125 kms to 100 kms (from 15.07.2016 to 15.09.2016) for all commodities and graded concession for short lead traffic introduced under which Short Lead concession for charging of freight for all traffic booked up to 100 kms will be as under:-

Distance Slab
Freight Concession
0 – 50 km
30% (thirty percent)
51 – 75 km
10% (ten percent)
76 – 90 km
5% (five percent)
91 – 100 km

xi) Stations and Goods sheds notified in Group I & II are opened for Container operations including Lift On-Lift Off and/or Chassis Stuffing/De-stuffing and will be considered as Container Rail Terminals (CRT).
xii) Proliferation of Roll-on Roll-off scheme over Indian Railways.
xiii) The following changes have been made in Classification of Commodities –
(a) Classification of Red Mud reduced from Class-150 to 120;
(b) Groundnut Seeds added under Oil cakes and Seeds at Class-120;
(c) Oliflux added under Minerals and ores at Class-160;
(d) Kota Stone has been de-notified.
This Press Release is based on the information given by the Minister of State for Railways Shri Rajen Gohain in a written reply to a question in Lok Sabha 

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