Indian Railways Introduces New Freight Incentive Scheme For Freight Traffic Movement

In a bid to boost the freight traffic by Indian Railways, Western Railway, under the dynamic leadership & able guidance of Shri Alok Kansal- General Manager of WR, has set up multi -disciplinary Business Development Units (BDU) at Zonal Headquarters and its Divisional Units. The aim of setting up these BDUs is to improve business prospects in freight market by incorporating new ideas and initiatives.  As per the directives of the Railway Board, Western Rly  has now come up with five new incentive schemes to attract freight transporters to tie up with Railways for transportation of their goods and parcels, in addition to earlier freight incentives. With the help of these new incentives, Indian Railways will offer the traffic to freight customers at competitive unit rates, which are lower as compared to Road transportation and to add to this, freight will be delivered to the destination at speedier pace  with assured timings.

According CPRO Sumit Thakur – Chief Public Relations Officer of Western Railway, these Freight Incentive Schemes are in existence to provide ease of business to customers and to garner additional volume of traffic and revenue to the Railways. Here are the five latest major schemes available for transportation of goods through Railways:

1)      Permissible Carrying capacity for PET Coke:

The Permissible Carrying Capacity (PCC) has been lowered by 2 to 5 tonnes for loading of Pet Coke for BOXN & BONHL w.e.f. 13th October, 2019, while for BOXNHS has been effective from 27th June, 2020. Similarly, the liberlised PCC of BOXNR, BOXNCR, BOXNHSM1, BOXNM1 and BOXNEL has been liberlised w.e.f. 5th August, 2020. These load relaxations are valid upto 11th October, 2020. More details regarding this incentive can be accessed on –

2)      Discount on Haulage Charges for movement of loaded containers:

On the lines of 25% discount being given on haulage rate per TEU for movement of empty Containers & empty flat wagons, Railway Board has granted a 5% discount on haulage charge per TEU rates for movement of loaded containers. This is with effect from 4th August, 2020 to 30th April, 2021. More details regarding this freight incentive can be found on- https://www.indianrailways.gov.in/railwayboard/uploads/directorate/traffic_comm/Freight_Rate_2020/Discount%20on%20loaded%20containers03082020.pdf

3)      Classification of Salt for Industrial Use:

Railway Board has sanctioned the reduction of classification of ‘Salt for Industrial Use’ from Class 120 to Class 100A. Salt for Industrial Use has been allowed to be loaded as loose condition in open wagons. The loose loading is permitted with condition that the floor of wagons and sides are covered by tarpaulins so as to ensure that there should not be any damage/corrosion of wagons due to Salt. In case of such damage/corrosion, customer will be liable to pay for such damages. The instructions for this incentive are effective from 5th August, 2020 and is valid till further notice. More details regarding this freight incentive can be accessed on –

4)      Loading of Fly Ash in open wagons under Freight Incentive Scheme:

Concession was given to loading of Fly Ash in uniform bagged condition. Railway Board has permitted loose/bulk loading in open wagons for Fly Ash, for three types of wagons such as for Open Wagons 40% concession on NTR of applicable class with packing condition of bagged or bulk/loose, for Flat Wagons 40% concession on NTR of applicable class with packing condition as bagged and Covered Wagons which will be charged at NTR of Class LR1 with the packing condition as bagged.

       Customers may note that Open Wagons have also been permitted for bulk/loose loading. In case of bagged Fly Ash, it should be in uniform bags of standard size and in case of loose Fly Ash, customer must ensure hydrating the Fly Ash and covering the wagons with tarpaulins, at its own cost. Tarpaulins, if any being used for covering the bagged Fly Ash in open wagons should also be provided by the customers at their own cost. The customer will be required to furnish an undertaking on the Forwarding Note giving their consent to loading of bagged Fly Ash in open & flat wagons, and to the effect that they would bear the full risk of damage/pilferage of the consignment. Customers shall strictly ensure the adherence to the conditions stipulated by State/Central Government regarding pollution control. These instructions will be effective from 8th August, 2020. More details regarding this can be found on –

5)      Stabling Charge in case of Container Traffic:

  Railway Board has also relaxed stabling charges applicable @ Rs. 525/- per wagons per day, hence no stabling charge shall be levied in case of Container Traffic from 18th May, 2020 to 31st October, 2020. More details regarding this freight incentive can be found on –

CPRO Thakur stated that earlier 14 freight incentives schemes were implemented for the benefit of freight customers & in addition to those now 5 more freight incentives have been initiated, which will definitely play a vital role in boosting the freight traffic over Western Railway.

Recommended For You

About the Author: RailPost News Desk

Tell us what you think about this post!

%d bloggers like this: