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ownership of an article is not known initially and left unclaimed, it is called ‘Lost Property’. When the ownership is known but the article is left without claim, it is called ‘Undelivered article.’ Disposal of Lost Property: 1) At the terminal station a responsible station staff should check all empty carriages of the incoming trains with an RPF for left behind property, it any. 2) Any such articles found shall be deposited to the SM for further disposal. 3) The SM should issue receipt for such articles after taking inventory, which should be attested by the staff handing over the property. 4) If any suspicious article is found unclaimed GRP should be advised to check whether it contains explosives or other dangerous goods. 5) All lost property should be entered in the “Lost Property Register” with their full description, actual weight, approximate value (if it can be ascertained), etc. 6) In case of box/bag, an inventory should be taken in triplicate in the presence of RPF/GRP. If RPF/GRP is not available inventory can be taken in the presence of two station staff. 7) The witnessing staff should attest the inventory. 8) One copy of the inventory is handed over to the witnessing official, one copy is kept inside the box/bag and another copy is pasted in the ‘Lost Property Register’. 9) The contents are repacked and sealed to avoid damage and pilferage. 10) Packages hermetically sealed or known to contain photographic materials, which are liable to deteriorate when exposed, should not be opened. 11) Each lost property should be labeled with the Serial No. in the Lost Property Register.

Lost Property claimed by Owner: 1. 2. 3. 4. 5. 6. 7. SM should make all possible efforts to deliver the lost property to the rightful owner, using the clues available in the packages, if any. Package will be delivered after identification by the owner and on receipt of an application. Full address of the owner is recorded and his signature is obtained in the lost property register. No commercial charges are collected. If SM has any doubt about the ownership, the lost property can be delivered only as per the orders of Sr.DCM. All lost property if not claimed within 7 days of their deposit should be sold by public auction. If the price offered is too low or when there is no demand, the article can be disposed off as per orders of Sr.DCM.

Lost property of no value, Arms & Ammunitions, Jewellery, etc., 1) 2) 3) Lost property of insignificant value such as old shoes, unserviceable hats, etc., should be sold by public auction in the same station after 7 days. Articles fetching no value should be thrown away. The SM should certify in the lost property register that the article was of no value. Lost Property of Arms, Ammunitions, Explosives and other dangerous goods, intoxicating liquors, etc., for which a license is required for sales, should be handed over to the police or Excise authorities as the case may be under acknowledgement in the lost property register. Police/Excise authorities should remit the charges due to the Railway after the disposal of the lost property. Arms, ammunitions, explosives, etc., with distinct ‘Military’ marks should be handed over to the defence department duly collecting the charges due. Handing over of such articles to Police/Excise/Defence authorities should be advised to CCM and Traffic Accounts Office. While articles of dangerous, perishables or offensive nature are handed over immediately, all other articles should be handed over only after 7 days. Gold and Silver jewellery, if not claimed within 7 days, should be sent to CCO in a sealed cover thro’ special messenger.

4) 5) 6) 7) 8)

9) 10) 11) 12) 13) 14) 15) 16) 17) 18)

The articles in the sealed cover will be verified and weighed by CCO in the presence of an Accounts Officer. Then the articles should be sent to the Mint Officer. Other valuable articles like Camera, Watch, Costly Pens, Spectacles, etc. if not claimed within 24 hours will be disposed as per the instructions of Sr.DCM. All Currency notes and Coins found as lost property must be accounted as ‘Miscellaneous receipt’ and remitted along with station earnings on the day. A detailed report with particulars of remittance should be sent to CCM to arrange refund when there is a claim. Lost property of perishable nature should be sold in public auction after the expiry of 24 hours or earlier if they are likely to become offensive. The amount realized should be remitted as a ‘Misc. receipt’. Sales details with list of bidders should be advised to the Sr.DCM and Traffic Accounts office. Unclaimed animals and birds also should be sold in public auction after the expiry of 24 hours in the same manner as perishables. Feeding charges if any should be recovered as per instructions from Sr.DCM.

Disposal of undelivered consignments Any goods booked under Railway Receipt but left undelivered for want of claim at the destination is called undelivered consignment. 1. After 7 days, a notice of removal under Sec.83 & 84 of Railways Act, 1989 will be served on the owner of goods by registered post with acknowledgement. 2. If address of the consignee is not known the notice of removal should be served to the consignor. 3. If the goods are not taken delivery even after the expiry of 7 days notice period, the goods should be auctioned at the destination or transferred under free invoice to nearby station nominated by the Railways. 4. Undelivered RMC may be disposed as per the instructions of Sr.DCM. 5. Undelivered perishables should be sold after 24 hours or earlier, if they become offensive.

PROCEDURE FOR DISPOSAL 1) All endeavours should be made to handover the goods to the Railway department, on joint valuation by the representatives of Commercial department and the department taking over the goods. 2) If goods are not acceptable to the Railway departments they may be disposed off by public auction. 3) Excisable or prohibited articles should be made over to the authorities concerned under acknowledgement. 4) The details should be advised to the CCM and Traffic Accounts for realization of the amount due to Railways. 5) Atleast 7 day’s notice of the sale by public auction will be given by an advertisement in the local newspapers. 6) The advertisement should have the details of time, date & place of auction and the nature of goods. 7) In case of perishables, a notice may be pasted in the goods shed and other places in the same station. 8) If perishables available in large quantity, it should be advertised in nearby market, if any. PROCEDURE FOR AUCTION SALE 1. Goods should be separately auctioned, unless auction of goods of same nature in one lot is likely to fetch better price. 2. Before commencing the auction, conditions of auction sale should be announced. 3. The Railway reserves the right to withdraw any goods from the auction for which the offer is not acceptable. 4. A reserve price is fixed for the goods to be sold. 5. It should be ensured that no pool exists among the bidders to keep the prices at minimum. If exists all possible efforts should be taken to break the pool.  Name and address of every bidder should be noted and preserved for record.  Names and addresses of the three highest bidders should be recorded and their signature obtained.  All records related to fixation of reserve price, sale list and bid sheets should be kept in safe custody. 6. The highest bidder on the fall of the hammer is considered as the purchaser unless the bid is lower than the reserve price.

 If the reserve price is not bidden in the first or second auction, the auctioning officer may be empowered to dispose the goods at a price up to 20% below the reserve price.  If bid up to 20% below the reserve price also could not be obtained, with the approval of Sr.DCM, further lower price cam be quoted.  In case of Scooter/Motorcycle the ownership should be found out from registration numbers and they should be contacted.  In case of the books, the publishers may be contacted to identify the owner.  All possible efforts should be taken to connect the unconnected goods, since the desired price may not be realized in the auction. 7. No Railway Servant is allowed to participate in the bid either directly or indirectly. 8. Sale proceeds must be collected in cash and remitted to cash office on the same day. 9. Any restriction/ban imposed by State/Central government on the sale of the goods should be strictly observed. 10. The same is witnessed by the CMI & TIA. 11. Auctioned goods should be removed within the period allowed otherwise wharfage should be collected. 12. A sale register should be maintained with full details of auction sale in which the supervising officials should sign in token of the correctness of the details. 13. An auction sale statement should be prepared in duplicate and one copy is submitted to Traffic Accounts along with balance sheet.
FIXATION OF RESERVE PRICE (Ref:RB No.77/Tc-III/53 dt.17/01/1983)

1) The CMI should ascertain the current market price of the goods. 2) If trade invoice/beejuck is available in the package, the price given therein can be adopted. 3) In case of standard items of popular brand, market price can be obtained from the authorities distributors/wholesale dealers in the local market. 4) In case of non-standard items, rates given in newspapers, wholesale rate quoted by reputed manufacturers of merchants in local market for stuff of same or near about quality, bulk, grade, condition, etc., should be adopted to fix reasonable market price.

the value of which cannot be easily determined. 12) It should be given to the staff conducting the auction only on the day of auction. the stations should be again categorized. Earnings of the year 1995-96 was taken as the base year and most of the stations were categorized already. 10) The CMI should submit his proposal to fix the reserve price. 7) The GM may sanction the expenditure on outside expert’s opinion. the Rail user expects much move from the system. certain standards to be followed in the facilities provided to them at the station. PASSENGER AMENITIES With the quickening pace of modernization. technical officers of Railways should be consulted to fix the reserve price. 9) In case of damaged articles a further reasonable reduction in reserved price commensurate with the condition of the articles could be made. All suburban stations .5) In case of machines. etc. scientific instruments. The categorization will be reviewed every five years. But the reserve price will be fixed by the officer authorized to conduct the auction. Based on the passenger earnings of 2000-01. To be able to fulfil this increased expectation on the part of rail users. reduction of aboutn20% of the verified market price of articles of almost similar nature could be allowed. electrical goods. Stations have been categorized into SIX depending upon their passenger earnings. opinion of an outside expert may be sought in case of goods of special nature. Categorisation of stations: “Annual Passenger Earnings” is an important parameter to decide the category of a station to provide passenger amenities. sophisticated imported articles. due consideration needs to be given to the passenger amenities from the point of view of passenger traffic. The stations are divided into six categories for provision of necessary amenities. 6) Whenever it is necessary. the value of which cannot be easily determined. While planning for provision\augmentation of stations. 11) The reserve price should be fixed well before the auction and kept confidentially. 8) To fix reserve price for articles in sound condition.

which are considered desirable to improve customer satisfaction and interface process at the station. Availability of these amenities at the prescribed scale at all stations will have to be ensured. D Non-suburban station with passenger earnings between Rs. These were earlier termed as ‘Basic Amenities’ or ‘Infrastructural facilities’ and now called “Minimum Essential Amenities”. Recommended Amenities The amenities to be provided as per recommended norms are called “Recommended Amenities”. 6 Crores Stations of Tourist importance or an important Junction (To be decided by GM. E Non-suburban station with passenger earnings less than Re.One crore F Train Halts. Desirable Amenities: The amenities. 3 crores and Rs. These amenities should be provided based on the need and relative importance of the station. The quantum of these amenities would depend upon the category of the station. . the Railway need not wait for provision of all the recommended amenities. 6 crores and above B Non-suburban stations with passenger earnings between Rs. Once the ‘Minimum essential amenities’ are available at a station. Minimum Essential Amenities: When a station is constructed certain minimum amenities should be provided at all the categories of stations.have been categorized as ‘C’ to give higher priority in view of large volume of passengers using them Category Type of station and Passenger Earnings per annum A Non-suburban stations with passenger earnings of Rs. Amenities over and above the prescribed minimum scales will continue to be provided at stations. To provide the desirable amenities. further augmentation of these amenities as per the norms should be done. 1 crore and Rs. 3 Crores. are called “Desirable Amenities”.) C All suburban stations.

of counters) Drinking Water Waiting Hall STATION CATEGORY C D E 07 04 02 06 taps Per PF 15 Sq. A 15 12 Taps per PF 100 Sq. 6 6 200 Sq.Low .m. Per PF 06 taps Per PF 30 Sq.m. A Yes Yes STATION CATEGORY B C D E Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes --Yes Yes Yes Yes Yes Yes Yes -- F Yes Yes ------Yes Yes* ----Yes -- SCALE OF MINIMUM ESSENTIAL AMENITIES AT STATIONS AMENITES Booking facility (No.m Per PF F 01 1hand pump Per Stn. 4 4 50 Sq.High .m Per PF 01 tap or hand pump 15 Sq.m 10 10 400 sq. Per PF B 10 12 Taps per PF 50 Sq.m.m.O Cum Waiting --------Shady trees On PF Urinals Latrines PF Shelters 1 1 Shady trees On PF .m.B.Rail level Drinking Water-Piped Yes . 4 2 200 Sq.m.MINIMUM ESSENTIAL AMENITIES AT EACH CATEGORY OF STATION AMENITES Booking facility Platfrom .m. 10 Sq.Hand Pump Waiting Hall\Shed Yes Seating arrangement Yes Platform Shelter Yes Shady Trees Lighting Yes Fans Yes Urinals Yes Latrines Yes Foot over bridge Yes Time Table Display Yes Clock Yes * Where trains stop at night.

Recommended and Desirable Amenities to be provided should be separately drawn station-wise for each route. .Seating arrangements 100 75 20 50 Per PF Per PF PER PF PER PF DESIRABLE AMENITIES 10 PER PF -- AMENITIES Retiring Room Waiting Rooms------Common Separate for Upper & II class passengers Separate for Ladies Cloak Room Enquiry NTES IVRS PA System Water vending machines\Chilling plants Water Coolers Bathing facilities Book stalls & other essential good stalls Refreshment Room Catering\Vending stalls Parking Area Train indicator board Public phone A Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes STATION CATEGORY B C D E Yes -Yes -Yes -Yes ---------Yes Yes -Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes -Yes --Yes -Yes -Yes -Yes Yes Yes Yes -Yes ----Yes Yes --Yes Yes ------------Yes ---- F ------------------- Augmentation of the existing amenities in a planned manner Preparation of Master Plans The Zonal Railway should carry out a survey of available amenities at stations in relation to the Minimum Essential Amenities. B & C – Categories” of stations. Since most of the passenger traffic is handled in “A. All minimum Essential Amenities should be provided as per the scale immediately at all classes of stations. The Master Plan for each station should show the amenities required. Recommended and Desirable Amenities. From the results of this survey a list of Minimum Essential Amenities. priority should be given to provide amenities at these stations.

1) 2) 3) 4) 5) 6) 7) 8) All toilets should be gradually converted into “Pay & Use” toilets. Efforts should be made to make the stations cooking free and reduce the number of trolleys. possibility of providing Foot Over Bridges directly to the circulating areas should be examined as it decongests main . Low expenditure amenities items for which funds can easily be earmarked. Wherever circulation areas are redesigned. Keeping the normal allocation of funds. a time frame is allocated to each phase of the General Action Plan. even if the later are in higher priority. All stalls should made modular and reduced in size as per the Board’s guidelines. in the same order. In the circulating area proper traffic movement flow plan should be made.” OTHER IMPORTANT ASPECTS While upgrading the amenities at a station. wherever stations are congested. under the Plan Head “Passenger Amenities” in view. the following aspects should be given due consideration.These lists should form basis for drawing up the Divisional Action Plans. can be taken up earlier than those requiring heavy outlay. Action Plans so formulated should then be amalgamated into one General Action Plan and inter-se priorities for different works assigned. There should be efforts to reduce the stalls to the bare minimum and their measures be limited for activities essentially connected with traveling. Augmentation of any facility thereafter at stations should be charged under Plan Head “Passenger and other user Amenities. The no. All the signages should be standardized as per the norms. A green path should also be developed. Minimum Essential Amenities as prescribed shall always be provided as a part of the concerned plan head at the time of construction of new stations. a plan should be made for each station. of trolleys and catering stalls under the covered shed should be reduced to a minimum. recommended amenities and desirable amenities are filled up. altered. Remaining works should be prioritized in a manner such that gaps in essential amenities. As scarcity of funds exists in Railways an existing amenity should not be substituted with more expensive one. For location of signages.

water trolleys.platforms. wherever considered necessary. light\fans. Various efforts are taken by the Railways to achieve the above objectives so as to improve the Railways image among the user public. Maintenance staff shall carry out repairs to bring back the amenity to functional order immediately on intimation by the SM. The SM’s of stations shall be provided with adequate imprest cash. • Ensure adequate passenger amenities in trains and at Railways stations. The details of passenger amenities at stations should be updated and sent every year to Board in floppies\E-Mail in the format circulated. clock. where Railway maintenance staffs are not available. There should be proper segregation of incoming and outgoing passengers. 10) The Enquiry and Booking offices should be specially brightened up at all the station. to avoid unnecessary pressure on amenities. 12) All stations irrespective of their category should be scaled from all directions so that there is specified exit and entry and incidence of unauthorized entrants is reduced. But due to paucity of funds the Railways could not provide many amenities at stations to the standard as expected by the user public. to enable them organize expeditious repairs to small items of passeneger amenities such as hand pumps. 9) Automatic vending machines should be encouraged to replace existing vending stalls. 11) The illumination at the stations should be improved. urinal\latrines and furnitures at the stations. WORKS PROGRAMME The Citizens Charter on passenger services of Indian Railways incorporates two prime objectives of Railways towards customer satisfaction as follows: • Set notified standards for various services wherever possible. Additions\modification to the passenger amenities available at the stations should be incorporated in the database and Passenger Amenities Management System (PAMS) and printed in the form of Passenger Amenity Booklets of each division for the financial year. Works on passenger amenities should be proposed by the Commercial department . taps. MAINTENANCE OF PASSENGER AMENITIES The amenities provided at all the stations should be maintained in good working order.

While compiling the works programme the times should be grouped as follows. 2) The same may also be initiated based on the inspection notes of GM. Proposal of new work: 1) The proposal for the annual works programme should be developed at the divisional officer level. 5 lakhs should be initiated. On approval by DRM. 5 lakhs each. . with necessary justification. level. 3) Works costing up to Rs. HODs and DRM. • Works approved in the earlier years but estimates for which have not been sanctioned by 30th June of the previous year to the programme year. • New works • Works in progress • Works approved in earlier years.5 Lakhs each (ii) Works costing up to Rs. Users’ amenities are considered sufficiently important as to have a separate ‘plan head’ in the works programme. The works are further grouped into sub-groups as follows: (i) Works costing more than Rs.and to be executed by the Engineering department on approval and according to availability of funds. should be included. 5 lakhs should be initiated by the Divisional officer concerned but developed and processed by the HOD of the sponsoring department at H. Works costing more than Rs.Q. To identify prioritized areas of passenger amenities. an effective planning is essential. 5 lakhs): 1) 2) The Divisional officer should submit the proposal to DRM for approval. which have not been commenced and on which no expenditure incurred till 30th June of the previous year to the programme year. developed and process by the Divisional Officer of the sponsoring department. the proposal is sent to DEN with details of proposal and rough sketch. An alphabetical index of works and various managerial information regarding expenditure position relating to passengers and railway users amenities etc. Developing and processing of proposals( upto Rs.

and draw out an engineering plan. 5) Also copies are sent to the DSTE. the proposal will be sent to CE for execution. CONSULTATIVE COMMITTEES Various consultative committees have been set up to afford opportunities for consultation with rail users on matters related to . & DEN to work out the cost estimate pertaining to their portion of the work. DEE. 5 lakhs will be developed and processed by the HOD as above.  Works costing above Rs. for which the HOD will give necessary clarification and modify the proposal if necessary. 7) The justification for the proposal duly concurred by DAO will be submitted to the HOD of the sponsoring department. one copy of the proposal will be returned to the HOD. 11) The proposal may be accepted/rejected/questioned about the justification. 4) The engineering plan after approval of DRM will be sent to the Divisional officer in 4 copies.3) The DEN will check the feasibility of the proposals at the site and suggest modifications if any. 10) With the comments of FA&CAO. the HOD will forward the proposal to CE for verification of cost. Important aspects to be given in the justification for improvement of passenger amenities at a station a) b) c) d) e) State the existing and proposed waiting room accommodation. the Divisional officer will get the concurrence of DAO. 8) On satisfaction about the need for the work. State the existing and/or proposed refreshment room. 6) On receipt of cost estimate from DSTE. DEE & DEN. State water supply facilities existing and required Justify the requirement of Foot Over Bridge. 9) Then the proposal will be submitted to FA&CAO in the prescribed form in duplicate. 12) On acceptance by FA&CAO.20 lakhs will be developed and processed by the HOD and submitted to CE who will obtain the Board’s approval to include the same in the annual works programme.  Works costing above Rs. What are the minimum passenger amenities on the yardstick given by the Board available and required? f) Give a short note on required staff and existing staff and accommodation required.

ZRUCC: a) It is a committee formed at the Head Quarters of the Zonal Railway. 3. 5. It functions under the head of Minister of Railways.  Railway service matters from the point of view of Zone as a whole.  Matters referred by Zonal Railway and Ministry of Railways.  Improvement of services provided by the Railways. b) It considers. Divisional Rail Users’ Consultative Committee (DRUCC) Zonal Rail Users’ Consultative Committee (ZRUCC) National Rail Users’ Consultative Council (NRUCC) Suburban Rail Users’ Consultative Committee (SRUCC) Station Consultative Committee. 2) 3) . 1) DRUCC: a) It represents the Railways Users in the Division and it functions under the head of DRM. NRUCC Or by the Railways. NRUCC: a) It is a council formed at the Railway Board and represents the users of Indian Railways as a whole. 4. The committees and their functions are briefly discussed below: The various committees are: 1.  Provision of passenger amenities  Proposals regarding opening of new stations.  Timetabling of trains running over the division. b) It suggests on the matters related to. 2. It functions under the head of GM and represents the rails users’ of the Zonal Railway.  Matters referred by DRUCC and arising from the reports of DRUCC.passenger amenities and other services provided by Railways.  Any subject of general interest represented by rail users or reffered to them by ZRUCC.  Such matters related to the services provided by Railways and any other matter referred by the Minister of Railways. b) It considers.

 They are authorized to inspect passenger amenities and to associate with ticket checking staff in ticket checking.which may be included in the agenda as desired by individual member of Council with prior approval of Chairman.  introduction of new trains and special trains during festivals. deficiencies and irregularities in the services provided.  for improvement of passenger amenities at respective stations. Mumbai and Kolkatta to consider the problems related to suburban rail users. c) Also they can suggest on the timetabling of suburban trains where they are not affecting the timings of main line trains.  improvements in the railway services by critically analyzing the late running of trains. 05) Station Consultative Committee: a) These committees are set up at the stations in District Head Quarters and at stations in important industrial. c) The committee can suggest. in consultation with the appropriate DRUCCs. .  The committees/council will ordinarily meet three times in a year. Functioning of the Committees/Council:  The members are nominated for a period not exceeding two years. b) They function under the head of COM. composition of the committees and their functions. discipline and appointment should not be brought before the Consultative Committees or Council. b) The GM can decide the stations where these committees can be set up.  To attend the meetings.  Questions related to staff. etc. commercial and political centres. etc. Such matters related to the services. 4) SRUCC: a) Such committees have been set up at Chennai. the members are provided with Complimentary passes and Travelling Allowances will be paid to them as prescribed from time to time.

During 2002-’03. 2001) all over Indian Railways as Model Stations to provide with upgraded passenger amenities. Initially 61 stations were selected for this purpose and 287 stations are now declared (in Dec. These station includes.e.  About 50 food plazas at various stations to provide hygienic food to the passengers. MODEL STATIONS The concept of ‘Model Station’ was introduced in June 1999 for the purpose of providing passenger amenities and to be upgraded as a model for other stations. The Indian Railways Catering and Tourism Corporation Ltd.PASSENGER AMENITIES YEAR: The year 2002-’03 has been declared as the “passenger Amenities Year”. i. the IRCTC will commission and implement.  All ‘A’ category stations (and)  selected stations under category ‘B’ to ‘E’ i) Provision of passenger amenities is linked to the category of the station. iv) The revised list of ‘Desirable Amenities’ to be provided at every model station is furnished below: (‘F’ category stations are not included in this list) .  Plants for manufacture of packaged drinking water under the brand name “Rail Neer”. to stress the importance of the amenities to be provided by Railways. iii) A master plan containing the desirable amenities should be made and they should be provided at the model station according to their category. (IRCTC) has been established for upgrading and professionalizing passenger amenity services on Indian Railways. ‘A’ category station should be provided with much improved facilities as compared to the model station of other categories.. ii) The ‘Desirable Amenities’ are treated as yardstick to provide upgraded amenities at a Model Station.  A pilot project for provision of 6 budget hotels.

Such trains/coaches can be ordered on request from the passenger as follows. A special train can be ordered or a special coach can be attached in regular trains for. Special trains/coaches also can be ordered to meet the specific needs of passengers. .Facility Retiring Room Waiting Room Common Separate for Upper & Second class Separate for ladies & Gents Cloak Room Enquiry NTES IVRS Public Address system Water Vending Machines or Chilling Plants Water Coolers Bathing facilities Stalls of essential gods Refreshment Room Catering/Vending stalls Parking/Circulatory area Washable apron (Where trains originate/terminate or stop for Longer periods in the morning) Train Indicator Board Public Phones Signages Modular Catering Stalls AVMs Pay & Use toilets SPTMs Computerization of complaints SPECIAL TRAINS Station category A B C D E Yes Yes -Yes -Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes --Yes Yes -Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes -----Yes --Yes -Yes -Yes -Yes Yes -Yes ---Yes ----Yes Yes --Yes Yes --------------Yes --- Yes --Yes --Yes Yes -Yes Yes Yes Yes Yes Yes Yes --Yes ------ Apart from the regular train/coach services operated by the Railways. i) Clearance of waitlisted passengers/extra rush or trains run in public interest during special events.

30. and the minimum composition will be 15 coaches.will be refunded after adjusting any amount due.will be adjusted towards fare at the time of booking and Rs. . after completion of trip. the registration charge is Rs. 30. detention charges. on completion of the tour On the basis of certification of the SM.000/-. 20. i) ii) iii) First priority will be given for clearance of waitlisted passengers or to clear extra rush or in the public interest during special events.000/. 1) A registration charge-cum-security deposit at the rate of Rs.per coach should be paid at the proposed journey commencing station. Third priority shall be given to special trains run on FTR (Full Tariff Rate) Registration charges-cum-security deposit for special/FTR trains. 6) Luggage and animals of the circus party will be separately charged at the rates notified.ii) Chartered coaches/trains requested by IRCTC to promote tourism. It shall be as under. 2) Half of the registration charge will be retained as security deposit and the balance amount will be adjusted against the fare at the time of booking. Minimum Distance. Second priority be for Chartered trains requested by IRCTC. Rs. the CCM will arrange the refund if any.000/. 5) Out of Rs.000/. on receipt of party’s application. 10.000/... iii) Special coaches/trains on specific request other than by IRCTC on FTR (Full Tariff Rate) PRIORITY FOR PROGRAMMED TRAFFIC PRIORITY FOR RUNNING SPECIAL TRAINS. 3) The security deposit refundable after adjusting any amount due viz. 10. 4) In case of Circus Special Trains. Composition & Charges for FTR SPECIAL TRAINS: i) The minimum distance for a special train will be 500 kms.etc.per trip.

Ref. 518/III/P/Vol. the minimum chargeable distance will be 200 kms. For clearance of extra rush or for clearance of waitlist. with minimum composition of 10 coaches.ii) iii) iv) v) vi) It is also applicable for a chartered Rajdhani type train with entire AC COACHES. VI dt. no minimum composition or distance is applicable. or for train running in public interest. In the case of special trains over Hill Sections (NG).: C. The charges will be levied for the actual number of passengers traveling or the MCC of the coaches whichever is more.14/12/2001 For charging of special trains/coaches at Full Tariff Rates. Full adult Express farer of the concerned classes will be levied both for adult and child passenger No concession is allowed for booking a special train except in the case of Kisan specials and Industrial Workers specials. The charges should be levied on pro-rata for extra passengers if any. The service charge will not be collected on Circus Special Trains. but not below minimum charge of 10 coaches plus service charges at 15% and the detention charges. 9) The charges should be paid in full atleast 48 hours in advance of the departure of the train. CHARGES FOR SPECIAL TRAINS: 1) 2) 3) 4) 5) 6) 7) 8) The charges will be calculated on point-to-point basis.  the minimum composition will be maximum permissible load (no. If any journey involves more than one gauge. the fare should be calculated separately for both gauges. A service charge of 15% will be levied on the total fare. . the service charge will be levied only on fare and not on any other charge/surcharge including safety surcharge. before or at the time of commencement of journey. For a chartered Shatabdi type train with entire AC coaches. The composition can be changed on request of IRCTC. Extra passengers if found traveling without payment of charges will be charges at pro-rata with penalty as per rules. of coaches) for the concerned section.  the minimum chargeable distance will be the chargeable distance (inflated) of the whole section subject to a minimum of 200 kms.

182/Rs. without allowing any free time detention charges will be levied as follows: Detention charges per hour or part per Bogie BG MG/NG Rs. 11) Empty haulage charges will be levied for flat 200 kms. 12/- Identity Card to the passengers:  The number of passengers traveling should be indicated in the application for special train at the time of booking and the list of their names should be submitted to the SM of the originating station before commencement of journey. DETENTION CHARGES: If the party detains special train at starting/enroute/destination stations. running of the special train will be countermanded and the registration charge-cum-security deposit will be forfeited.e.10) Otherwise.f. No empty haulage charge will be levied for IRCTC Coaches.130/Rs. Rs. Per coach for every journey at the prescribed rates including single journies also.  The identity token should be signed and stamped by the SM of the originating station. 221/Rs.104/- 13) Type of coach AC Coach Partial AC Coach Non AC Coach  The detention charge is levied subject to a minimum of Rs. 16/Rs.163/Rs.per Bogie. 15/01/1998: Type of Coach AC Coach Partial AC Coach Non AC Coach 12) Rate per Coach per km. 130/Rs.  It is levied during the halts of the special train at the request of parties. Empty haulage charge Rates w. 14/Rs.  SM can permit name change subject to a maximum of 10% of the group due to illness or any other emergencies till departure of the special train.600/.  The organizer should issue an identity token to each passenger as an authority to move in and out of the enroute station. .

. route and halts required enroute. 15) FOLDER:  CCM will issue a folder to the party containing details of sanctioned tour programme before commencement of journey. etc.on BG and Rs. etc.  Arranging the special train. CPTM can permit special trains within 30 days in advance of the journey also. duration of halts. programming the movement.  The application should be submitted atleast 30 days in advance of the journey and not more than 6 months. Minor halts of a few minutes for passengers to entrain/detrain are not charged. party should submit an application to the CPTM through the SM of the originating station. the CCM will refund the registration-cum-deposit charge on surrendering the money receipt with an application. in the folder under his seal and sign.  On arranging the train.  Also columns are provided in the folder to record the details of tour programme actually followed. will be the discretion of the Railway.  The party should ensure that all relevant columns in the folder are filled in by the SMs of tour commencing station. etc.  The SM has to fill up the details of detention to the train.  For keeping the engine in steam or detention to Electric/Diesel locomotives the charge is levied at the rate of Rs.250/.  The SM should not start the special train unless all relevant details are recorded in the folder.on MG/NG per hour or part per engine. 14) Procedure to apply for special train:  On payment of registration-cum-deposit charge.150/.  The application should contain the number of passengers.  If the special train could not be run. destination. CPTM will issue the approved programme for the entire tour to the party with copies to the stations concerned and operating branch. halt stations enroute and at the destination. type and carrying capacity of the vehicles attached in the train. etc.

10-71 on BG and Rs.per day as follows: 1) Actual Fares for the seats provided in each class of bogies for the distance the train is run subject to a minimum of Rs273-80 per km per train on BG and Rs. 94. fares for the actual seats provided in each class of vehicles for the distance the train is run subject to a minimum of Rs. the party should submit the folder with all necessary entries to the SM of the tour originating station within 15 days of completion of the tour.17-38 on MG/NG per km per 4-wheeled vehicle. 2) 3) 4) .34-80 on MG/NG per bogie.10-71 on BG and Rs. Over BG/MG/NG. For any additional coaching vehicles attached. of the chargeable SPECIAL TRAIN FOR FILM SHOOTING  A special train consisting of maximum of 4 bogeis or equivalent excluding brake van may be arranged for shooting of films on party’s request. Within four hours before scheduled Departure of the train and after wards Countermanding charges 10% of registration fee 25% of the chargeable fare 50% fare.000/. 16) COUNTERMANDING CHARGES: If the party cancels the request for a special train. Charges for the luggage loaded in the vehicles at luggage scale rates subject to a minimum of Rs.  The SM should submit the folder to Traffic Accounts office for verification of the charges due for the tour. On completion of the tour. Charges for luggage loaded in the luggage portion of the brake van at luggage scale rates subject to a minimum weight for charge for 60/40/35 qtls.1738 on MG/NG per 4-wheeled vehicle or Rs.341-60 per km per train on MG/NG.21-40 on BG and Rs.  The charges will be collected subject to a minimum of Rs. countermanding charges will be levied as follows: Time of cancellation Up to two days earlier than the scheduled Day of journey One day in advance excluding the day of Journey and up to four hours before Scheduled departure of the train.

 If light engine is run to/from any depot. Rs. 2) Second priority will be given for clearance of waiting list passengers.150 per km A service charge of 15% will be levied on the overall charges.104/-  The detention charge is levies subject to a minimum of Rs.per hour or part on BG and Rs150/.  Half of the above charges will be levied for 4-wheeled vehicles per 12 hours of part.221/Rs.per Hour or part on MG/NG. SPECIAL COACHES/SALOONS IN REGULAR TRAINS.250/. Type of Coach AC Coach Partial AC Coach Non AC Coach Detention charges per hour or part per bogie. Except the following conditions.182/Rs.per km on MG.41/. all other rules and conditions are applicable as for “Special Trains”. BG MG/NG Rs.130/Rs. Priority for attachment of special coaches in regular trains: It shall be as under: 1) First priority will be given to advance programmed chartered coaches of IRCTC.163/Rs. 8) .5) 6) Dining car & Kitchen car if any will be charged @ Rs. Detention charges will be levied for detention on party’s request as follows.130/Rs. 3) Third priority will be given to coaches attached on FTR (Full Tariff Rate) In addition to special coaches.per km per car on BG and Rs. 600/per Bogie. an empty haulage is levied @ Rs. 45/. 7) Detention to Engine is charged as follows.  If detained at the place of shooting. tourist cars and saloons can also be attached with regular trains as per the request of the passengers.

It is the responsibility of the party to ensure that all relevant columns in the folder are filled in by the SMs of tour commencing station. The folder entries should be filled up only in respect of halts requested by the party and not operational halts. 4. The special coach should not be detained at the instance of the party more than that specified in the approved programme unless it is requested by the party in writing.000/. halt stations enroute and at the destination. the coaches will be booked only from end to end. Deposit for special coaches for journeys performed by railway employees on Pass/PTO Railway employees and their families on privilege pass & PTOs should pay an amount of Rs. The SM should submit the folder to Traffic Accounts Office for verification of the charges due for the tour. Trains. Incase of Rajdhani/Shatabdi type trains. On completion of the tour. . The distance may be reduced on operating convenience or for business development of IRCTC coaches.  the minimum chargeable distance will be the chargeable distance (inflated) of the whole section subject to a minimum of 200 Kms. FOLDER: 1. etc.Minimum Distance & Charges for Special Coaches: i) ii) iii) iv) v) The minimum distance for charging a special coach will be 500 kms. 2.10. For Mail/Exp. In the case of special coaches over Hill sections (NG). The minimum chargeable distance of 500 kms is applicable separately for outward and return journey. 3. 7.per coach uniformly for carriages/tourist cars/saloons. 6. The SM has to fill up the details in the folder under his seal and signature. the party should submit the folder with all necessary entries to the SM of the tour originating station within 15 days of completion of the tour. CCM will issue a folder to the party containing details of sanctioned tour programme before commencement of journey. 5.

The deposit amount will be Rs. as a marketing arm of Indian Railways in the area of hospitality and passenger amenity and also to promote domestic and international tourism. This deposit is valid for one year irrespective of the Zonal Railway who allots the coach. 8. The amount will be deposited with Northern Railway at New Delhi against a Money Receipt. Security deposit-cum-registration Coaches/Special Trains : charges for chartered IRCTC 1. 4. 7. Permission for block booking by IRCTC : . detention charge. 5. The charges like. At the end of the year. i) They apply through recognized Tourist Agencies who should give a guarantee to the Railways. 6. One Lakh in the name of Indian Railways for coaches to be attached to regular trains. 3. cancellation charge. INDIAN RAILWAY CATERING AND TOURISM CORPORATION Ltd (IRCTC) Introduction : IRCTC was incorporated in 1999. should be paid by IRCTC separately to the concerned Zonal Railway on demand. The IRCTC will request the Zonal Railway for coaches duly enclosing the copy of the above Money Receipt. 2. the deposit may be refunded or renewed for one year at a time as per the request of IRCTC. ii) Their journeys are sponsored by Indian embassies abroad. It will also provide tour packages to religious/tourism important places by strengthening Railway linkages with travel intermediaries. The deposit amount shall not be adjusted towards fare and other charges due for the coaches. etc.15 Lakhs in case of special trains booked by IRCTC. undercharge. It will market the hill railways and isolated lines having tourism potential. The IRCTC will deposit one time lump sum amount of Rs.Exemptions from payment of deposit charges: Tourists are exempted from paying the deposit for reserved carriages provided.

IRCTC will deposit a “Service Charge” as initial deposit.3 Lakhs. and this periodicity should be uniformly maintained for the whole duration.a) Block booking across the counter may be permitted for IRCTC tours on request from an Officer of IRCTC of the rank of Group General Manager (GGM) or above. 6) The tour proposal and the details of specific trains should be submitted to the CCM/PM atleast three months in advance of the first trip and not more than six months in advance of the first trip. • When the train is running in full load and additional coach could not be attached. 5) The itinerary and modalities of the tour package will be decided jointly by IRCTRC & CCM/PM of the Zonal Railway. If the amount exceeds Rs. it . ii. c) All details such as name. should be furnished at the time of booking. 1) As far as possible additional coaches may be attached on Full Tariff Rate (FTR) to the regular train composition for IRCTC tours. the application for earmarking of coaches/berths may be submitted within three months in advance also. It should be paid atleast 70 days in advance of the first trip of the package. Earmarking of Coaches/Berths within the regular train composition for IRCTC value added tour packages IRCTC may book special coaches by regular trains purely for tour packages and such coaches will be known as “Chartered IRCTC Coaches”. 8) Coaches/Berths in the regular trains shall be earmarked on end-toend basis only. It is calculated at the rate of 15% of full adult fares leviable between the pair of stations for the entire tour package. 9) Payment of charges : i. • When the demand is for less than a coach. The CCM/PM may waive the condition of minimum duration of six months. 7) With specific permission from CCM/PM.. 4) The tour periodicity may be of weekly. age. 3) The tour package should be for a minimum duration of six months covering the lean and peak seasons. On approval of the tour package. etc. which is non-refundable. etc. 2) Berths may be earmarked in regular trains for IRCTC tours. iii. The CCM/PM can relax this condition duly ensuring that there is no loss of revenue to the Railways. sex. fortnightly. b) It is permitted for not more than 50 berths in a train at a time or 25% of the accommodation of the class of travel available in the train whichever is less.

etc. etc. so that the names can be included in the chart.Citizens. the coach/berths earmarked will be opened for general booking as per existing rules (60 days in advance). No concession is admissible in fare when coach/berths are earmarked within the regular train composition. In addition a service charge of 15% of the total fare will also be collected. d) Also they are not liable for any damages arising out of any agreement/provision between the tourist and IRCTC. Sr. . The names of the tourist should be submitted to CCM/PM with a copy to CRS/Charting atleast 72 hours in advance of scheduled departure of the train. vii. If any berth falling vacant due to non-joining of any tourist in the train. CCM/PM will approve the booking by giving a written advice with copy to the CRS of the tour originating station. The fares will be collected in full even for children. xii. x. xi. 10) Refunds : a) Amount collected towards the initial deposit (the service charge) is non-refundable under any circumstance. the same will be released to RAC passengers. as per extant rules. iv. xiii. vi. b) If the earmarked coach/berths are cancelled after payment of all charges due.may be paid in three installments. v. The fares will be calculated for the CC of the coach or the actual number of passengers travelling whichever is higher in case of earmarking of coach. c) The Railways are not liable for any damages if the tour package is terminated by IRCTC at short notice. If the names are not given as above. normal refund rules will apply. The fare for each and every subsequent journey should also be paid minimum 70 days in advance of the journey date. fares will be calculated for the number of berths earmarked as per the advance programme. But the whole amount should be paid atleast 70 days in advance of the first trip. ix. In case of earmarking of berths. students. On payment of all charges due.. the coach/berths will be released to waitlisted passengers of the train. If the fares are not paid as above. viii.

The normal Adult fare for the class by Mail/Exp. IRCTC organized value added tour packages – KSTDC : A joint venture with IRCTC and State Tourism Development Corporations will be jointly organizing tours to promote tourism. V dt. . 16/03/2001) COMMERCIAL ADVERTISING Railways’ finances have come under a great strain due to the following factors:  Steep increase in staff cost after implementation of Vth Pay Commission recommendations.Rly. No concession or free passes will be allowed. The tours may be organized on execution of agreements by the concerned corporations.518/III/P/Vol. 15% of the total fare will be levied as service charge. S.. For the actual number of persons carried or the maximum carrying capacity of the coach whichever is higher will be charged.  Drop in earnings due to drop in railways’ market share  Inadequate budgetary support to bear the ever increasing social costs.) are as follows : 1) 2) 3) 4) 5) 6) 7) 8) Either an entire coach in a regular train service may be earmarked or additional coach may be attached for exclusive use of IRCTC. Railways will not be liable for any damages if the scheme is terminated at short notice. The above instructions are valid on experimental basis for a period of six months for tours organized by IRCTC from April to September 2001 (No. The itinerary will be jointly decided by IRCTC.c. All charges must be paid atleast 48 hours in advance of the scheduled departure of the train. and KTDC.e) IRCTC will be responsible to ensure compliance of all conditions laid down by the Railways. The conditions for such tours organized jointly by IRCTC and KTDC (Kerala Tourism Development Corporation Ltd. Empty haulage charge and detention charges will not be levied provided the party vacates the coach at the destination.

Operate. Commercial Advertising Modern approach to Commercial Advertising : As a carrier of more than 12. Trains. sauce/pickles. The following thrust areas have been identified to generate additional resources through commercial advertising in addition to regular methods of displaying advertisements in the Railway premises. ii) Passenger trains: Coaches of prestigious trains like Rajdhani/Shatabdi express could be offered for exclusive advertising rights both interior and exterior of the entire train. Separate packages could be developed for suburban and other Exp/Pass. tea/coffee bags. i) Freight wagons: Advertising space on the panels of freight wagons could be offered.  Requirement of additional funds to the tune of 3000 crores to implement the recommendations of Railway Safety Review Committee. etc. Some of the non-traditional sources adopted by the Railways are as follows: a) b) c) d) e) Own Your Wagon Scheme (OYWS) Build. as the wagons are moving in various geographical areas of the country. Sponsorship of uniform for ‘onboard’ staff and subsidized supply of products like toiletries. Increased requirements of pensionary benefits due to resumption of retirement during 2000 – 2001. it is imperative that supplementary revenues must be apart from traditional resources. iii) Railway Level Crossings: Level crossing gages where road users are made to wait for the passing trains could be offered for commercial publicity. Lease & Transfer Scheme (BOLT) ‘Right of way’ for laying optical fiber cable along rail network Commercial use of Railway land and air space.5 million passengers daily through 6867 stations located across the nerves and bones of the country ‘advertising’ has enormous potential to explore. . could also be offered. In this context.

Firms may be asked to sponsor the renovation of furniture at passenger interface points like. Though the earnings may be less the offer will reduce the railways’ expenditure on maintaining these items. Reservations Forms. LCD display boards. Reverse side of Computer Printed Tickets. . offices of frontline supervisors. Various advertisement media provided by Railways : Various advertisement media are offered to suit the specific needs of advertisers to reach selected group of people. vi) Other areas of advertising : Apart from five major areas as detailed above. The offer could be made more attractive by offering the rights for longer periods. For the purpose of tariff fixation the media are classified as ‘Standard media’ and ‘ Non-standard media’. which offers striking appeal at low cost among the net users. vii) Advertising on Railway websites : Web advertising is a dynamic field.  Posters including cinema posters are classified as standard media for which Railway Board fixes the tariff. waiting halls. platforms. Touch Screen terminals for enquiry. The industrial & business houses can advertise their products through banner. etc. panel and links. The Southern Railway web sites (Southernrailway. v) Railway Stations : Apart from generating revenue. which attracts huge number of visitors.iv) Sites along Railway track: Revenue generation could be attempted by offering advertising rights along track-side especially within the city limits nearing the stations where the speed of the trains are slow down due to bunching arrival of trains in the terminals. offer a comprehensive range of travel-related information. there are miscellaneous areas such as Public Announcement channels in trains and and srailway. commercial advertising at stations can be utilized to uplift the overall view of the station premises.

The Secrecy about the space requested will be maintained.per lakh tickets for a text of size 2. single/double sided. printing and supply should be borne by the party) 11) Lunch cardboard boxes.per one-lakh slips for a text of size 2. MSB)  ‘A’Class (SA.10. details of location with a rough sketch. TPJ.5” X 2. SBC)  Special Class (CBE.. TBM. Also coast of stationery. 12 to 14 are dealt at Headquarters only) General conditions to accept an offer to display advertisement : 1) Stations are classified into four for the purpose of levy of charges as follows:  Super Class (MAS.5”) 14) Timetables (Item Nos. Hoardings Illuminated advertisements such as neon sign. PDY)  ‘B’ Class (Not otherwise classified)  ‘A’ Class stations are charged 20% higher than ‘B’ class stations. On receipt of party’s offer for advertisement space at a station. DCM will entrust the case to a CMI for spot inspection.3500 for double sided in addition to electric energy charges) 7) Display inside the coaches 8) Painting advertisements on the outside panels of EMI coaches and Diesel cars (Red and Green colours should not be used) 9) Painting advertisements on boundary/building walls 10) Coach indication slips (Rs. etc. 4) Electronic display boards 5) Sign blow clocks 6) Electronic digital clocks (Rs. 1) 2) 3) 2) 3) 4) . 12) Closed Circuit TV 13) Advertisement on reverse side of CPT (Rs.000/. Painted boards & enameled plates. ordinary position or special position.4000/. show cases. size.2000 for single sided and Rs. The offer should contain medium of advertisement. total number required. MBM.5” X 6”. glow sign boxes. etc. The following are various non-standard media for which the tariff can be fixed by respective divisions with approval from Head quarters.

iv.5) 6) Sites above booking windows. the site can be allotted as per priority of date of requisition. vii. If site could be allotted. The rental charges should be paid within 21 days to the Divisional Cashier and the remittance particulars should be sent to DCM. as they like. which are in vantage positions. Sites. When more than one party demands the same site or the rental charges are not paid within 21 days. MS. ft. SBC. are treated as special positions and will be charged 50% extra. CBE. The party should execute a contract form. DCM will intimate the party duly fixing the tariff. Free movement of passengers should not be affected in the least. Display on the site should not obstruct view of other display materials. inside the Foot Over Bridge. . The party should fix/remove the material if the size is more than 50 sq. the advertiser should remove the material within a month’s period. Whether the site comes under Special/Ordinary position will be decided by the CMI. iii. MDU. Safety of travelling public should be ensured in displaying the advertisements. Any change in the advertisement material during the contract period is permitted with prior approval of DCM. Site Inspection : i. MYS. The advertiser should pay advertisement tax if any directly to the local government bodies. Display should not be hindrance to the normal railway working. vi. On termination of contract. The advertiser should supply the materials required to fix the advertisement and the Railway will fix it in the site. 7) 8) 9) 10) 11) 12) 13) 14) 15) 16) After site inspection with CMI should certify whether the site could be allotted or not. Otherwise Railways will dispose the material. Allotment of sites at Model Stations (MAS. TPJ & TVC) should be with prior clearance from CE and approval from CCM (PS). v. Subways above the entrance and exit passages. The advertisement material should be delivered at DCM office or at the station concerned by the advertiser. The site if offered should not obstruct the railway signals ii.

the existing contractor may be allowed to operate the system on collection of proportionate charges. if any should be advised to DCM. 18) SM should maintain an advertising register with details of all advertisement materials displayed in the station with their date of expiry of the contract. CCM (PS) will fix reserve price for each station at the initial stage. If contract is awarded to any other person than the existing contractor. keeping the material displayed. A canvasser is authorized to request for advertisement sites on behalf of his client and offers his services in remitting the rental charges. . the divisions award the contract for CCTV. A canvasser should have –  Previous experience in advertising  Leading firms or any publicity media as his clients. etc. the other person should install the system well in time to avoid loss of revenue. displaying the advertisement material in the allotted sites. Otherwise. action should be initiated for renewal of contracts. Contract for CCTV : 1) 2) 3) 4) 5) Headquarters will award contracts for Closed Circuit Televisions normally for a period of 3 years only. the canvasser may collect and remit the rental charges or obtain necessary letter when the client is not interested in renewing the contract. SM should immediately refer the matter to DCM. But Railways enter into contract only with advertisers. 20) If no instructions received till the date of expiry of contract for any advertisement material. Role of Canvassers: In Southern Railway 92 accredited canvassers procure the business of commercial publicity making 70% of the advertisement earnings. At the time of renewal of contract. The canvasser may accompany the CMI during site inspection. Before expiry of the current term.17) DCM will advise the SM regarding permission granted for display of any advertisement material in the station. 19) The SM should check the advertisement materials on display every month and deficiencies. Note: As per the existing instructions.

to undertake the advertising in the Railways.One Lakh – 15 % Commission. Anyhow the efforts can give the expected results only when the travelling publics are co-operating with the Railways. 1989 crimes like dacoity.. thus endangering the safety of passengers and their belongings.20% for the amount exceeding Rs. carpenter. SAFETY OF PASSENGERS. Basic safety measures taken by Railways: (i) High/Medium level platforms for convenient boarding/detraining of passengers. . etc. To ensure safety of passengers and their belongings.000/. Business beyond Rs. painter. LUGGAGE AND PARCELS Railways being the prime mode of transport of passengers and their goods are liable for their safe carriage to the destination. Despite the provision of various penalties for the offenders under Railways Act. (ii) Provision of footboards in the coach to ensure safe boarding/detraining of passengers at low-level platforms. Business upto Rs. Capacity to procure a minimum business of Rs.  Good credentials which should be certified by the CMI after verification of his office. One Lakh . Commission charges payable to the canvasser: The business is calculated on financial year basis. etc. The GRP are responsible to maintain law and order in the Railway premises and the RPF are responsible for protection of railway property/booked goods. the safety of goods depend on security measures taken by Railways. Whenever any firm/individual applies for enrolment as canvasser.One Lakh. become frequent. which will be forwarded to Headquarters for approval and appointment. looting.12.  A separate unit consisting of an artist. Hence the user publics are also educated to ensure better safety during their presence in the railway premises.per year. the CMI should recommend the case on the above conditions. Railways are taking a number of precautions. While safety of passengers depend on safe running of trains.

GRP. (viii) Provision of secret cameras in platforms of important statins to watch the movement of miscreants. The Guard and Staff of AC coaches should ensure provision of fire extinguishers to avoid fire accidents. (vii) Locking of doors and vestibules of coaches during night. Special protection to lady passengers: (i) (ii) To prevent instances of lady passengers put to inconvenience by anti-social elements. (iv) Training of train staff in first aid. Uneven/haphazard loading of heavy consignments should be avoided as they can easily cause derailments. (v) Provision of luggage locking chains in the compartments. if any in the train to prevent running train theft. The Train Superintendent should assist in lodging FIR in case of any crimes committed in running trains. RPF and frontline staff should be geared up to react promptly. The train staff should prevent unauthorized entry of beggars/hawkers in the reserved coaches. (ix) Provision of armed escorts in the long distance trains passing through vulnerable areas. The Guard should lock the unmanned parcel van. . The doors of the coaches should be closed and the train staff should open one of the doors in the platform side to enable boarding/detraining of passengers at enroute stations. the vestibules should be closed during night. Commercial staff should ensure that the parcel vans/wagons are not overloaded.(iii) Provision of first aid boxes with Guard/Train Superintendent of the train. Lady constables may escort Ladies compartments. Role of train staff in ensuring safety of passengers and their belongings: 1) 2) 3) 4) 5) 6) 7) 8) 9) 10) Doors of the coaches should not be kept open when the train is on the run. To avoid theft of luggage. (x) Provision of mobile police stations in important trains. Defective doors of wagons/parcel vans should be immediately repaired. (vi) Prohibition of carriage of explosives and other inflammable articles in the compartments.

RPF and GRP should conduct regular drives. f) If any unidentified and unclaimed articles are noticed. b) The ticket checking staff should be vigil and should look for any unclaimed object in the compartments or in the platforms. co-operation from the passengers is needed. etc. jewel. d) The parcel office staff should be more careful while accepting the parcels and luggage. 7) Do not exhibit expensive articles. if any. 2) 1) . c) Ticket Collectors should check the entry of unauthorized persons and carriage of explosives and other inflammable articles in the railway premises. Do chain and lock your luggage with the wire ropes provided underneath the seats. 6) Beware of unauthorized hawkers. Regular co-ordination meetings should be conducted to chalk out the strategies to prevent the nuisance. Hence the passengers may be educated through the audio systems by making announcements as follows: Do not entrust your luggage to strangers. 4) Do not accept eatables from co-passengers. g) The SM should pass on such message to RPF/GRP/Local Police immediately. Announcements through audio systems to educate the public : To achieve more fruitful results from the efforts being taken by Railways in ensuring safety of passengers and their belongings.(iii) (iv) The vulnerable sections and trains should be identified and a joint team of Officers from Commercial. the staff on duty should immediately report to the SM. e) They should inspect the suspected packages for mis-declaration. 10) Be careful of your pocket while boarding/alighting from train. 3) Do not leave your luggage uncared during your absence. 11) Do not touch unclaimed property. Preventive measures against terrorist activities : a) Ticket checking staff should check the entry of unauthorized passengers in coaches. 8) Do not seek any information or any assistance from unknown or unauthorized persons. 9) Take care of your children during travel. 5) Do purchase all eatables by yourself. cash.

CCTV. But some miscreants misuse the alarm chain to stop the train. etc. The staff should make efforts to detect and apprehend the person who has interfered with the apparatus. 1989.12) Lady passengers to avoid sitting and standing by the side of open windows/doors.. Hence Railways are undertaking campaign against carriage of these materials in trains. GRP will initiate further action including legal action to book the culprit. The Guard should give a report in the prescribed proforma in duplicate with full details and hand over one copy to the SM who will pass the same to the GRP.  Any article of inflammable nature detected should be removed immediately and action taken against the defaulter. 2) 3) 4) STATUTORY OBLIGATIONS OF RAILWAYS TOWARDS PASSENGERS . the train staff including RPF/GRP on escorting duty should become alert and get down to locate the coach. To deal with unauthorized alarm chain pulling the Railways are taking the following steps: 1) As soon as the driver gives indication by whistling regarding unauthorized alarm chain pulling. guard and the driver of a train. 59 & 164 of Railways Act. Campaign against carriage of explosives and inflammable articles : Carriage of explosives and inflammable articles in passenger trains are strictly prohibited and punishable under Sec.  Ticket checking staff and RPF staff mush exercise sufficient care in checking the passengers’ luggage. Alarm chain pulling Alarm chain apparatus has been provided in the compartments as a means of communication between the passengers. 1989 unauthorized alarm chain pulling is punishable. which are easily accessible for chain snatching. 141 of Railways Act.  This propaganda should be carried out through public address system.  Posters are exhibited in prominent places in the station premises and in trains desisting the travelling public from carrying such articles. In case of any emergency a passenger can pull the alarm chain to stop the train. Under Sec. But passengers are likely to carry crackers as part of luggage during festival seasons.

English and Regional language :  Arrival and Departure timings of trains carrying passengers and stop at that station  Fare list from that station to other stations as considered necessary 2) A copy of the timetable in force shall be kept in SM’s office for passenger reference.Under the Railways Act. 1 49 2 50 3 4 5 6 7 8 9 10 11 51 52 53 54 55 56 57 58 59 Subject Exhibition of timings and fare tables at stations Supply of tickets on payment of fare Ticket is issued but the class/train not having accommodation for additional passengers Cancellation of ticket and refund Prohibition against transfer of certain tickets Exhibition and surrender of tickets and passes Prohibition against travelling without ticket or pass Power to refuse to carry persons suffering from infectious or contagious diseases Maximum number of passengers for each compartment Earmarking of compartment for ladies Communication between passengers and railway servant in charge of train SECTION 49 – Exhibition of timings and fare tables at stations : 1) The following are to be displayed in a conspicuous and accessible place at every station in Hindi. Section No. SECTION 50 – Supply of tickets on payment of fares : 1) Every person desirous of travelling on a railway shall be supplied with a ticket on payment of fare with the following details :    Date of issue Class of travel Stations between the ticket is issued . No. 1989 the following are the statutory obligations towards passengers: Sl.

The Central Government may exempt the details being specified in a particular language if it is not feasible due to mechanization. SECTION 51 – Ticket is issued but accommodation for additional passengers: 1) 2) the class/train not having A ticket is deemed to have been issued subject to the condition of availability of accommodation. 3) If the ticket is issued for a specified period. If no such accommodation available and the holder travels in a lower class. SECTION 54 – Exhibition and surrender of tickets and passes: 1) Every passenger should present his ticket/pass for examination on demand by an authorized railway servant during or at the end of the journey. 2) Also the working hours of the booking windows should be displayed. 2) An authorized Railway servant may permit change of name of a passenger on reserved tickets. 2) Also the ticket/pass should be surrendered at the end of the journey. Fare The above details should be in Hindi. it should be cancelled and the amount should be refunded as may be prescribed. it should be surrendered on the expiry of such period. . English and regional language in case of the lowest class and in Hindi and English in case of all other classes. SECTION 53 – Prohibition of transfer of certain tickets: 1) A ticket issued in the name of a person shall be used only by that person. SECTION 52 – Cancellation of ticket and refund: If a ticket is returned for cancellation. 3) Mutual transfer of a reserved seat/berth by passengers travelling by the same train is not prevented. he is entitled for refund of the difference in fares on returning the ticket.

4) SECTION 57 – Maximum number of passengers for each compartment : 1) 2) The Railway shall fix the maximum number of passengers. Without obtaining permission as above if any such person enters/remains in any carriage or travels in a train and accompanying person if any.SECTION 55 – Prohibition against travelling without ticket/pass: 1) 2) No person should enter or remain in any carriage for the purpose of travelling unless he has a proper ticket/pass or obtained permission of an authorized railway servant. SECTION 58 – Earmarking of compartment. which may be carried in each compartment. for ladies : Every railway should earmark one compartment or such number of seats/berths as the railway may think fit in every train carrying passengers for the exclusive use of females. English and one or more regional languages commonly in use in the areas served by the railway. The authorized railway servant giving such permission should arrange for separation of such person from other persons in the train. The permission should be in the form of a certificate that he has been permitted to travel on condition that he subsequently pays the fare. SECTION 56 – Power to refuse to carry persons suffering from infectious or contagious diseases : 1) 2) 3) Any person suffering from infectious/contagious diseases prescribed should not enter or remain in any carriage or travel in a train without the permission of an authorized railway servant. etc. The number should be conspicuously displayed inside/outside of each compartment in Hindi. subject to the approval of the Central Government. shall be liable to forfeiture of their ticket/pass. SECTION 59 – Communication between passengers and railway servant in charge of train : . Also any authorized railway servant may remove them from railway.

Failure of clean toilets 10. 2) When such means of communication in a train is being misused. it may be disconnected in that train for such period as the Railways think fit. They are the mirrors through which self-analysis can be done to improve the quality in service rendered. Non-availability of FIR forms with TTEs/Guards 3. Non-availability of coach indication slips & reservation charts in both sides of coaches 6.1) In every train carrying passengers such efficient means of communication between the passengers and the railway servant in charge of the train should be provided and maintained by the Railway. unauthorized vendors and beggars travelling in reserved compartments 8. Parcels not stacked properly in platforms 7. creating a feeling among the customers that we are an organization who cares for them. Non-availability/Bad condition of wheel chairs for use of invalids 4. 5.     Actual deficiency in service Imaginary deficiency due to high expectations Wrong information and No information Public complaints show what we are.T. Late display of reservation charts.Holders. 3) A Railway may be exempted from providing such means of communication in any train under any circumstances specified by the Central Government. Non-issue of LCC by TTEs in trains 2. S. i. Some of the regular complaints are. It is the first step taken to aim for what we should be! Taking action towards what we should be will move us from where we are to where we should be. ORGANISATION TO DEAL WITH PUBLIC COMPLAINTS & REMEDIES Customer grievances are the feedback on the quality of service. 1. Public complaints arise due to.e. Non-availability of water in coaches 9.. Non-functioning of lights and fans in the coaches .

Director (Public Grievances) as member. 13. 15. At Railway Baord: Member (Staff) as Chairman. CEE. They were angry at Railways’ failure in attending the above grievances. CPRO & Dy. SDGM. 14. the rail users consider the Railways as an inefficient organization. Zonal level and Railway Board’s level. At Divisional Level: ADRM as Chairman. DMO. . 12. CPTM. DME. How to handle public Complaints ?  An open mind approach to solve problems created by actual deficiency  Avoiding defensive approach in dealing with criticisms  Correcting wrong information by supplying authentic information  Ensuring supply of full information through various media  Educating the customers in availing our services  Continuous counseling of frontline staff through effective training  Creating a feeling that we really care for customers – through proactive service Organisational set up existing in Railways to receive and redress public complaints: A “Public Grievances cell” is functioning at Divisional level. Supply of dirty bedrolls in AC coaches. At Zonal Level: AGM as Director. CME. Director (P. DEE & DCM as members Complaints Inspectors are assisting the organization in settling the public complaints.G) as members. CCM. CE. Non-supply of face towel along with bedroll Insect menace in AC Coaches Defective window/shutters in coaches Inadequate cooling in AC coaches As the above problems are perpetual.11. Director (Efficiency Bureau) as Secretary.

In divisions. a JOB CARD is printed by the system JOB CARD should be handed over to the respective supervisor Feedback obtained from the Supervisor should be entered in the P.Complaint should be transmitted to the Divisional Office. Procedure : I.).R. 1.Computerisation of handling public complaints: Public Complaints are received through four basic units.O/P. 3. 1) Processing of Complaints by Stations: When the action to be taken by a local supervisor.R. II. viz.Feedback obtained from the Complaints Inspector should be transmitted to the complaint-registering unit. will be entered in the personal computer in the prescribed format..C. etc. . All these computers are connected through RAILNET. 2) When the complaint is to be enquired by the Complaints Inspector.SMR (Commercial). .S/ V. 2) One printed copy of the complaint should be kept in the office of Dy. 3) When the Complaint pertains to other Divisions/Zones : ..JOB CARD is printed in the Divisional Office handed over to the Complaints Inspector for conducting enquiry and fixing the responsibility. Stations Divisions Zonal Headquarters and Railway Board The personal computers are installed with separate telephones at ‘A’ class stations with Deputy Station Manager (Comml. 4. In zonal Railway. the personal computer should be installed to DCM’s office. 2.. Registration of Complaints: 1) All complaints received through different points like B.O/G. . the personal computer should be provided with CCM (PS) and in Railway board the personal computer is installed in TG – II section.

the complaint will be acknowledged on the spot. IV. SMR (Comml). - Complaints Inspector will enquire the complaint The complainant will be replied by the division. Monitoring onboard deficiencies : The deficiencies noted by TS/COR/TTE should be given to the Dy. This should be treated as an INTERNAL COMPLAINT and . The complaint is acknowledged through the Computer itself.- the complaint should be transmitted to the concerned division/zone through e-mail. The feedback should be sent to the Zonal Railway and Zonal Railway will reply to the complainant. Maintenance of Database: Necessary data and statistics will be maintained by each unit under the following heads: 1) 2) 3) 4) 5) Complaints registered. Original record is kept at the forwarding station. Division should redirect the same to the concerned station. When the complaint is received by the Division: III. When the complaint is received by the Zonal Railway: Zonal railway forwards the complaint to the concerned division. or within 24 hours after receipt of the complaint. Complaints transmitted to other locations Complaints received from other locations Feedback on complaints Action taken The data should be kept on floppies on daily/weekly/monthly basis. within 7 days. All replies/feedbacks should be given within 3 days and in case enquiry involved. Time limit for acknowledgement: When the complaint is received at the Station.

What is “Customer Care”? It means that a customer should get a feeling that he is being taken care apart from normal service for which he paid the charges.should be processed exactly in the same manner as EXTERNAL COMPLAINTS. It does not mean mere transport of passenger or goods from one place to another in Railways. CITIZENS CHARTER ON PASSENGER SERVICES OF INDIAN RAILWAYS ** ** ** ** ** Provide safe and dependable train services. Hence Indian Railways can also achieve their corporate objectives of ‘Improving Quality and Reliability in Service”. but also involve an extra care and concern. they became one of the world’s most profitable organization. The importance of ‘Customer Care’ in Railways : . due to 7 year long campaign from 1983 to 1989. by putting the Customer first. at various levels for time bound resolution of complaints and grievances as far as possible. CUSTOMER CARE & It’s IMPORTANCE “Customer Care” & “Customer Service” are the subjects being given a lot of importance in the present competitive market in all customer related services. called “putting the customer first”. Conclusion: When British Airlines was incurring heavy losses and got a poor service. Similarly the Railways are also equally concerned since the “Customer Care” is a very important tool in enhancing the image of the organization and thus the market share. Set notified standards for various services wherever possible Ensure adequate passengers amenities in trains and at Railway Stations Provide courteous and efficient counter services Set up a responsive and effective grievance redressal machinery. Separate data & statistics should be maintained about INTERNAL COMPLAINTS.

Hence we are bound to . Thus the citizen’s charter has given a commitment to the customers to set notified standards for various services and provided courteous and efficient service. A large number of cases are filled in consumer redressal forums against Railway services. To face this competition the Railways should build up a good image apart from providing safe & satisfied transport to the customer. there is an urgent need to improve the awareness of staff about our accountability towards the customers.  To face competition and to build up a good image: Building up a good image of the organization lies in the 100% loyalty of frontline staff who are directly dealing the customers. Any deficiency noticed by the forum leads to award of compensation to the customers. ** Set notified standards for various services wherever possible ** Ensure adequate passenger amenities in trains and at Railways Stations ** Provide courteous and efficient counter services ** Set up a responsive and effective grievance redressal machinery. By improving the customer care.The preamble of the citizen’s Charter on passenger services of Indian Railways emphasis the importance of customer care as follows : ** Provide safe and dependable train services. at various levels for time bound resolution of complaints and grievances as far as possible.  To minimize the deficiencies in service: As the customer awareness is increasing. the Railways can retain the existing traffic to survive in the market. The competition from the other modes of transport in the field of revenue earning traffic is a major threat for Railways. Southern Railway coined a motto “We Care” to show their concern to the user public. One of the major reasons for the same is anti-customer approach and poor customer care. Every staff has to do his best to build up a good image among the rail users. Why customer care is necessary?  To retain ourselves in the market: The market share of the Railways has been declined alarmingly due to various reasons.

e. Staff should never lose temper – staff should be trained to control their emotions as they are facing hundreds and thousands of human beings in their transaction.take steps to minimize the deficiencies in our service. Proper counselling of staff wherever necessary Improsing severe penalties on staff with improper behaviour Educating the rail users to avail our services effectively 10) “Put yourself into the shoes of your customer’ – Every frontline staff should know the problems faced by customer. but not an employee of a service organization – Remember the perishable nature of our product. Present training programs and communication systems may be revamped to support the new emphasis on customer care. How to improve customer care in Railways? For our own survival in the market. Individual customer is important to the organization – One satisfied customer may not bring another customer. but one aggrieved customer may spoil 100 potential customers. To study the opinion of the customers. i. internal audit and quality improvement programmes may be conducted at regular intervals. customer care has to be given its due importance. It cannot be saved like other products for future sales. The following suggestions are made to improve the customer care in Railways. A strategy to improve customer care should be evolved considering the following aspects:     6) 7) 8) 9) Proper recognition to the staff rendering outstanding service. Everyone in the organization should continuously strive to achieve the goal. . A customer may be bad. Due importance given to ‘Customer Care’ will certainly minimize the number of deficiencies. transportation.. customer surveys. 1) 2) 3) 4) 5) Improvement of customer care requires a substantial commitment at various levels. Staff should be trained to be pro-active in their services. so that he can understand the feelings of a customer. Staff should be positive in their approach – staff should find out all possible means to accommodate the needs of a customer within the framework of rules.

damage or vandalism. Maintaining proper queues wherever necessary.Role of Customers in improving the service: In improving the quality of service. but not liquidated his liability either by remittance of cash/voucher or by taking special credits under the rules up to the closing of the month are called “Outstanding”. Dealing courteously with fellow passengers and railway staff. 4. 9. 7. the user public can also play a vital role by their co-operation to the Railways as follows: 1. 6. 10. Abstaining from smoking and drinking where there is prohibited as a courtesy to fellow passengers. Boarding reserved coaches only when a seat/berth is allotted in his favour. Travelling light and booking heavy luggage in the brake van. touts and unscrupulous elements by purchasing tickets from them. These outstanding are generally related to: i) Disallowance by the Chief Cashier. 5. 3. Not encouraging unauthorized persons. 2. Kinds of outstandings: The outstanding is shown as ‘Closing Balance’ in the credit side of the balance sheet. Using the alarm chain only for sufficient reason. ACCOUNTS FOR COMMERCIAL/TRAFFICE APPRENTICE (STAGE – III) STATION OUTSTANDINGS Definition: Those amounts for which the SM has became accountable. ii) Admitted Debits iii) Disputed Debits iv) Freight outstanding on a) ‘To-Pay’ consignment on hand awaiting delivery . Refraining from carrying contraband. 8. Observing clean and hygienic behaviour by proper use of facilities. Protecting railway property from any misuse. inflammable and dangerous goods in trains.

If the admitted debits are allowed to remain outstanding for more than 3 months the staff responsible and the supervisor will be taken under DAR. which should be recorded in the error advice. short remittance. If it is not recovered and remitted during the month. The error sheet may be either “Admitted” or “Disputed” by the station. the same will be debited by means of an ‘Error Advice’. the same should be taken into outstanding. Various returns submitted by the stations are checked in the Traffic Accounts office or by the Travelling Inspector of Accounts during his inspection at Stations.150/-. If the debits remain uncleared at the close of the month. In case the Chief Cashier finds any forged currency notes. 4. If any short collection or short accountal is detected. the SM should recover and remit the shortage from the staff responsible. Admitted debits should be cleared then and there. etc. Admitted debits upto Rs. 1. CLEARANCE OF STATION OUTSTANDING i) Disallowance by Chief Cashier : The cash remitted by the stations are checked in the Cash office. Note as received by him and specify the particulars of forged currency. The debit should be disputed only under proper grounds. Tariffs. 150/. they should be taken as outstanding. The error advice received at the station will be accounted in the debit side of the balance sheet of the month in hand. On receipt of ‘Receipt’ foil of the CR Note is received at station.R. 2. He will acknowledge the amount in the C. vi) Unsold publications like Timetables.should be remitted in cash. etc. 3. short remittance. If the admitted debits due from the same employee exceeds Rs. In case of admitted debits the SM should fix the staff responsible. etc. ii) Clearance of outstanding under “Admitted Debits”. . it has to be cleared in reasonable installments.b) ‘To-Pay’ consignments not on hand but accounted as force entry as per MPA c) ‘To-Pay’ consignments requiring clearance by over charge sheet due to the consignment having been diverted to other stations v) Wharfage/Demurrage charges foregone for which remission order is awaited.

DCM will advise DPO regarding the number of installments and the amount of recovery to be made every month.150/-.. Amount to be recovered. etc. In respect of staff removed from service.. Designation. EA No. Disposal of statement of recoveries: First Copy Second Copy Third Copy Forth Copy Fifth copy Bills preparing authority (DPO) Accounting authority (DAO) Traffic Accounts office (TPJ/MAS) DCM Office Station Record On receipt of recovery advice from stations.150/. Recovery of admitted debits through pay bills: If the admitted debits of Rs.150/.and below including cashier disallowance if any are not made good by cash... DAOs of the divisions and CCM/MAS. Name of the staff responsible. bonus. Role of Divisional Accounts Office : A record of total debits due from the staff concerned should be recorded in a Recovery register duly indicating the monthly progress of recovery. the recovery may be made from the unpaid salaries. long absentees.and below as indicated in the above list are remitted in cash. the SM will prepare a statement of recoveries with the following details in quintuplicate. “47 – Commercial debits”. and amount. Designation. PF No. PF No. etc. Commercial Supervisors/Inspectors should ensure that the debits of Rs.150/. EA reference. The list will have the details of Staff responsible for the admitted debit.. The list will be sent to DCMs. DPO will prepare and send change card to the EDP centre mentioning the debit code allotted viz.Procedure to clear the outstanding through salary recovery: The traffic Accounts office (SAO/T/TPJ for Coaching and SAO/T/MAS for Goods) will prepare each month the outstanding list under the head “Admitted Debits” in 4 copies station-wise for each division separately for items of Rs. Amount. etc. The DAO office after internal check of the salary bill will prepare the recovery statement in quintuplicate and send a copy to the Traffic Accounts office with transfer certificate and three copies to .and above and items less than Rs. Based on this advice.

The SM will clear the outstanding by taking special credit in his balance sheet enclosing one copy along with balance sheet in support of the credit. iv) Clearance of Freight Outstanding: 1) The ‘Freight Not on hand’ outstanding may be due to forced MPA entries or diversion of the consignment to other stations. the debit should be taken under admitted debits and cleared in the same way as for admitted debits. Retaining one copy the DCM office send two copies to the station. The SM will take special credit enclosing one copy of the letter of authority with the balance sheet. 2) The outstanding on account of forced MPA entries will be cleared on receipt and delivery of the consignment duly collecting the charges. The SM who transfers the debit will take special credit after receipt of original copy of acknowledged transfer memo. Transfer of debits to other stations : To ensure expeditious clearance of admitted debits against the staff transferred to station on other division/railway. the SM should transfer the debit to the station where the employee is presently headquartered.DCM office. Such transfer of debit is done on the memo called “inter-station transfer Memo”. The SM should also maintain a recovery register showing the monthly progress. iii) Clearance of Outstanding under ‘Disputed Debits’: The outstanding under disputed debits will be cleared on receipt and accountal of credit advice from the traffic Accounts office withdrawing the incorrect debits. the DCM will send a letter of authority duly countersigned by DAO giving full details of recovery. On recovery of the amount from settlement dues. Recovery of debits from staff leaving/retiring from service: Any outstanding under the admitted debits against the staff retiring from service or leaving the service should be recovered from the settlement dues of staff concerned. If the objection of the station is overruled. . The station where the outstanding is so transferred will take necessary steps for clearance of the same.

3) The outstanding due to MPA entries if found wrongly forced, special credit should be taken enclosing a certified true copy of the invoice issued by the booking station. 4) The outstanding on the diverted consignments will be cleared by issuing certified overcharge sheet by the station against which the debit lies after diversion. 5) In case of loss of consignment the overcharge sheet will be certified by the claims branch on the authority of which the outstanding will be cleared. 6) The freight outstanding against the unconnected/undelivered consignment will be cleared by utilizing the ‘Sale Proceeds’ received through disposal of the same through public auction. v) Clearance of outstanding on Wharfage/Demurrage charges forgone: Wharfage/Demurrage charges foregone if any, will be cleared on receipt of remission orders issued by DCM. One copy of remission order should be enclosed with the balance sheet and special credit is taken. vi) Clearance of outstanding on saleable publications : On completion of sales, the outstanding will be cleared. If obsolete timetables are returned to Head Quarters, the outstanding will be cleared by taking special credit. In such cases, the acknowledgement received for the same will be enclosed with the balance sheet. Outstanding List : The outstanding list should be prepared category-wise in quintuplicate as follows: One copy Two copies Two copies Station record FA & CAO/TPJ or MAS along with balance sheet. Sr.DCM/CCM put together in one cover addressed to DCM his

1. Admitted Debits (Name of the staff responsible with Designation, Staff No. & PF No. should also be furnished) 2. Disputed Debits (Full reason for objection should be furnished) 3. Freight Not on hand 4. Freight on hand 5. Freight Current

6. Wharfage & Demurrage charges foregone 7. Miscellaneous A summary must be prepared as given below for every month: Sl.No . 1 2 3 4 5 6 7 Category Admitted Debits Disputed Debits Freight Not on Hand Freight on hand Freight current Wharfage & Demurrage Miscellaneous Grand Total Old Current Total

CLEARANCE OF DEBITS ON ACCOUNT OF LOSS OF EFT, ICV BOOKS (Ref.:C.38/11 dt.11/9/90) EFT books, Money value Coupons and other cash value books should be kept under safe custody and the staff should be very careful in dealing with those books. In case of loss of EFT books, money value coupons and other cash value books, necessary debits will be raised by Traffic Accounts office as per the procedures laid down. DCMs may recommend the specific and deserving cases for waival of debits with the following documents. 1) Report of the staff who has lost the cash value book 2) Copy of the Police complaint 3) Copy of the ELICOD message 4) Date of publication in the Southern Railway Gazette about the loss 5) Result of the Police investigation 6) Punishment imposed on the staff for the lapse 7) Certificate of FA & CAO/TPJ stating that the EFT foils have not come into collection. 8) Specific recommendations of DRM

Immediate action should be taken on reports of loss of cash value books, etc. The delay in processing the cases should be avoided. CLEARANCE OF OUTSTANDINGS OF CLOSED STATIONS (Ref.: C.419/OS/Closed Station dt.19/05/1999) Stations are closed for the following description of traffic for the reason mentioned against each item: a) Stations are closed for Parcel traffic for poor traffic offering. Due to rationalization of parcel traffic small stations open for parcel traffic adjoining the major junctions are closed for parcel traffic.

As per the recommendations of the DRM with the approval of CCM, stations are closed for Parcel Traffic. This will be notified to all concerned by issuing draft notification. However at these stations passengers’ tickets are continued to be issued. Hence the station should send the balance sheet including the parcel items till such time the parcel outstanding is cleared. b) Stations are closed for goods traffic for poor patronage. Also stations are temporarily closed due to gauge conversion.

Stations are closed for goods traffic as per the recommendations of DRM with the approval of CCM. This will be notified to all concerned by issuing draft notification. The outstanding pertaining to those closed stations should be transferred to the nearest major goods shed and a separate balance sheet should be sent till such time the outstanding is cleared. If stations are closed for traffic temporarily due to gauge conversion, the skeleton staff available at the station should submit the balance sheet and connected returns till the time or reopening of the station for traffic. c) Private sidings are closed for goods traffic when the siding owner intends to stop booking freight traffic by rail.

Siding is closed for traffic only after ensuring the clearance of traffic outstanding, as per the recommendations of DRM with the approval of CCM. This will be notified to all concerned by issuing draft notification.

Even if some items are left over these items should be transferred to the serving stations and a separate balance sheet is sent with regard to the siding till such time the outstanding is cleared. d) The contract for Out-Agency is terminated, if there are irregularities in running the out-standing. In some cases, the contractors maylike to run the business with regard to passenger traffic. In such cases also the contract is partially cancelled for parcel and goods traffic only. Some departmentally running out-agencies are closed for parcel and goods traffic due to poor traffic offering.

Out-agency is closed for traffic only after ensuring the clearance of traffic outstanding either through the contractor bill or by encashing the security deposit. Draft notification is issued for closure of out-agency as per the recommendations of DRM with approval of CCM. If the outstanding is not cleared these items should be transferred to the serving Railhead and a separate balance sheet should be sent on account of closed out-agency. If the departmentally run out agency is closed for traffic, outstanding should be transferred to serving railhead and a separate balance sheet should be sent on account of closed out agency. MEASURES TO PREVENT ACCUMULATION OF OUTSTANDING All-out efforts should be taken to ensure expeditious clearance of outstanding. It is of utmost importance that the outstanding at the stations are reduced to the barest minimum. The supervisory staff and inspecting officials should periodically scrutinize the outstanding of the stations. The following actions are suggested to prevent the accumulation of outstanding. 1. 2. Error Advices received and the Cashier’s disallowance if any should be accounted in the first balance sheet on hand and immediate steps to be taken to clear the same. The Balance Advice should be checked to see whether all the EAs mentioned therein have been accounted for. If copies of EAs are not received as per the balance advice, they should be called for and accounted. Admitted debits should be cleared by the staff responsible immediately. Any delay in acknowledging the transfer memo in case of admitted debits on staff transferred to other stations should be immediately reported to DCM.

3. 4.

5. 6. 7. 8. 9. 10. 11. 12. 13.

In case of disputed debits, the matter should be pursued with DCM and the Traffic Accounts Office to get the credit advice. If the grounds for disputed debits are over ruled by the Traffic Accounts Office, the same should be transferred to admitted debits and cleared immediately. Instructions regarding freight outstanding should be strictly observed. Special efforts should be taken to obtain certified overcharge sheet or certified copy of invoice wherever necessary to clear the freight outstanding. All inward invoices should be checked and undercharges, if any should be taken into account immediately. While accounting the invoice, the inward invoice index register and the delivery books should be checked to ensure that it has not been accounted earlier. Siding charges should be promptly collected. In case of delay in payment the matter should be brought to the notice of DCM to prevent recurrence. All the charges due should be promptly collected before delivery of the consignment is effected. All the tariffs, manuals, codes, etc., must be kept updated. The rate circulars must be studied carefully and the staff must act upon the changes as advised.

Normally railway freight charges on goods and parcel traffic are collected in cash only. Under special circumstances payment of charges by Cheques, Drafts, Credit Notes, Weight only system for notified commodities under goods traffic, Monthly account system for Registered Newspapers and Magazines are also permitted. In case of passenger traffic, payment of fare through Bank Credit cards for reserved tickets, Rail Travel Coupons, Rail Travellers cheques, coupon Validating Machines, etc., are introduced. Zonal Railways are empowered to authorize SMs to accept Bank Drafts/pay Orders for payment of Railway dues exceeding Rs.1000/- in each case. Problems in the existing system of collecting railway dues in cash: The Commercial staff has to ensure correct collection, accountal and remittance of railway dues for the traffic dealt at stations. When the volume of traffic is heavy it becomes an ordeal job for the staff to collect the dues in cash and keeping the same under safe custody till its remittance to the cash office/bank as the case may be. It requires

2. As the telephones department is corporatised in the name of BSNL and BSNL has not entered into any agreement with Railways. . 6. (I) Payment of freight by Credit Note-cum-Cheques by the Central or State Government departments: 1. if any  Difficulties in the process of remitting the station earnings to cash office or nationalized banks as the case may be  Delays in remitting the cash due to non-availability of Travelling Cash Chest and non-availability of cash bags. A separate form is prescribed for the use of P & T department. Railways also have to think of alternate methods to realise their dues from the user public. still it involves handling of cash. 4. Accordingly in payment of fare and freight. modes other than cash payment also approved by Railways. the following aspects to be taken into consideration:  The recent cases of robberies from the stations  Tedious process involved in making over/taking over of cash among station staff.adequate manpower at stations as well as in the cash office including security personnel. Since the modern world prefers to avoid carrying hot currencies to eliminate all the related problems. designations and specimen signatures of officers authorized in triplicate to issue credit notes and the names of stations where the facility is required. The department should submit the names. Though stations are permitted to remit their station collections in the nearby nationalized banks. wastage of manpower.  Possibilities of temporary misappropriation. The Railway will notify the same to the stations concerned and the cash office. The credit note-cum-cheque should be in the prescribed form. recurring expenditure on conveyance to/from the banks. The Zonal Railway may grant the credit note-cum-cheque facility on application from the department concerned. no credit note should be accepted from BSNL towards payment of charges. 3. While insisting on payment of railway dues only in cash.  Delays made to cash carrying trains affecting their punctuality  Tendering of forged currencies. Central/State government departments are permitted to use credit note-cum-cheque facility to pay the freight charges. 5. etc.

Under charges if any noticed during internal check should be paid by the department and over charges if any should also be claimed as per existing rules. e. The cheque should be sent to cash office on the following day of transaction duly entering in the Cash Remittance Note. Commission charges if any incurred by the Railways for realizing the amount of cheques shall be paid by concerned departments as per the agreement. d.7. alterations and use of abbreviations are permitted. c. Separate cheque should be issued for each transaction. The details should be written in clear and legible handwriting. Procedure to accept credit note-cum-Cheques at stations: a. f. g. 10. it should be endorsed as “Subject to realization of Cheque”. 8. 13. the traffic may be accepted as “To-pay”. No erasures. If a cheque is dishonoured due to any reason. The cheque should be endorsed as “Account Payee only – Not negotiable”. (III) Payment of freight by Credit notes by private firms: . 14. A register of cheques should be maintained with the following columns:  Date of receipt of cheque at Station  Number and Date of cheque  Name and Designation of drawer  Bank on which drawn  Amount  Details of relevant Invoice/PWB (II) Payment of freight charges by Defence: Freight charges for military traffic may be prepaid by Military Credit Notes (IAFT 1711). non-availability of MCNs. a fresh cheque may be issued by the concerned department. In exceptional cases like. 9. 12. 11. Money Receipt if any issued. The cheque should be drawn in favour of Chief Cashier on RBI/SBI as the case may be. b. The cheque has to be verified whether is has been issued by an authorized office and the signature is tallied with the specimen signature supplied by Railways. The departments allowed the facility of payment by cheques should not be allowed the facility of payment by credit notes. The cheque should be stamped with the stamp of the issuing office.

1) 2) 3) 4)

The facility of payment of freight by credit note granted only at the discretion of the Railways. It is confined to well-known private firms of good standing, having regular and adequate monthly transactions with Railways. The firm should pay a security deposit equal to 30 days transactions based on the average of previous 12 months. Payment by credit notes can be authorized by CCM on application from the firm.

(IV) Payment of freight by “Weight only” system : 1. Under this system, major customers are permitted to settle railway dues on the basis of monthly billing. 2. The chargeable weight of the consignment and the rate per quintal only will be shown in the Railway Receipt. 3. The freight charges will be worked out in the traffic accounts office. 4. Railways will submit periodical bills (5 days) and the firms will settle them. 5. If the freight dues are not paid within 10 days of claim, the facility will be withdrawn. 6. On application from the firm, CCM may authorize the firm in consultation with FA & CAO. 7. The Sr.DCM should certify that the firm is not a habitual defaulter of payment of railway dues. Further there should be no outstanding freight and siding charges against the party. 8. While introducing the system, a detailed procedure is evolved for booking and accounting of traffic and supplied to the stations concerned. 9. A security deposit of one month’s transaction is collected on the peak month’s figure during previous 12 months. In case of cash deposit, the amount of 20 days transaction can be accepted 10. The security deposit may be accepted in the form of cash, Govt. Securities at 5% below the value, Deposits in National Savings Certificate or Post Office savings bank, Bonds issued by Indian Railway Finance Corporation duly transferred in favour of Railways, etc. 11. If security deposit is paid in cash, the traffic will be treated as ‘Paid traffic”. Otherwise treating the traffic as “To-pay traffic” surcharge will also be levied in addition to the freight. 12. The system is allowed for Coal, POL Traffic, Iron ore, Manganese ore, Gypsum, Limestone, Cement, etc. (V) Payment of freight by Bank Drafts:

1. The payment of freight and other railway dues for goods and parcel traffic by bank drafts may be granted at the discretion of the Railways. 2. The draft should be drawn from a nationalized bank in favour of FA & CAO. 3. The draft should bear an endorsement ‘Account Payee only – Not negotiable’. 4. The charges if any for realizing the amount of draft as notified by Railways should be included in the amount of draft. 5. If a Draft is dishonoured it should be returned to the SM who will arrange to get fresh draft from the party. 6. If the amount of draft falls short of railway dues, balance amount may be accepted in cash. (VI) Payment of freight by Cheque: 1. The facility of payment of freight by cheque is permitted in favour of well-established and reputed companies. 2. In case of ‘To-Pay’ traffic payment of freight by cheque may be extended after taking all relevant facts into consideration. 3. If a cheque is issued by a firm is dishonoured, the facility may be immediately withdrawn and necessary action should be taken to recover the outstanding dues from the party. 4. In addition to freight, demurrage and wharfage may also be paid through cheques. (VII) Booking of Newspapers & Magazines under Monthly Ledger Accountcum-Bill system: 1. Newspaper firms having regular traffic may be granted the facility of paying the freight charges through monthly bills on the weight carried to different stations. 2. The firms should apply to CCM to avail this facility. 3. A sum equivalent to two months average freight transaction will be collected as Security deposit. 4. The security deposit may be collected in the form of cash, Govt. Securities at 5% below the value, deposit in National Savings Certificates or Post Office Savings Bank account or a bank guarantee. 5. Under this system, no Parcel Way Bill is issued, but distribution list will be prepared separately for each train. 6. The firm will submit distribution list in 4 copies for each train atleast 4 hours before the departure of the train.

7. The distribution list will contain the details of no. of packages, weight, destination, etc. Separate coloumn is provided to indicate the freight charges by the station staff. 8. One copy will be returned to the firm duly acknowledged the receipt of the paper parcels. 9. On remaining three copies, freight will be shown – One is kept as record, One is sent to the Traffic Accounts Office and the third is returned to the firm. 10. Test checking of weighments will be done by railways in the firms for one week in each quarter commencing Jan., Apr., Jul & Oct. of every year. 11. Weighment will be done in two schedules – One from Monday to Saturday and other for Sunday edition. 12. The average weight arrived at during test week will form the basis for preparation of bills for the 3 months quarter concerned. 13. Test weighment statements are prepared in 4 copies and signed by both railway official deputed for the purpose and the firm representative. 14. Two copies are handed over to SM, who will send one copy to accounts office along with Newspaper parcel statement prepared for the first month of the quarter period. 15. The ledger account-cum-bill shall be prepared and sent to the firm for payment not later than 3rd of the following month. 16. The firm will return one copy duly countersigned showing the date of payment. 17. If no payment has been made the amount will remain as outstanding. Credit note-cum-Cheque facility – Procedure for drawal of cheque Ref. No.C.283/FCN/P/Vol.VI dt. 17/11/98) The revised instructions regarding the Cheques being drawn and made payable at the bank with which the Railways are having direct deposit account are as follows : In case of the cheque receiving station having a direct deposit account with a local bank In case of the cheque receiving station does not have the direct deposit account with a local bank and therefore the cheque is sent to the Divisional cash Office/Area cash office Cheque shall be drawn on any local scheduled bank Cheque shall be drawn on any scheduled bank located at the same town where the Divisional cash office or Area Cash Office exists

In case of transactions when rail users Cheque shall be drawn on any are required to make payment at Railway scheduled bank located at the Headquarters same city where the Chief Cashier’s Office exists In all the tree cases, the parties should be persuaded to draw cheques, as far as possible on the same bank where the railway account exists. WITHDRAWALS FROM STATION EARNINGS (Ref.: No.P (B) 483/P/Vol.IV dt. 22/03/90) SMs are required to remit the entire station earnings to the cash office on the following day without fail. No cash should be retained at station on any account without prior permission from the CCM. Anyhow, withdrawal of station earnings for departmental expenditure is permitted as per the provisions of Commercial Manual Vol. – II, which authorizes utilization of earnings for 41 items. Procedure to withdraw station earnings: 1) The nominated supervisor in charge of the Department concerned may be permitted to withdraw from station earnings in case of emergencies and for the permitted items of expenditure only. 2) The requisition should be made in triplicate indicating the official making the withdrawal, the Departmental officer concerned and the purpose of withdrawal. 3) One copy is kept as record, another copy is presented to the SM for arranging payment and the third copy should be sent to DAO duly countersigned by the Divisional Officer of the department. 4) The payment should be made only against proper acknowledgement. 5) After the payment the paid voucher will be sent to cash office along with C.R. Note. 6) Before effecting payment the SM should ensure that the withdrawal is for authorized item only. 7) Wherever necessary, prior permission should be obtained from Sr.DCM or ADRM or DRM through Commercial Controller. 8) It shall be the personal responsibility of the custodian of cash at stations to ensure that no payments are made without prior permission. 9) Any irregular withdrawal will be viewed very seriously and debited by Traffic Accounts department. Also the amount will be recovered from the salary of the person responsible for irregular payment or necessary DAR action may be initiated.

10) A register should be maintained at stations giving purpose of withdrawals as well as the authority. 11) Regularisation of irregular withdrawal: a) Any irregular withdrawal can be regularized only by postfacto sanction from Railway Board. b) Apart from raising debit, the accounts office will advise the Departmental Officer to explain the circumstances of withdrawal. c) Also a self-contained proposal will be sent to Sr. DCM to process the case further with Railway Board through CCM. d) CCM shall make out a proposal to obtain finance concurrence for onward transmission to the Railway Board. e) The circumstances for making irregular withdrawal and action taken against staff at fault should be indicated in the proposal. f) The proposal should be sent by CCM within a period of 3 months from the date of transaction. Permission items of station withdrawals for which prior permission from Sr.DCM need not be obtained. 1. Refund of fare on unused/partially used tickets. 2. Refund of wagon demand registration fee. 3. Refund of deposit collected towards value of perishable consignments delivered without RR and booking particulars, subsequently on production of RR or booking particulars. 4. Refund of QTS charge in respect of ‘Paid’ consignment to the consignor at the forwarding station on receipt of pay order in favour of consignor from SM of the destination station. 5. Refund of freight collected on ‘Paid’ consignment delivered on Indemnity note in the absence of RR duly collecting freight charges, subsequently on production of ‘Paid’ RR. 6. Refund of earnest money to unsuccessful bidders in case of auction of unclaimed or lost property. 7. Encashment of TIAs salary cheques. 8. Encashment of cheques issued by FA & CAO in favour of Chief Cashier. 9. Encashment of pay orders issued for claim for compensation in case of goods lost, damaged, etc., not exceeding Rs.2000/- in each case. 10. Encashment of traffic refund orders issued by competent authorities for refund of fares and freights. 11. Encashment of pay orders issued by Railway men’s co-operative credit societies. 12. Payment of commission to halt agents.

Payment of immediate relief to the families of non-gazatted Railway servants who die in service (Rs. etc. Advance to running staff marooned due to breach of communication. meat.8.13.A. Refund of security deposit on account of hiring of lockers at Railway station. etc. settlement of dues of staff where services are terminated by the Administration. butter. eggs.g. 10) Payment of fees to surveyors engaged in assessment of value of damaged consignments up to a limit of Rs. 2) 3) 4) 5) 6) 7) 8) .2000/. milk. Public : 9) Spot payment of daily allowance to public witness attending departmental enquiries in vigilance cases against railway employees.250/. fish. DCM must be obtained : Staff : 1) Payments to comply with Payment of wages Act where pre-check and payment by accounts office is not possible for want of time. Advance of TA in an emergency such as court attendance at short notice.000/-) Payment of advance of pay to the T. Defraying expenses in departmental catering establishments for the purchase of perishables.w.f. 11) Payment of reward to persons who help in apprehending prosecuting of unauthorized alarm chain each case. Advance from PF sanctioned by the competent authority to meet the funeral expenses of deceased Railway employee at the roadside station. Those who resign or otherwise leave the service on their own accord should not be paid from station earnings). Payment of conveyance charges for remittance of station earnings in local banks. 14.01/05/97 – Subsequently revised to Rs. 15. melted ghee. Payment to staff governed by workmen’s compensation Act. Payment of wages of staff who cannot be paid within 10 days of the expiry of the wage period. persons only when Railway units are embodies for emergency military duty and not on other occasions like annual camp.e. (e. Permissible items of station withdrawals for which prior permission from Sr.

Commission : 23) basis. 94/Safety – 1 / 12 dt. etc. Handling : 20) Payment of handling charges at stations where the SMs are Goods handling contractors. Charges for engaging a video camera operator at very short notice at the accident spot can be drawn along with money drawn for meeting other contingency EXPENDITURE AT THE ACCIDENT SITE. No Separate withdrawal is permitted. 20/7/99) Cost of transport of sick and wounded persons to hospitals when at small stations ambulance are not available. 21) Payment to casual labour engaged by SMs when handling contractors fail to provide adequate labour only in emergency case. When such labour is engaged temporarily when a handling contract has been terminated on account of unsatisfactory working of the contractor. the labour shuld normally be paid through master sheets and if they are to be discharged before the close of the wage period and payment through master sheets is not possible the payment can be made through station earnings.. accidents. at rates fixed by Railways. etc. Payment of grants sanctioned from Railway Minister’s relief fund through pay orders. U/C.Accidents : 12) 13) Departmental expenditure necessitated by floods. Payment to licensed porters if engaged for carrying injured persons. 620/P/Vol. Payment of commission to vendors/bearers engaged on commission 14) 15) 16) 17) 18) 19) . Ex-gratia payments to persons involved in train accidents. earthquakes. (RB No.. dead bodies. 22) Payment of coolie hire charges for effecting delivery of public telegrams whenever so indicated. hot axles. 20/7/94 circulated vide DCM/MDU No. Payment for shrouds to cover dead bodies of victims of accidents on Railways not exceeding Rs. – II dt. etc. Payment of handling charges for transshipment due to accidents. The voucher should be countersigned by GRP in token of having taken over the dead bodies covered.200/.in each case. which should be subsequently approved by the head of department.

accounted and remitted by the station staff everything goes well. ‘Fraud’ means leakage of railway revenue caused through evasion and abuse of rules. FRAUDS AND EMBEZZLEMENTS The Indian Railways are a commercial undertaking as well as a public sector enterprise. the far and freight are to be collected. 26) Payment of cost for obtaining copies of judgments from the court under the orders of the Head of the Department only in case where an appeal has to be filed within a specified period..Refreshment Rooms : 24) Payment of expenses of special catering (supply of free meals to the stranded passengers in case of an accident) when the imprest exhausted in emergency cases duly authorized by an officer.5/. But there may be. accountal and remittance of railway revenues various checks are indicated as follows: . The method adopted for the leakage of railway revenue is otherwise known as “Fraud”. As long as the charges are correctly collected.e. 27) Refund : Refund of deposit mone of Rs. and actually there are cases where the leakage of railway revenue takes place through evasion. And ‘Embezzlement’ means utilization of Government money for private purposes. accounted and remitted in accordance with the rules and rates laid down for the purpose. To avoid the possibility of frauds and malpractices and to ensure correct realization. In other words. Court : 25) Payment of decreetal and settlement amount in court cases when the parties insist on immediate payment under treat of execution of incharge or legal attachment in railway earnings at the station. The sale of commodity “Transport” is being done at stations and worked by various categories of staff. The charges. i.only to the licensed porters. misappropriation and misuse of rules on the part of station staff with or without the connivance of the public. The leakage of revenue can be totally eliminated only if the staff connected with various transactions perform their duties honestly in accordance with the true spirit and letter of the rules and regulations prescribed from time to time.

periodically or monthly. are committed in collusion with some other staff. Public also commits frauds with/without connivance of staff (e. the fraud can be unearthed by counting the tickets in stock and the tubes. the irregularity can be detected by checking the numbers of the tickets and comparing the sale proceeds with their accountal in the DTCB and checking the remittance of cash with the CR notes. In the Traffic Accounts Office. Any instances of frauds noticed are normally forwarded to Vigilance Branch/CBI according to gravity of the case for detailed investigation. Also this can be proved by taking particulars of certain numbers of collected tickets at the destination from the TCR entries and tracing their accountal of DTCB at the booking station. either from the tube or from the stock. etc. Frauds. it will come to light when the comparison of the collected tickets is made . The frauds and malpractices can be classified generally as follows: a) those which can be detected by scrutiny of various documents and records maintained at stations b) those which can be detected by surprise inspections at stations In general. Tickets are issued out of order and misappropriated till their turn of accountal. which can be detected by surprise inspections. If issued out of order. if the tickets have been issued out of order.) FRAUDS IN PASSENGER TRAFFIC (MANUAL): 1) 2) Tickets are issued but not accounted for.: Delivery on forged RR. Checking of number of tickets quoted in the Luggage Tickets in support of free allowance granted with the accountal of DTCB also reveal this fraud. which can be detected by scrutiny of documents.(i) (ii) (iii) Check in the Accounts Office over the vouchers. statements and returns submitted by the stations – daily. are committed by individuals by altering records. Inspection of various accounts documents and registers maintained at stations. Surprise checks at the stations. frauds. etc. casting wrong totals. if the tickets are issued in serial order. fare temporarily At station..g. Refund on fake BPT/EFT.

total number of tickets issued during the month and the amount realized with bring out the fraud. Tickets issued are not accounted for on the date of issue and the money misappropriated and made good subsequently. 7) Issued tickets are got back from the collecting stations and credit is subsequently taken for them by making them nonissued. 8) Sold tickets are accounted for as non-issued. and sent to accounts office along with other N. the cases should be carefully checked. Cash is temporarily misappropriated by under-casting total of DTCB. This fraud cannot be detected at the accounts office since the tickets are got back in time and without any nipping. The examination of non-issued tickets in hand and their comparison with the accountal in the DTCB will bring out the fraud as the tickets actually issued but shown as non-issued will not be available for checking. In all the above cases.Nos. 3) 4) 5) 6) Tickets are issued and number accounted for but not the value. should be investigated. a careful check of DTCB and Coaching Cash summary book at the station will bring out the fraud.. Any ticket available in the booking station bearing date of issue should be viewed suspiciously. If the tickets have been issued in correct series. S. Wrong commencing number of tickets are shown in the DTCB and Passenger classification so as to make the value tallied with the cash remitted. office. the non-issued tickets should be carefully examined that the tickets do not bear any indication of having been used and have been cancelled at the destination. 3 & 4 cannot be detected at the accounts office. the check of commencing and closing numbers. Whenever the number of non-issued tickets is very high for the nearer destinations.with the passenger classification of the booking station. . In the accounts.I. etc. The record copy of the NI Tickets statement with the DTCB will also reveal the fraud related to tickets made non-issued during previous days. Regular alterations or erasures in the DTCB of the booking station if checking of passenger classification and comparison of collected tickets at the destination will reveal the fraud. At station.

10) Recycling of Platform/Journey tickets already used. 9) Tickets are sold out of turn without dates. Tickets are printed privately and sold. Recycling of platform tickets can be prevented by making the TC to cancel the tickets immediately on collection. While checking the tickets either in running trains or at destinations any undated tickets may be viewed with suspicion. Such frauds are not reflected in the station records.In the accounts office. Tickets statement as they were actually sold by the booking station. Counting of ticket in tubes and stock will prove the missing of such tickets without proper accountal in the DTCB at station. the percentage of missing tickets by the earlier trains will be shown very high. Tickets collected short of destination without issue of TDR are not cancelled but reissued. In such cases. Hence a comparison of the relevant entry in the passenger classification with the monthly summary of will bring the fraud into light.I. Surprise checks at enroute and destination stations and again at the booking station will bring such frauds into light. During surprise checks at stations. Frequent random check of tickets can prevent this fraud. .I. certain tickets already dated will be found in the counter for which accountal is made in the DTCB for the earlier trains/shifts. Such frauds are possible with the connivance of the destination station staff. The tickets will not be recorded in the TCR for the earlier trains by which they are actually received but might be shown as mission. 14) Tickets are issued on collection of full fare but accounted for as issued against concession orders. The accounts office cannot detect this fraud. got back and reinserted in the tubes to be resold in their turn. the tickets will not be available along with N. Availability of collected tickets at the destination without immediately canceling them and recorded them in the TCR will prove such frauds. 11) 12) 13) Return journey tickets collected in advance of their date of expiry and utilized for resale.

In the accounts office. In the accounts office. . Comparison of collected tickets with their accountal in the passenger classification of booking station will prove the fraud. the register of concessions may be checked. absence of concession voucher while checking the passenger classification will prove the fraud. In case of concession order having been lost in transit the “Statement of concession vouchers issued during the month” may be verified. the comparison of the collected tickets or reports of BPTs/EFTs examined received from ticket checking stations with BPT/EFT returns will disclose the fraud. The details of collected BPTs/EFTs at destination can be noted to cross verify with the accountal of BPTs/EFTs in the DTCB of the booking stations. If such tickets are collected at destination the fraud will be disclosed. If tickets are missing are eaten away by white ants.The scrutiny of the concession vouchers on hand with the DTCB will bring the fraud into light. Surprise visits at the booking station and the check of tickets in tubes or at the counter with the ticket stock book and supplied column of the indent will bring the fraud into light. Such tickets may be prepared using single sided carbon. Supervisors should ensure usage of double-sided carbon paper in preparation of BPT/EFT. The TCR of the destination station can also be checked for collection of tickets out of series. The Ticket Despatch Advice can also be checked for the missing of tickets endorsement. the fact is circulated in the Railway Gazette for information and guidance of staff. The absence of entry in the statement will prove the fraud. 16) BPTs/EFTs are issued for longer journeys but accounted for shorter journeys. 15) Tickets are reported missing at the time of supply or afterwards or reported as eaten away by white ants but are actually sold after a lapse of some time and cash is misappropriated. If the concession voucher is already sent to accounts office. Particulars of collected tickets can be verified in the DTCB of the booking station.

which will prove the fraud. 3) Ticket stationery reported missing in supply. 18) Re-issue of tickets tendered for cancellation to misappropriate clerkage charge. Surprise check in the counter and in the train will help to detect these frauds. the other book being shown as stolen or lost. Surprise check may be conducted to find out the availability of tickets already dated. . The clerkage charge will not be immediately accounted in the DTCB. FRAUDS IN BOOKING OFFICE PROVIDED WITH SMARTS : 1) Details in the tickets with improper printing are altered in ink and sold. but used to print high value tickets and sold while stationery available in the printer is shown as non-issued due to non-printing. In the accounts office. the following guidelines are issued to the Station Supervisor and the Ticket checking staff: The Station Supervisor should. To avoid frauds in SMARTS generated tickets. 2) Second printing for long distance in the ticket already printed for short distance is made to misappropriate the difference in fares. Checking the ticket book in use and comparing the entries with DTCB will disclose the fraud.  Regularly check the stock of ticket rolls  Ensure that the printing of the ticket is readable  Check the correctness of pre-printed stock number and the system printed slash number  Keep a watch on the trend of lowest amount of tickets being issued  Keep a watch on the activities of operators and they should not be kept on the same counter for a long period. comparison of collected tickets with BPT/EFT returns will prove the fraud.17) Two books of EFT/BPT may be brought into use but tickets issued from one book only accounted for.

More number of application forms with similar handwriting should be viewed suspiciously to detect this fraud.  Arrange to display a notice for the information of the public to check the pre-printed stock number and the system printed slash number while purchasing the ticket. Such tickets should be special-cancelled through the Batch-incharge duly maintaining proper records. The Ticket Checking staff should. 2) Special cancellation is done on reserved tickets without valid reasons to avoid payment of cancellation fee. the following precautions are taken w.  Ensure that the pre-printed stock number matches with the system printed slash number  Ensure that the ticket is printed on water-marked stationery.  Check the random number and verify with other tickets issued for the same destination on the same date. Reservation tickets.e. 4. Frequent drive should be conducted in the counters in the peak periods. Non-issuing of SMARTS tickets through the system is withdrawn. Platform tickets. In addition. special manual credit taken for cancellation of non-journey system tickets and the special-cancelled journey tickets. TIA and the Supervisor should keep a vigil watch over the pattern of issue of upper class system tickets. etc. The CMI. Feb. 2. 2002 onwards to avoid frauds in SMARTS generated tickets: 1. Wherever necessary manual EFTs may be issued. 3. 5. system generated BPTs should not be issued. Upper class SMARTS tickets can be issued only by the senior most operator of each shift.f. Through SMARTS. which cannot be special-cancelled through the system should be cancelled by taking ‘Special manual Credit’ duly submitting a statement prepared in triplicate along with Balance Sheet. Conduct surprise checks on the counters. FRAUDS IN COMPUTERISED RESERVATIN OFFICE: 1) Encouraging touts and unauthorized travel agents at reservation counters for monetary considerations. Non-journey SMARTS tickets like. issue of manual EFTs. Supplementary charge tickets. .

( ID not required any more) Surprise checks should be conducted especially at the time of opening the tatkal reservation at 0800 hrs on previous day morning. the passenger and ‘Special 3) Permission for name change is given against rules to show undue favour. The provisional chart should be cross verified with original chart and reservation form submitted by the passenger. may be allotted to the public without any authority and not following the instructions. Careful scrutiny of ‘Register of name changes allowed’ with requisitions given by the passengers will reveal the fraud. Original charts should be verified with quota lists and EQ lists received from Divisional Office. 3) Allotment of berths to other than RAC/WL passengers utilizing ‘Not Joining’ berths without making NJ entry in the chart. etc. 4) Reservation under Tatkal quota may be given without insisting on photo identity cards or approved documents.The cancellation form tendered by Cancellation Register’ may be checked. Emergency Quota. Defence Quota. 4) Improper allotment of vacant berths in IMS quota to other than RAC/WL passengers. All these frauds can be detected by conducting surprise checks in the running trains. 6) Unutilised Roadside Quota.. 5) While preparing charts for I – AC / I – Class coupe/lower berths may be allotted overlooking the booking priority. 2) Carrying of passengers without valid ticket or without realizing difference in fares wherever required. FRAUDS IN TICKET CHECKING : 1) Allotment of berths to waitlisted passengers overlooking RAC priority in the running trains. .

Free allowance is allowed on NI tickets. Tickets collected short of destination are quoted to cover free allowance. Adult and child tickets are separately shown in the proforma. Additional numbers of tickets are quoted to give extra free allowance. Surprise checks on the spot at the luggage office will reveal the fraud when the passenger has not left the office. the ticket nos. In case of NI ticket numbers. the numbers will be noted from the NI ticket statement submitted by the station and then checked for grant of free allowance. Short distance ticket numbers are quoted for booking of luggage for long distance. If luggage is booked as ICP. 5) 6) 7) 8) Higher-class ticket numbers are quoted to cover the extra free allowance granted. Full free allowance is granted on child tickets.5) Refund of fare on travelled tickets may be obtained by not endorsing the ticket during travel. Also the TC should nip the ticket immediately after collection at the destination. Free allowance is granted by quoting the number of tickets issued on earlier dates. Tracing the number of passenger tickets quoted in the LTs in the DTCB as issued for the particular train will help to find out the fraud. checking the passengers in the running trains will help to detect the fraud. In the accounts office. on which free allowance is granted as shown in the luggage returns will be noted in a separate proforma and arranged in consecutive order. In case of ficticious number. And the proforma will be checked for the grant of free allowance more than once on the same ticket. Surprise check in the running train should be conducted to ensure endorsements made in the ticket and chart. . FRAUDS IN BOOKING OF LUGGAGE: 1) 2) 3) 4) Ficticious numbers of tickets are shown on the LT to cover the grant of free allowance. consecutive numbers arranged are traced in the passenger classification and their non-accountal will reveal the fraud.

12) Carriage of unbooked luggage in collusion with Guard and the station staff. 3) Overweight shown to allow the party to claim for compensation. By tracing of accountal of LTs issued in the parcel cash summary book. By arranging test weighment and examination of packages fo rmisdeclaration this fraud can be detected. 11) LTs are issue but the freight is temporarily misappropriated. . This cannot be detected in the accounts office. 13) Luggage booked but tickets are not endorsed with the words “LB” to enable the passenger to carry more than the permissible quantity. 2) Misdeclaration of parcels to allow cheaper rates. 4) Paid PWBs issued but not accounted or less accounted (out of regular books or books out of series or books obtained from other stations) and the cash temporarily/permanently misappropriated. this can be detected. 9) Weight of luggage shown less in the LT.Collected tickets should be verified for the date of issue and details of luggage booking in the accounts office to detect the fraud. specially in case of luggage booked as ICP. FRAUDS IN PARCEL TRAFFIC : 1) Showing short weights or charging a parcel on actual weight. Reweighment and examination of the contents of the parcels for misdeclaration will help to detect the fraud. Temporary misappropriation within the same month cannot be detected in the accounts office. Surprise check on the spot with the passengers who have not left will help to detect the fraud. 10) Fully description of the luggage is not given in the LT and free allowance is given on articles for which no free allowance is allowed or which are prohibited to be accepted as luggage. which should have been charged on measurement basis. Inventory taken on contents of BV should be tallied with the guard’s foils and loading summary which will help detection of the fraud.

The supervisor should check the rates shown to find out the fraud. . check of entries in the Guard’s signature book will help to detect the fraud. 5) Less freight is shown in the delivery book than the invoiced freight.Check the record foils of PWBs issued for their accountal in the Parcel cashbook. check the entry in the ICV Stock Register. FRAUDS IN GOODS TRAFFIC : 1) Mis-declaration of goods to secure cheaper rates. 6) Removal of part consignments without effecting delivery 7) Parcels booked to other stations lying without any entry in the station records. 8) Incorrect rating in collusion with the traders. in addition to delivery book. 5) Carriage of unbooked parcels available at destination. 9) Excess and unconnected packages lying at the station without entry in the relevant records. 10) Fraudulent delivery of goods on forged/fake/stolen RRs. The above frauds can be detected as in the case of Parcel traffic. 2) “Paid invoices” issued are not accounted properly to misappropriate cash. MPA will also be referred. 6) Non-accountal of invoices to misappropriate the freight. 9) Prescribed norms may be violated in conducting public auction of lost property or unclaimed packages. 7) Goods on hand but shown as delivered and removed. Careful scrutiny of relevant records will bring the fraud into light. 4) Goods booked “Paid” are accounted as “To-pay” by the booking station and vice-versa by the destination station. 3) Goods are delivered but the freight is misappropriated. 8) Undercasting the total amount in the goods cashbook. The inventory of stock and its comparison with delivery book will bring the fraud into light. In case of goods traffic.

collected railway receipt. The wagon transfer register (Vehicle Register) maintained by the operating staff. accountal in the cashbook. and RR no. check of gate pass. The serial order of issue of gate pass. etc. can be verified to check the timings. Instructions on precautions to be taken at the time of delivery should be carefully observed. The inventory of goods. recorded by the commercial staff in the records available in the goods shed. The total cash remitted should be cross checked with the total cash made over on the previous day to the relieving SM and recorded in the station diary. removal as entered in the delivery book is checked with the goods cash book.The continuation of invoice no. money receipts issued if any will also help to detect the fraud. etc. 2) Dates of delivery. but not removed and no wharfage is collected. 5) As the goods cash is remitted on the following day. 6) Non-accountal or short accountal of wharfage/demurrage charges. An inventory of goods on hand will reveal the fraud. FRAUDS IN RESPECT OF WHARFAGE & DEMURRAGE: 1) The date of arrival of goods and the dates on which goods are available for delivery are incorrectly entered in the delivery book. deliveries made up to the time of remittance of cash may be included in the previous day’s account and wharfage/demurrage occurred if any. which shows the complete record of movement of wagons in the station should be checked to find out the discrepancy in dates of receipt. money receipt. removal of goods are wrongly entered in the delivery book. Date and time of delivery. money receipt if issued and gate pass if issued. . may be misappropriated. should be verified with invoice index register. Alterations in grand total in the cash book. unloading. 3) Time of making over/taking over of wagons to be loaded/unloaded by parties is wrongly entered in the wagon transfer register to show that loading/unloading is done within free time. cancellation of CR Note should be viewed with suspicion. 4) Goods are shown as delivered in the delivery book.

8) Marks are changed/obliterated to render consignments unconnected to avoid payment of wharfage charges. . FRAUDS IN STATION OUTSTANDING: 1) Goods received and delivered but shown as on hand or not received and freight charges are misappropriated. Checking the serial numbering of gate passes and checking the gate passes with the collected railway receipts and delivery books will reveal the fraud. By checking the totals of all the pages of delivery book. Comparison of grand monthly total of wharfage/demurrage column in the goods cashbook with relevant entries in the goods balance sheet also will reveal the fraud. the correspondence to trace the goods may be checked. 7) Less carrying capacity of the wagon may be shown in the delivery book and DC to that extent may be misappropriated. goods will not find a place in the inventory. while the goods are actually removed after the free time. The register of unconnected consignments should be checked up with entries in the unloading tally book. Fictitious items will not be available in the delivery book but entered only in the outstanding list. 9) The gate passes are antedated recording removal of goods within free time. In case of goods shown as not received. The check of wagon labels preserved with the wagon transfer register will prove the fraud. A reference to the money receipt if issued will also help to prove the fraud. wagon transfer register and their comparison with the cashbook will reveal the fraud. If goods are already delivered and freight misappropriated. Action taken by the station staff to connect the unconnected consignments should be carefully examined.Calculation of wharfage/demurrage charges as per the time and date shown in the delivery book. Comparison of inventory with delivery book will disclose the fraud. 2) Fictitious outstanding is shown. Ground inventory of goods taken and verified with delivery book. this can be detected.

: Chapter XXVII of Code for the Accounts Dept. 3) Booking of ‘Paid’ consignment without collection of freight. Wrong delivery 7. 8. 2) To check the genuineness of outstanding. Object of counting cash immediately on arrival for inspection: 1) By comparison of the actual cash with the book balance. 6. On the credit side the cash and vouchers remitted to the cash office and acknowledged by them and other special items by which the SM clear his liabilities are shown.3) Amounts of items shown in the previous month’s outstanding list are increased. if any. Excess or unconnected goods lying without entry in the records 9.Part – II) The station balance sheets separately prepared for Coaching and Goods traffic are the ‘personal accounts’ of the SM. 5) Collection of illegal gratification.. 4. 2. Object of taking inventory of Parcels/Goods on hand : Inventory of parcels/goods on hand will help to find out the following frauds: 1. . 3. Any balance represents the unrealized 10. Delivery of ‘To-Pay’ consignment s not recorded to misappropriate freight charges by showing the consignments on hand. The entries in the outstanding list are compared with other relevant records to detect the fraud. Consignments lying on hand but shown as not received Outward consignments lying without forwarding note. Delivered goods allowed to be warehoused without collecting wharfage. 4) Delivery of inward ‘To-Pay’ consignment without collection of freight. Delivery of consignments in advance of collection of freight. temporary misappropriation can be brought into light. 5. Delivery of part consignments without collection of freight. Unbooked goods found on hand. CHECK OF BALANCE SHEETS WITH MONTHLY RETURNS (Ref. On the debit side various items of traffic for the accounting of which the SM is responsible are shown. Mis-declaration of goods.

Passenger – Printed tickets (Local & Right hand side of Passenger Foreign) classification (Local & Foreign) Passenger . The entries under various heads in the balance sheets are checked for their correct accountal with the corresponding figures in the connected returns. Carriages and Boats (Local and Foreign) Boats returns (Local and Foreign) Platform Tickets Platform Ticket returns Reservation charge Tickets Reservation charge Ticket returns Supplementary charge tickets Supplementary charge ticket . Coaching Balance Sheet: DEBITS Items in the Balance Sheet Opening Balance Returns with which checked Closing balance of the Previous month balance sheet and balance advice received from accounts office. Passenger returns (Local & Foreign) Outward Parcels (local & Foreign) Outward Parcel returns (local & Foreign) Outward Motorcars.earnings at the close of the month for the collection of which the SM is responsible are shown as ‘Closing balance’.BPT (Local & foreign) BPT return (Local & Foreign) Excess Fare Ticket (Local & foreign) EFT return (Local & Foreign) Luggage (Local & Foreign) Luggage returns (Local & Foreign) HCD (Local & Foreign) HCD Returns (Local & Foreign) Govt. The transactions have been initially brought to account in the station records and on the basis of station records various monthly returns are prepared and submitted to Traffic Accounts office. The main headings of the balance sheet and the returns with which these are checked are given below: How station balance sheets are checked with returns? 1. Passengers (Local & Foreign) Govt. Carriages and Outward Motorcars.

Rebooking Paid on charges Credit Advice Copies of credit advice received from Traffic Accounts Office. Demurrage. Outstanding list Wharfage return & Undercharges return . etc.Notes received from cash office.Excess in Booking Left Luggage charge Demurrage & Wharfage Sundries Error Advices & Disallowances received returns Excess in Booking returns Left Luggage returns Demurrage & Wharfage returns Sundries returns Cashier Copies of Error Advices and outstanding list in case of disputed debits & acknowledged foils of C. Remission Orders Closing Balance (2) Goods Balance Sheet: DEBITS Wharfage returns & R.s received.O. Voucher remittance note and Cash Remittance Note & Bank remittance statement in case of bank remittance. Special Credits: Freight.R. CREDITS Items in the Balance Sheet Cash & Vouchers Returns with which checked Coaching cash summary book. Wharfage. Statement of lost property sent to on consignments transferred to lost lost property disposal station. property disposal stations.

Outward Goods Paid (Local & Loading Register (Local & foreign) Foreign) and Goods Cash Book Inward Goods – To-pay (Local & Delivery Books (Local & foreign). Undercharges return. Delivery Books.Notes received from cash office CREDITS Items in the Balance Sheet Cash & Vouchers Returns with which checked Goods Cash book. Special Credits : Overcharge sheets Rebooking Paid-on charges Overcharges refunded at the time of delivery Overcharge sheets Credit Advice accounts office from Copies of credit advice received from accounts office Statement of lost property Freight. voucher remittance note and Cash Remittance Note & Bank remittance statement in case of bank remittance Copies of Overcharge sheets Wharfage and Demurrage returns.R. Demurrage & Wharfage returns Error Advice & Cashier Disallowance Copies of Error Advices & Outstanding list in case of disputed debits. Demurrge.Items in the Balance Sheet Opening balance Returns with which checked Closing balance of the Previous month balance sheet and Balance Advice received from accounts office. etc. Acknowledged foils of C. Wharfage. foreign) and Undercharges MPAs & Reconciliation statements (Local & Foreign) Siding Charges Trip register & siding charges return Crane charges Cranage register & Crane charges register Demurrage & Wharfage Delivery books (Local & Foreign). consignments disposed on lost property consignments sent to disposal stations Statement of recoveries & CRAs received .

it is found that an undercharge exists in the transaction. such an undercharge will not be considered as time-barred even if period of six months from the month of accountal has elapsed. all such undercharges should be entered in a register. 3) If any document is not susceptible of check for want of any information from the station staff or traffic authorities and the required information has been called for within six months’ limit but the station staff or the Traffic authorities have failed to supply the information in time and if on receipt of the information. The undercharge so detected should be debited against the station with the approval of the Accounts Officer quoting reference to the correspondence with the station staff or Traffic authorities on the Error Sheets. 2) Except in special circumstances and in case of errors detected by the Inspector of Stations Accounts and the officials of the Audit department. no debit will. Para 2803 Exceptional circumstances to raise Error Sheets : 1) Undercharges upto the limit prescribed by the Railway Board in individual items of Coaching and Goods earnings may not be debited against stations unless they present special features such as undercharges arising from failure to recover minimum freight. Any tendency on the part of the station staff to take undue advantage of this concession should be prevented. except in the cases mentioned in para 2803. For this purpose. Error Sheets : When a mistake involving apparent financial loss to the Railway Administration is noticed. etc. fares. be raised against stations more than six months after the month of accountal of transaction in station returns.received form DCM Special recoveries Closing Balance Outstanding Lists ACCOUNTS OFFICE DEBITS AND THEIR CLEARANCE (Ref. ordinarily. . undercharged or unaccounted for should. be debited in full to the station responsible by means of an Error Sheet. the amount short collected.: Chapter XXVII of Code for Accounts Department – Part – II) Para 2802. which should be reviewed monthly by the Accounts Officer. The error sheets should be prepared in quadruplicate and 3 copies sent to outstanding branch of Commercial department.

. Para 2804 full particulars of debit to be given in EA : Full particulars of the transaction giving rise to the debit should be given in the Error Sheet. If he has any doubt about the correctness of the charge.50 but not exceeding Rs. should be recorded in a register. he should consult the officer of the Traffic/Commercial Department. it should be ensured before the issue of an Error Sheet that the undercharge is correctly due and recoverable from the station. and the Error Sheet should only be issued if the later agrees to its correctness. Para 2806 In case of doubt Traffic/commercial office to be consulted before raising EA: All Error Sheets for undercharges in fares and freight for amounts above Rs.100 and 10% of those above Rs. Para 2805 To avoid unnecessary Error Sheets against stations : With a view to avoiding issue of unnecessary Error Sheets against the stations.4) An undercharge coming to notice after the expiry of the time limit referred to above for which debits could not be raised due to the negligence of the Accounts office. the reasons for the debit being clearly stated in the column provided for the purpose. suitable action being taken against the staff at fault in the Accounts Office. which should be put up to without bringing the same to account.100 should be checked personally by an Accounts Officer. the matter should be referred to the Heads or Deputy Heads of the department for a final decision. who deals with such cases. In the case of disagreement. before they are issued to stations.

ADVANCED GOODS THEORY THEORY OF RATES AND ITS SALIENT FEATURES Being the principal mode of transport in the country. which can bear a higher tariff. and higher rates are charged for commodities. IR carried over 13 million passengers per day and more than a million tonne of freight traffic daily. By charging the traffic which can bear only a low tariff at lower rates and other traffic which can bear a high price at higher rates the total traffic can be maximized and so also the total revenue. During 2000 – 2001. work. Railways has also to consider the social costs and their impact on the nation’s economy while fixing their tariff. 6. 4. being a Government sector. POL products. etc. Indian Railways are moving a large volume of passenger and freight traffic. . The profitability of the Railways can be increased only if fares and freight rates are increased in line with price increase of major inputs required by Railways. This involves cross subsidization by some streams of traffic of others. lower rates are charged for commodities. which can bear only a lower tariff. 3. In fact the gap between increases in the general price level and the Railways fares and freight rates started widening rapidly since 1965 – 66 and since then the Railways started to show deficits. The passenger segment includes variety of people whose object of journey is family. Here again. As the over all cost of providing transport is met by carrying the whole stream of traffic – low paying as well as high paying traffic. The willingness to pay for the value added services. The present acute financial scrunches of Railways may be attributed by any factors of which the setbacks in the rating policy contributes more. such a basis of charging is generally accepted as fair to al rail users. business or duty. salt. While fixing the rates.  No price needs to be below the cost of service  Any price can be up to the value of service 2. Likewise the freight segment includes the movement of essential commodities like food grains. etc. 5. In this context the study of Railway rate structure gains it’s importance. fertilizer. pilgrimage. cement. Important characteristics of railway rates : 1. Hence the Railway should adopt a reasonable theory of rates to fix fare and freight rates judiciously. vacation. sugar.

food grains and Oil seeds with England and import traffic in finished products through ports of Madras. Development of Railways in India was encouraged mainly by Political and partly by commercial interests. The first two companies founded in the U. in 1845 & 1846 to construct rail lines in India could not attract sufficient capital. EVOLUTION OF FREIGHT STRUCTURE FROM 1833 TO 1947 To have a proper appreciation of the present freight structure. The nationalist and Swadeshi movements pointed out the harm and took measurers to start . Still cotton mills. it may be analysed on the basis of three distinct periods as follows : a) Pre-war & Post-war rating structure (1936 – 1947) b) Freight structure since 1948 (after Independence) c) Freight structure after implementation of recommendations of Freight Structure Enquiry Committee in1958. Within the next two decades. But the railway rates are in the nature of administered prices and not market determined competitive rates. Hence the British Government (the then rulers of India) has decided to give a guaranteed dividend of 5% of the capital and free of cost land to attract the companies to invest on Indian Railways. as they are accountable to the legislatures. Thus the then British rulers exploited the economy of the country.7. Development of Railways in India : The Railway in India were originally constructed and operated by the British companies. the growth of Railways lead to rapid development of import trade in India. The freight traffic also tended to increase slowly. Accordingly railway routes were organized towards the ports to ensure export of cheap raw materials and towards internal markets in the country to ensure import of costly manufactured goods. industries were not encouraged to develop in India by the then British rulers. Since finished products of newly developed Iron and Steel and Engineering industries in England had a good market in India. Later our national leaders felt the setback and harm done to indigenous industries.K. and Culcatta. Bombay. The new railway developed export traffic of cheap raw materials like cotton. coal mining industries and jute mills began to grow slowly in India.

The rate structure had suffered with the following setbacks:  The Railway companies could fix the rates and fares with prior approval of the Government.I.  When the net profit of the railway went below 5% of capital. The broad features of earlier rate structure introduced w.f.1853 as per the agreement between the railway companies and the then British rulers of India (East India Company) were as follows:  Political and Military considerations were given industries and to develop the existing industries indigenously and succeeded to a great extent. the difference had to be compensated by the Government. Rly 10 14 18 20 E.I.  Construction and operation of railway lines were extravagant as there was a minimum guarantee of 5% dividend on the capital by the Government.  An artificial trust was given to the export trade in raw materials and import trade in finished goods. Still they could not order reduction in rates to bring the profit below 10% of capital.07.05. could interfere only when the net profit of the Railways exceeded 10% of the capital outlay.e.Rly 9 13 18 27 MADRAS Rly.  Govt.  Government could only deal with proposals to increase the rates or to fix fresh rates as proposed by the Railway companies.  The rates were not fixed to assist in the development of local industries.P.  Each Railway followed its own independent rating principles with a meager 3 to 5 class rates and earned high profits with minimum volume of traffic. but the Government had no power to reduce the rates already established. 1856 – 57 1858 – 59 6-75 8 13-5 10 20-25 12 . Classification & Scales of rates during 1853 – 1859 (Rate in pies per ton per mile) Class 1 2 3 4 G.

Instead of strengthening the capacity. Accordingly. Seven class rates were prescribed including separate class rates for Food grains and Coal. In 1880. d. the following changes were made in the earlier rating policy. the rate from Delhi to Calcutta was affected. as the distance was 954 miles as against the traffic to Bombay. Maximum rates were prescribed for each class within which the railway company could fix the rate for the class. In the movement of grains. the railway resources to move the traffic were inadequate. Note : The maximum rates (Pies per ton per mile) fixed for Coal was 10 Pies and for food grains was 12 pies. Railway companies resorted to levy very low rates. . c. a. Hence the Government realized the need to control the rating policy. With increasing inter-railway competition resulting in very low rates. Nothing was mentioned regarding commodities chargeable under each class and transfer of one commodity from one class to another by individual railway. the railways were free to adjust their rates within the maximum since there was no minimum quoted. b.5 30 54 Only three classes were maintained and all the commodities were accommodated within these 3 classes in Madras Railway During 1860. The rates for food grains and coal would be under the control of the Government. the construction of Rajputana Malwa Railway between Delhi and Bombay via Ahmedabad reduced the distance to 888 miles against 1234 miles via Allahabad. the railway companies restricted the volume of traffic by increasing the freight rates. Anyhow. Still. This made the railway companies to reduce the rates for food grains and this was an important landmark in the history of rail pricing in India. It varied from 12 pies to 54 pies for Class – 1 to Class – 5. no minima rates were prescribed. though the demand for goods traffic increased. to protect the people from monopolistic price fixing by Railways. the Government had to pay attention to the railway rating policy. Hence because of inter railway competition.

a fixed incidental charge.Railway should be followed in all railways unless there were sufficient reasons such as previous contracts. etc. 6) There should be no undue preference i. Mileage rates chargeable on the distance and Terminal charges . undue preference. 5) In the case of competitive routes between two stations. 4) Railway companies were permitted to alter their rates within the minimum and maximum prescribed to suit the various conditions. 2) To avoid fixing very low unremunerative rates due to inter-railway competitions by the railway companies as they were protected by 5% guarantee on their capital.. to raise more . disputes between railways became a common occurrence. The unremunerated special rates quoted out of competition among railway companies were cancelled. In 1917.On 12th Dec. Indian Railways Act was enacted affording legal provisions to avoid unreasonable rates. In 1890. the company owning the shorter route fixed the rate. 3) Two charges ere admissible viz. 8) Company Railways ere prohibited from making any alteration in the general classification without prior sanction of government.. 7) General classifications of E. The railway companies realized the advantage of agreement in the division of traffic. In the later years many committees and commissions were formed to study the freight structure and suggest methods to improve freight earnings.e. Due to increase in inter-railway competition and the increase in number of railway lines. Impact on the1st World War on the rating policy : During the First World War there was a general rise in the prices and wages and a decline in earnings.. It led to manipulation of rates and classifications and unnecessary complications. The pressure of wartime compelled railway companies to increase rates within their prescribed maxima.I. etc. Minimum rates were also fixed. the Railways should not make any preferential bargains with particular person or company such as granting them favourable scale of charge than those granted to the public. the government passed a historic resolution directing the railway companies to adopt certain principles in rating and the guidelines given were as under: 1) To protect the public and to prevent unreasonable charges Maximum rates were fixed both for passenger and goods traffic. 1887.

Pre-War rating structure in 1936 The important features of pre-war rating structure are indicated below: 1.f. The committee disapproved the levy of surcharge and suggested. Government appointed Acworth Committee.e. the policy of rating was modified again in 1936 as under. As the surcharge income was passed on to the government. Though the revise classification achieved the objects of increasing the revenue and removing the surcharge. the Government levied a surcharge of one pie per maund on coal. coke and firewood and two pies per maund on other goods. There were 16 class rates.01. To sort out these objections. Recommendations of Acworth Committee in 1921 : The traders objected the surcharge since it increased the rates without giving any resultant benefits to them. the railway companies also objected that there was no benefit to them.1922. . the following objections were raised:  The unaltered minima widened the gap between the maxima and minima and conferred increased discriminated power on the railway companies.04. The new classifications were brought into force w. To overcome these objections. Also the maxima rates prescribed earlier were increased from 15 to 25%.  The re-classification was not sufficiently broad based to cover the higher rated commodities.  The widely varying gaps between each class made the classification itself inflexible.  To increase the number of classes and raise the maxima to bring more revenue  To allow suitable alterations in the classification Hence the number of classes were increased to 10 from the existing four classes and two special classes for food grains and coal.revenue.

4.2. 9.. 5. Different pattern of rating in through booking. Terminal charges levied at different rates by different railways even for the same commodities. evolved by the individual railways. the rate per maund was separately calculated and added together to get the aggregate rate per maund. 7. There were 25 Scheduled rates varied from railway to railway even for same commodity. Individual Railway companies prescribed ‘Exceptional class rates’ which were above as well as below the general classification rates. 8. FREIGHT STRUCTURE SINCE 1948 (AFTER INDEPENDENCE) Prior to 1948 each railway company considering it’s own financial interests. On discontinuous basis with regard to the distance.e. In addition “Scheduled rates” were also quoted with minimum weight conditions attached.e. These class rates were not on telescopic basis. the charges were calculated on dis-continuance mileage basis. In case of through booking.  The freight structure suffered with major defects and it was not uniform for all railways  The working of railway companies was extremely individualistic And hence it became necessary to further review the freight structure especially after attaining independence of the counter. investments for profits and their rating very outset regulated by this aim only. . From the above features it can be understood that. Flat type rate irrespective of distance of traffic. 6. i. formed a separate selfish entity No uniform freight rate policy was They were essentially financial and other practices were from the Their rates were broadly on the following lines : (i) (ii) (iii) (iv) (v) On par maund or per tonne per mile basis i.. Adaptation of separate minimum for each railway Varied terminal and transhipment charges according to the commodity were levied in each railway. The Scheduled rates were applied at Railway Risk in some Railways and at Owners Risk in some other Railways. Station-to-Station rates were quoted not only between specific stations but also between a specific originating station and via a specific junction and between via one junction to via another junction. 3.

Then the government of India thought to revise the very structure of rates. There were 15 class rates for Smalls traffic and 13 class rates for wagonloads.CRAWFORD. Post War Rating Committee. According to his recommendations. the then Assistant Chief Commercial Superintendent of Madras & Southern Maratha (M & SM Railway) as the Secretary.01.  Prevention of wastage of transport resulting from circuitous routing due to inter-railway competitions  To make modest increase in freight rates in match with the increase in working cost. . Post war rating committee: By April 1944. The Main changes brought into force as per the recommendations: 1) 2) 3) 4) 5) 6) All the class rates and wagonload rates were made telescopic. the major railway companies came under the management of the Indian Government. The committee entrusted the work to a sub committee with Mr. It formed a commercial committee. simplified and uniform freight rate structure was brought into force with effect from 01. Thus it is easy to understand that freight structure was not rationalistic or nationalistic or uniform over all railways.K.(vi) No uniform rating policy in all the railway companies. freight rate policy was evolved with due consideration for the following:  Simplification and rationalisation of freight rates on India Railways. He continued this job as Joint Director of the Committee. Standard minimum weight conditions were introduced and uniformly applicable over all railways.1948.L. Maximum rate per mound was fixed for each class for booking of smalls.  Re-orientation of railway rating policy along national lines. IRCA was entrusted with this task. The class rate/wagonload rate prescribed for any commodity was applicable uniformly for all the railways Low uneconomic station-to-station rate quoted by different railway companies were cancelled or enhanced. As such a rationalized.

They may be summed up as under: 1) 2) 3) 4) There were no relationship between 15 class rates and 13 wagonload rates governing the classification. the level of charges was raised generally.  A minimum distance for charge for each railway (20 miles) was prescribed. Only 99/3000 commodities had Wagonload rates. The Class did not really give any effective tapering over long distances. By reclassifying many commodities and readjusting the difference between railway risk and owners risk rates. the revised structure was much appreciated and the railway freight structure enquiry committee 1955-57 observed as follows in the way of its appreciations: “After practically a century of experiment and differing practices. Terminal charges and Transhipment charges were standardized and quoted uniformly for all railways. wherever necessary. the terminal charges were continued to be levied. To meet the increased cost of operation. The routing principle evolved that the traffic was to be carried by the shortest route and charged at the cheapest rate. So. the freight structure f Indian Railways was assimilated and a grate step forward was taken in evolving a rationalized freight structure to serve the interest of the community as a whole. anomalies in the earlier rating principles were removed.” FREIGHT STRUCTURE IN 1958 RECOMMENDATIONS OF FREIGHT STRUCTURE ENQUIRY COMMITTEE (OR) MUDALIAR COMMITTEE Though the freight structure introduced in 1948 was a great step forward towards simplifications and rationalization of freight rates there were serious defects also.  Transhipment charges and ghat charges were levied.7) 8) 9) 10) Total distance over the entire length of haul was taken for charging adopting continuous distance basis. Freight rate structure was further complicated as explained below:  Though standardized. . All commodities did not have a rate for wagonload movements.

P. Jt.A. 4. Member Shri. 5) 6) Withdrawal of station-to-station rates and rigidity of the rate structure invited severe criticism.&Industry Member shri G.A. Ex. 7.Financial Commissioner/Rlys. MP Member Shri.t was necessary to generate additional revenue to meet the increase in operating costs. Min. Secy. an overall minimum charge was prescribed for wagonload consignments at the rate of Re. no additional freight charges could be made on traffic moving at smalls rate and for two of the wagonload scale.V. of Comm. the government appointed a Freight Structure Enquiry Committee in June 1955 with the following terms of reference: a) To review the present freight structure and to suggest modification bearing in mind the needs of a developing economy and to maintain the financial stability of the Railways. A short distance charge was leviable for all movements less than 75 miles  In addition. the operating expenses of railways were going up and I.Ramaswamy Mudaliar. Board Member Shri.D. MP Chairman Shri. 8..T.K. 2. GM/E.Basu.Borooah. MP Member Shri I.S. To examine statutory provisions with regard to responsibility of Railways as carriers and made proposals for adjustments in freight for such responsibilities.N. Saldhana Secretary . Beyond 1500 miles.S.Puri. 6.Jha.Rly.1 and annas 12 per ton on the carrying capacity of the wagon used for loading.MT/Rly. 7) And therefore to remove the basic defects in the old structure and to ensure adequate revenues. To examine and suggest for effective functioning of Railway Rates Tribunal To make any other recommendations b) c) d) The composition of the Freight Structure Enquiry Committee: 1. And therefore it was a free carriage over a certain portion of distance. As years went by since the revision of 1948.K. Dr. 5.Bhandarkar.Singh.K. Ex. Member Shri L.A. 3.

11) Minimum distance for charge should apply once only in through booking also.) 7) The relativity of rates as between smalls and wagon loads as to the extent of 15 to 36 %. 6) The wagonload rate would have a minimum weight condition for every commodity (for a small number of commodities the class rate will apply on Any Quantity – e. Boats. transshipment and ghat charge.g.. 4) A total of 31 class rates were quoted excluding coal and livestock. maxima and minima rates.e. The railway should reserve the right to perform loading/unloading if the owner fails to load/unload the goods on collection of prescribed charges. short distance charge. 5) For all commodities two sets of rates –one for smalls and the other for wagonloads should be quoted. Main recommendation of the FSEC 1955 – 1957 : 1) A revision of pattern of legs of the telescopic scale (Instead of one existing leg up to 300 miles. a percentage system of classification rates on the basis of a standard rate styled as class 100 rate should be introduced. And other classes should be expressed as a percentage of class 100 rate. 3) Due to adoption of the system of percentage classes.The committee submitted its report in April 1957 and based on the recommendations a new freight structure was introduced from 1st October 1958. it would be possible to introduce intermediate classes as and when required. 8) The existing minimum weight conditions were enhanced by about 20 to 25% 9) In case of wagonloads. owners should do loading and unloading. overall minimum charge per ton for wagonloads. . etc. 10) Abolition of separate terminal charges. the committee suggested four legs i.. 12) To ensure financial stability of the railways the existing scale of rates should be increased 13) Block mileage basis with blocks of five miles upto 500 miles and of 10 miles beyond 500 miles. Aeroplanes. four distance slabs) 2) Instead of 15 class rates and13 wagonload scales.

Owner’s Risk Rate was prescribed only for 31 commodities and freight at Railway Risk Rate in this case should be 20% more than the OR rate. Minimum charges per wagon Transshipment and Ghat charges . the Government introduced 100 – B class rate which is lower than 100 – A class rate. Loading and unloading of goods booked at wagonload rates had to be done by the owners.e.f. Calculated charges were published in the form of goods rate tables with blocks of : 5 miles 10 miles 15 miles 5) 6) 7) upto 500 miles from 501 miles and upto 2000 miles beyond 2000 miles 4) 8) Minimum weight conditions were attached to wagonload rates. Industrial and economic conditions or of the commercial working of the railways Revision of freight structure based on the recommendations of the FSEC Based on the recommendations of the Freight Structure Enquiry Committee.14) Almost all commodities should be quoted with RR rate and only a few commodities should have OR rate. a new freight structure was introduced w.10. 16) The constitution of RRT should be amended and RRT should consist of an experienced High Court Judge as President with two other member chosen for their knowledge or experience of commercial. The following additional charges were withdrawn : a) b) c) Supplementary charges.1958 with the following broad features : 1) 2) 3) 45 Rates scales were introduced (22-5 – A to 180 – B) All commodities were given smalls and wagon load rates Two standard class rates called 100 – A class rate and 100 – B class rate wee introduced and other rates were related as percentage of these rates. 15) The railway should assume Common Carrier Liability. Other rates shall apply at RR rate only. 01. To keep the increase in rates to a certain level for some commodities.

FREIGHT STRUCTURE INTRODUCED WITH EFFECT FROM 01. other wise called the Mudaliar Committee was the first and the only committee with which public men and Members of Parliament were associated.04. Adhoc increases in rates were made by Railways every now and then to meet the increase in operating costs and other requirements of the Railways. A.01.1970 After evolving freight structure in 194. B. B-Spl. and R scale applicable for wagonload traffic and C scales applicable for smalls traffic under many of the class rates were merged and replaced by one single basic scale. During 1969 – 70. And therefore the freight structure evolved on the recommendations of this committee was truly a national freight structure... .d) e) 9) 10) 11) Terminal charges Short distance charges... no free carriage beyond 1500 miles.04. They were corrected and modified in more than one occasion according to the mounting cost of transportation and to meet the need of growth of industry etc. There had been a steady fall in the proportion of high rated traffic with corresponding increase in the proportion of low rated traffic. Thus the total number of classes was reduced from 61 to 30. This imbalance could be restored only by increasing the rates for low rated commodities relatively more than for high rated commodities. it was found that the pattern of traffic had changed significantly. Minimum distance for charge shall apply on through distance irrespective of the number of railways involved Coal rate was revised. planned in Five-year plans. The railway freight structure enquiry committee.1970. Keeping in view the above back ground. changes have been made later since defects and deficiencies were experienced.. which has resulted in imbalance in freight earnings.e.e. The important features of the rationalized freight structure were as follows: The six basic scales viz. The ceiling on rate for distance beyond 1500 miles was abolished i. A-Spl.f. a rationalized freight structure was introduced w.

65 1 .1974 and 01.f.41 1 – 18 0 – 94 0 .f. 01.e.e. calculated on the following basis : Note: The rates w. Distance in Kms.f. 01.e. 01.f.1970 & w. 1 – 100 Plus 101 – 250 Plus 251 – 500 Plus 501 – 1000 Plus 1001 – 1500 Plus 1501 – 2000 Plus 2001 – 2500 Plus 2501 & above Paise per Km.04.e.01.1974 1 Km block 5 Kms block 10 Kms block 25 Kms block 50 Kms block The rates were calculated for the following blocks of distance w.04.per quintal 2 .53 1 . per Quintal) were derived from the base scale.1983 are given below for comparative analysis. 1 – 40 Plus 41 -100 Plus 101 – 250 Plus 251 – 500 Plus 501 – 800 Plus 801 – 1200 Plus 1201 – 1800 Plus 1801 – 2400 Plus 2401 – 3000 Plus 3001 & above Rate w.1970 3 -10 1 – 73 1 – 25 1 – 05 0 – 98 0 – 90 0 – 80 0 – 60 0 – 40 0 – 25 Rate w.01.04.1983 : Distance in Kms.f.e.1974 3 – 26 1 – 82 1 – 31 1 – 14 1 – 07 1 – 01 0 – 90 0 – 68 0 – 45 0 .04.04.The different class rates (Paise per km.01.1983: . 1 .1970.04.04.82 0 – 71 The rates were calculated for the following blocks of distances : Distance 1 – 40 Kms 41 to 250 Kms 251 to 800 Kms 801 to 2400 Kms Beyond 2400 Kms Block w.f.28 The basis of calculation was as follows w.01.e.f.e.

5) The class 90 is the lowest class (against 80 – A earlier) and the class 300 is the highest class (against 300-X earlier).04.e.04.f.Distance 1 – 75 Kms 76 to 250 Kms 251 to 800 Kms 801 to 2400 Kms Beyond 2400 Kms Block w.04.f.04. 2) Out of 59 existing classes.f.01.f. 6) Hence any commodity hitherto chargeable below class 90 will be now be chargeable at class 90 w. 01.04. 01.2002. 01. 01. Whenever the increase in the rates for different commodities prove to be inadequate to cover the increase in operating coasts.e.04.04.2002 1) There were 59 – class rates w.04. 01.2002.1983 1 Km block 5 Kms block 10 Kms block 25 Kms block 50 Kms block The rates were calculated for the following blocks of distance w.04. 25 class rates was reduced from 59 – 32 w. the Railways made adhoc increases in freight rates.e. as in both cases the number of class rates was drastically reduced.2002.e.e.f. 01. 4) The revised 32 class rates were the related percentage of base class 100.01.e.f. 01.1970 may be comparatively analysed with the rationalization of freight structure w.f.2001 denoted by numbers from 80 – A to 300 – X. HISTORY REPEATS (Comparison of freight structure in 2002 with 1970) The rationalization of freight structure w. While the rates are so increase.2002 and commodities hitherto chargeable at class 300-X will be chargeable now at class 300 w.e.f. 3) There was no increase in the existing freight rates.f.04.2001 1 Km block 5 Kms block 10 Kms block 25 Kms block Special features of Rationalised freight structure w.f. it may be essential to keep the existing rates for some low rated commodities .e.e.2001: Distance 1 – 100 Kms 101 to 250 Kms 251 to 800 Kms 801 to 6000 Kms Block w.01.e.

minerals.. Railways do not charge all these commodities in the same uniform rate. etc. perishables. by increasing the rates for low rated commodities relatively higher than that of high rated commodities.f. what the traffic will bear) . Onion Jaggery & Shakkar Grains & Pulses – Div.. To denote the classifications. food grains. they are grouped into a limited number of groups. These commodities directly or indirectly enter into the daily life of common man. And hence there will be a reduction in commodities. etc. etc. the rate of internal cross subsidization will be reduced to some extent. The broad principles.2002. coal. commodities in bulk and bags. they may be suffixed with letters like “A. which govern the classification.A & B Sugar Cement clinder Cement Sponge Iron Iron or Steel – Div. When the imbalance becomes very wide. exempted from such adhoc increases.e. Sufficient revenue will be generated as the low rated commodities are not affected by the rate increase and the low margin in case of these commodities are compensated by the larger margin earned by high rated food grains.” thus increasing the number of classifications. B. The process of grouping of commodities into classes and prescribing rates for these classes is known as ‘Classification’.A. are :  The value of service (i. the freight rates will be rationalized. which are. sugar cane.e. dangerous goods. fodder.01. in addition to revenue generation as proposed. considering their utility in the society. X. Due to rationalization of freight structure w. For the purpose of differential charging of various commodities..B & C Train Load Existing Revised ----95-M 95 140-M 105 140 135 145-A 140 150 145 200-A 190 Wagonload Existing Revised 90-C 90 115-K 90 100-M 95 145-M 110 145 140 145-B 145 155 150 200-B 200 CLASSIFICATION OF COMMODITIES Railways are carrying a variety of commodities – raw materials. which are called ‘Classes’. the classification for charge for some commodities were reduced as follows: Example : Commodity Vegetables & fruits – NOC.04. finished products from industries.

less the margin of profit sets an upper limit of freight charges. which the commodity can bear. The cost of service In applying these principles. • In other words. To give an example. since the freight will be a small proportion of the value of the commodity at the destination. • It will hamper the movement of the commodity if the freight charges are more than this quantum. This type of indiscriminate charging is essential in rail pricing to ensure the movement of both high value and low value commodities. The factors that determine the highest charge for any commodity are as follows : • • The effect of the rate on the demand for the commodity The difference in the cost of production . Thus adequate earnings will be generated to cover the total expenses on the whole traffic and leave marginal surplus. • A commodity has to be moved from Station ‘A’ to Station ‘B’ • The difference in price for the commodity at Station ‘B’ and at Station ‘A’. transportation commodity have to be borne in mind. characteristics of the VALUE OF SERVICE PRINCIPLE: The ‘Value of Service’ principle is also known as “what the traffic can bear”. • Hence Railways should not charge more than what the traffic can bear. the value of service may be defined as “the highest charge that can be levied without preventing the transportation from moving”. Likewise. And hence the low commodities should be charged with lower freight rates. Any commodity will move from one place to another only when the freight is charged in such a manner to make the movement profitable for the trader. the freight on a low value commodity. the value of service fix the ceiling limit for the freight charge beyond which the traffic will not move At the same time commodities of high value can withstand a higher freight. According to LOCKLIN – an Economist. though low may be a substantial proportion of the value of the commodity.

To explain item (c) above. And the finished products like piece goods. etc.per kg. which are consumed in large quantities move largely by railways. To explain item (b) above. maintenance of lines.150/. “what the traffic can bear” does not mean charging an exorbitant rate. . Likewise luxury goods of higher value. may be charged more.g. Furniture are charged more than timber. e. regarding value of service the following factors have to be considered : a) Value in relation to weight b) Use of the commodity in the society c) Volume of traffic moving To explain item (a) above. But it is not so easy to compute such a figure due to many factors such as varied investment made on construction of lines. fixing accurate charges will be very easy for the Railways. which is in the national interest. In other words the principle can be accurately defined as “not charging what the traffic cannot bear”. they are charged at lower freight rates.g. furniture. As these commodities enter in the daily life of common man. And hence charging. are justified to be charged at lower freight rates.. etc. e. which are mainly used by Agriculturists (bulk of people in India) and raw materials carried to the Industries. Pottery are charged more than clay.: Piece goods are charged more than cotton. etc. a commodity valued at Rs.: Television and other electronic goods.• • The difference in prices in two places The cost of obtaining commodity from an alternative source of supply Further. will be charged at higher rates.5/. etc. manure. COST OF SERVICE PRINCIPLE: If the cost of transportation of each and every commodity can be calculated accurately. food grains. commodities like salt.per kg. may be charged higher than another commodity valued at Rs. agricultural implements. which move in negligible quantity. The principle is charging cheaper rate on traffic that will not move at normal rate and charging higher rate on traffic that withstand the higher rate.

But fully pressed cotton can be loaded up to 17 tonnes in the same wagon. 5. . 3. 2. 1. which affect the cost of service or cost of transportation of different commodities.. While fixing rates. Therefore it is justified in charging a lower rate per quintal for dense commodities than the light commodities. These variable costs fix the lower limit or floor below which the rate should not be levied. 4. fresh fruits. The ability to load depends upon the nature of goods and kind of packing. Use of special type of wagons Extent of empty running involved Transportation characteristics of the commodity. So the transportation cost of these commodities is practically the same. but on the basis of certain general principles like Variable costs or Relative costs. It is also a fact that light commodities when press packed become dense. the factors affecting the cost of service should be borne in mind. It is also borne in mind that certain commodities like vegetables.e. etc. So a lower rate for the pressed goods than the rate for the loose goods can be quoted. The cost of hauling does not vary in this case too. i. 6. Factors affecting ‘Cost of service’: The principal factors. the freight rates are levied. The cost per unit weight of the commodity will be less in case of iron or steel and more in case of loose cotton. Loading Characteristics : This may be explained as follows : Loose cotton when loaded fully in a wagon (BG 4 wheeler with MCC 22 Tonnes) will be of weight 4 to 5 tonnes only. And hence in between the ‘Cost of service’ and ‘Value of service’ the rates should be fixed judiciously. The freight earning in case of iron or steel is on a weight of 22 tonnes and in case of loose cotton the earnings is on a weight of 4 to 5 tonnes only. Bulk in proportion to weight in transit. are as under : 1. Susceptibility for loss or damage & liability in respect of claims. Volume of traffic.Hence it is not the actual cost of service. Loading characteristics. cannot be loaded to the brim of the wagon to avoid damage.

However few instances of higher loadability of charcoal fuel has also been brought to notice. the value of the commodity also should be considered. as any high rate if fixed.The loading characteristics of “Charcoal fuel” may be seen as another example : (Ref : C.11. & liability in respect of claims : Certain goods get damaged easily during transit and Railway has to pay compensation claims e.2001) The Minimum Weight Condition prescribed for “Charcoal Fuel” is 115 Quintals when loaded in 4-wheeled wagon and 230 quintals when loaded in BCX/BCN wagons. In view of the above. In this context it is to be stated that the weight of charcoal fuel may vary and the same can be attributed to different types of wood used in obtaining “Charcoal Fuel”.III dt 15. While fixing the rate. certain other commodities like sand. 2. etc.. extra care is required in handling these commodities. Susceptibility for loss or damage.e. perishables. i. At the same time. The results of weight indicated the loadability as under : Average weight Minimum Weight Maximum weight : : : 196-2 quintals 162-6 quintals 226-0 quintals Even though the weighment results indicates that there is no scope for enhancing the existing MWC of 230 quintals in BCX/BCN/BCNA wagons it is not known whether these wagons were fully loaded without leaving space for further loading. staff should closely watch on the loadability of charcoal fuel and furnish the details as and when the need for revision of existing minimum weight conditions is noticed . iron. So. etc. will prevent the movement of the commodity. the carrying capacity of the wagons. fragile goods.g. it can be understood that the freight earning capacity of Charcoal fuel when loaded in BCX/BCN/BCNA is only 23 tonnes as against 55/55-8/56-0 tonnes. A rake consisting of 40 BCN wagons loaded with Charcoal fuel booked from TPGY to Palakata has been weighed in the electronic weighbridge at RPM. Thus the charcoal fuel should be charged at a reasonable rate to avoid loss of revenue to the railways. etc. can withstand the normal strain of handling without getting damaged in . lime..474/I/101/Vol. From the above case.

Silver.. e. if transported as piecemeal traffic in wagonloads. 3. etc. Hence higher rate of charge is justifiable in this case. Explosives. i.. are easily destroyed and may cause loss or damage to other goods also. Here too higher rate of charging is justified. Extent of empty running involved : Petroleum and other oil tank wagons have to run empty in one direction thus increasing the cost of operation for railways. whenever such occasion arises will also be higher than in case of less valuable articles. etc. Articles of high value such as Gold. acids. 4. Hence higher rate is charged in case of packing in glass containers. In certain cases the type of packing increases the susceptibility to damage. the railway may charge higher rates. The same commodity. And . move in large quantities to industries with less susceptibility to loss or damage. Transportation characteristics & other factors : a) Raw materials..e. has to be booked in several lots and involves more work. which are cheaper than the finished products.g. 5. Liability in respect of claims : In respect of valuable articles the amount payable towards claims compensation. 6. A commodity packed in glass container is susceptible to damage more easily than the same commodity packed in other stronger containers like porcelain containers..transit. according to the nature of packing. when it is transported in train loads. Volume of Traffic : A particular commodity involves less expense in respect of handling documentation. etc. And hence the empty movement has a bearing on the pricing. So commodities which are susceptible to damage have to be charged at higher rate than other commodities which are not so. transportation. etc. AT the same time finished products are susceptible to loss or damage requiring careful handling. Use of Special type of wagons : Whenever special types of equipments and wagons are provided. It is also considered as a factor that commodities in trainloads move more easily than the same commodities in wagonloads. So rates for trainloads are less than the rates for wagonloads for the same commodity.

As such many factors control the policy of rating and a judicial consideration is taken for fixing rates keeping in view that revenue results should be beneficial to the trade and the railways. This has to be encouraged even at the cost of internal movements.. rates for coal is always kept low. are charged at cheaper rates. method of packing and accommodation required. d) Cost of service differs even in the case of physically similar service according to busy and slack seasons of the year. e) Rate also varies with conditions that affect the cost of handling such as bulk. liquidity. explosiveness and structure. Only low rates should be levied on a commodity when it is vital for the life of a common man. And hence lower class rates may be quoted. b) Another important factor is the public interest. Effectiveness of ‘Value of Service’ and ‘Cost of Service’ principles: According to the ‘Cost of Service’ principle. c) Realising the importance of the utilisation of coal by many industries in different parts of the nation. Thus higher rates are charged on luxury articles while food grains. it’s bulk. etc. fragility. . various commodities are grouped under different classifications for the purpose of charging. Also such traffic is encouraged by providing special reduced “Station-to-station rates” than the normal class rates. etc. Railway rates and fares should be based on the cost incurred by the railways in providing the service. Hence lower rates for raw materials than those for finished products are quoted and this may be considered as an extension of ‘value of service’ principle too. industries may not work economically.further raw materials are being transported from distant places and unless lower rates are quoted. c) The cost of dealing with traffic also depends on as to how quickly it has to reach the destination. manures. d) Export traffic is a national interest. But it is very difficult to determine the exact cost of a unit of work done because of the following: a) Expenditure incurred in constructing different sections of railway tracks differ b) The cost of carriage differs according to the size of the consignment. Based on these factors.

bulky articles with less value would . the principle is defective.” it involves social. if the fares remain high. i) The exact cost of rendering the service cannot be calculated as the major portion of the expenditure is incurred for the traffic as a whole. It does not take into consideration the factors that influence the demand side. the supply side. but of equitable concession to the weaker members of the community”. Discriminating charges may be based on variations in demand. A rise in the railway rate of an article will lead to a rise of it’s price. charging of rates and fares on the cost of service principle is not possible. According to Acworth “it is a principle not of extortion. which may arise due to the differences in value. and will result in diminishing it’s consumption and the demand for transportation will also drop. people restrict their demand and traveling for pleasure atleast is affected to a greater extent. as Acworth pointed out. locality or persons. g) The rate is also influenced by consideration of the balance of traffic in both the directions. i. Besides the above difficulties the cost of service principle emphasizes only on aspect of the problem. and . The value of the commodity determines the ability to pay. economical and political considerations. the extent of empty running. in case of the passenger service. and each sociologist.. If their value would not be taken into consideration. and cannot be allocated to particular time of traffic. This implies that due to the element of joint costs. economist and politician would answer it differently”. The alterations in the price of Railway services affect the amount of traffic. The Value of Service Principle : The Value of service principle takes into cognizance the demand side. The solution of the problem lies in following the system of differential charging which is known as “Charging what the traffic will bear”.e. Similarly. to that extent. h) The cost of service also depends on whether the goods are carried at the Railway’s risk or the owner’s risk.f) Regular flow of traffic also influences the rates. the type of special stock required and extra trouble at receiving and delivering points. The fixation of the quitable share is not an easy job.

Flat charging : When charges are based on the above principle. Also the economic development of the country and the welfare of the people depend very largely on the proper rate structure. Part – I. Any commodity not classified in the Goods Tariff ordered for booking. it should be charged at the highest classification as . Hence a high degree of skill. foresight.not be transported at all. Tapering charges : The system implies that the charge per kilometer decreases as the distance increases. Classification of new commodities – Procedure : More than 8000 commodities have been classified in the IRCA Goods Tariff. Vol. the commodities are grouped into classes largely on the basis of their value. Discrimination due to difference in demand is also practiced with regard to the passenger services. It seeks to adjust rates between long and short distance traffic.D. On the long haul the cost of service is less because better utilization of railway plant is secured and terminal expenses are spread over a great distance. II. they are fixed inexact proportion to the distance traversed. Rick people have more capacity to pay than the poorer people. The system cannot be considered as fair because the cost of carriage does not increase in direct proportion to the distance covered. “A proper rates policy should provide maximum efficient and economic service to the community at a price which covers atleast the marginal cost of every unit and on the whole enables the railways to get their returns on their capital investment”. And hence in practice the determination of railway rates and fares is a very complex problem. the speed of train and other facilities required. Ability to pay is different in different individuals.Tiwari. Accordingly. It also takes into account the extent of passenger amenities and comforts required. courage and alertness are necessary on the part of the railway administration in pricing their services. In the words of R. This type of grouping enlarges commerce and helps in building up a large business for Railways.

which may be lower than the highest class.for unclassified goods. In South India.04. The nature of product. etc. long time is taken to fix a final classification. As the resources of E.1856 between Vyasarpadi and Walajah Road. and the classification of the commodities similar to the new one.1844. The Railway Board fixes and notifies the tentative classification. And the first train performed journey on 16. within 20 years after the opening of the first Railway in England. As the process is a time consuming one.07. The Zonal Railway in which the new commodity is offered for booking refers the matter to the Railway Board for fixing classification for charge. A guaranteed 5% dividend on the capital and free of cost land was offered. loadability. .07. loadability. The matter is referred to the Commercial Committee of IRCA who examines the issue and fixes the final classification for the commodity. British East India Company submitted proposals for the construction of a Railway in India. use in the society. they encouraged private companies in England to invest for the same. EVOLUTION OF INDIAN RAILWAY’S FARE STRUCTURE Historical background : In 1844.Company were not adequate to finance the construction of Railway lines. Then the matter may be referred to the Board to fix the final classification in consultation with the Commercial Committee. are given along with the recommended classification for Board’s considerations. In addition it was used for the movement of troops at times of war and for the movement of food grains t the famine affected areas. As per the present procedure. a distanceof 101 kms. is responsible for construction of more than 5000 miles of rail lines in India.. It was Lord Dulhousie who linked the principal cities of India with major ports.1853 with 14 carriages carrying400 guests from Boribunder to Thana of 33 kms. In case of new commodities offered for booking. the following are suggested.I. the CCM may be authorized to fix a tentative classification duly considering the price. The Construction of rail lines was on the patter best suited to serve the British commercial interest in the matter of moving raw materials for export to the manufacturing plants in cities like Manchester of Britain. the first line was opened on 18. Thus the Great Indian Peninsular Railway Company came into existence on 15. the price. which may affect the regular movement of the commodity when the price is not affordable as per the tentative classification. etc.

Rly 18 paise 9 paise 3 paise Madras Rly 18 paise 6 paise 2 paise To protect the interest of public against monopolistic exploitation by company railways. The rates of fares quoted on ‘per mile’ basis were as follows: Class First Second Third Forth G. By 1870.B. Most of .P 18 paise 9 paise 4 paise 2-5 paise E. Maximum limits for passenger fares were fixed by the Government from 1865 onwards.P Rly E.Rly E.I.I. there were three railway companies operating in India.I. Their separate fare structure for three classes of travel was as follows (Rate in pies per mile) : Class First Second Third G. from 5 pies per mile to 12 pies per mile in second class and from 2 pies per mile to 8 pies per mile in the third class for different railway companies.eleven railway companies were in operation and a new class of travel called ‘Forth Class’ or ‘Coolie class’ was introduced on some Railways.I.P 18 paise 6 paise 3 paise E.Rly O & R Rly G. Some of the railway companies were fixing unremunerative fares due to competition and they were guaranteed a minimum return of 5 %.I.By 1858 – 59.Rly 18 paise 9 paise 4-5 paise 3 paise O & R Rly 18 paise 9 paise 4-5 paise 3 paise Great Indian Peninsular Railway East Indian Railway East Bengal Railway Ovadh & Rohilkhand Railway During the period between 1891 – 1918 the then third class was redesigned as ‘Intermediate class’ in many railways and provided with bench for sitting and the forth class was renamed as third class and provided with bare open space in which the passenger can sit on the floor. The maximum limits varied from 18 paise per mile to 24 pies per mile in first class.B.

04. For instance. Air-conditioned class was introduced in important trains.5 paise Introduction of telescopic fare : During the First World War (1914 – 18).01.04. in 1928.5 7.49 01.the Railway companies reduced the fare within the range permitted in the new third class on account of limited capacity of the poor section to pay the charges. the Railway companies adopted the policy of discouraging passenger traffic by increasing the fares.04.01. for the first time a uniform basis of fares was adopted on entire Indian Railways. The Government. Revision of fare after Independence – Uniform fare structure: In 1947.48 01.1948. Mail and Ordinary trains were introduced and different fares charged on Inter class and Third class around 1939. Byut they were forced to change their attitude in the late twenties to make good the loss in the passenger revenue.49 01. telescopic fare was introduced to third class passengers for long distance travel.e. fixed the maximum and minimum limits within which the companies can fix the fare with prior approval of the Government as follows: Class First Second Third Forth Maximum (per mile) 18 paise 9 paise 4.f. all the different railways were nationalized.12. Class AC I II Inter – Mail Inter Ordy III Mail III Ordy From From From From 01. the Bombay Baroda Central Indian Railways reduced the fare by quarter paise per mile for the journeys beyond 150 miles. in 1891. W.51 36 36 30 30 30 24 24 27 16 16 14 16 9 9 9 10-5 7-5 7.5 paise 3 paise Minimum (per mile) 12 paise 6 paise 3 paise 1. The telescopic principle was given up and a flat charge irrespective of distance was adopted on ‘paise per mile’ basis. To induce the passenger traffic.5 9 5 5 5 6 4 4 4 5 .

62 +501 kms & above 10. Due to unhealthy competition among the railway companies.04.f.86 3.10 Third (M/E) 2.86 Second (M/E) 3.64 Up to 80 kms +251 –500 kms 11.5 First 5.40 2.92 1.e.1960 metric system of charging was introduced.76 1. The system was continued till 1948 when the telescopic principle was given up and flat rate per kilometer irrespective of distance was adopted for the entire Indian Railways.04 Third (Ordy) 1. .36 4.08 2.71 Third (Ordy) – 1.Introduction of Metric system : w.58 Second (Ordy) 3.95 1.600 kms (per Km) 24 12 7 6 4 3 100 48 28 24 16 12 82 38 22 18 12 10 150 60 36 32 17 16 Taper or telescopic rating principle : Initially the basis of fare was a flat rate per mile irrespective of the distance traveled. they started to charge a lower rate of fare with increase in the distance traveled.18 3. +601.62 1.46 - Revision of fare structure in 1970 – 71: The above fare system from 1960 was subjected to increase up to 1968 and a revised fare structure was introduced during 1970 – 71 as follows (The rates per passenger were given in ‘pies per km’.5 5.1600 kms (per Km) Above 1601 kms (per Km) Class Air-conditioned First Second (M/E) Second (Ordy) Third (M/E) Third (Ordy) 1. In April 1955 the telescopic principle was reintroduced and it has now become an integral feature of fare system. 01. The rate was given in ‘pies per km’ as follows : Class 1 – 250 kms Air-conditioned 11.100 kms (per Km) +101.

Sleeper Class and De-reserved sleeper class : To meet with the ever-increasing demand for the reserved accommodation by trains and to provide value added services to the rail users. PAGE 60 – 66 TO BE TYPED FEATURES OF THE PRESENT FARE STRUCTURE 1) Introduction of AC – III tier. ie. From 01. 1 to 100 kms. The telescopic principle was reintroduced w. The . the sleeper surcharge was withdrawn for passengers traveling beyond 500 miles and reintroduced in 1968. four distance slabs were provided with taper. SL class is introduced as a higher class than II – class with 25% higher fare than II – class. the basis of taper got hidden. which has now become an integral feature of our fare and freight system. After 1970. 1 to 250 kms. +601 kms to 1600 kms and above 1600 kms.04. Due to adhoc increases made year by year. +251 to 500 kms and above 500 kms.55. the I-class was abolished and the then second and inter classes were redesignated as First and Second respectively.e. Hence during 1970. In 1959.3/.04.per berth per night was levied..f.55. Introduction of sleeping facilities in third class : Sleeping accommodation in the third class (present second class) was introduced in 1954 and a charge of Rs. +101 kms to 600 kms. The special features of these classes are as follows : Sleeper Class : It is a fully reserved class introduced from 01/04/1993. i. These coaches have three tier wooden berths. The then Second class compartment with two tier and three tier sleeping facilities were abolished by introducing the composite SL class. AC – III tier and Sleeper class compartments were introduced in nineties.01.e. three distance slabs were provided with taper.During 1960.. the fare structure for all clases got distorted due to adhoc increases made every year. The two tiers sleeping cum sitting system in third class was introduced in 1956.

AC – III tier class : To meet the expectations of upper middle class passengers of the country. 6. DESERVED SLEEPER CLASS : 1. 4 Stations between Kanniyakumari to Ernakulam Kanniya Kumari to Palghat Nagercoil to Ernakulam . AC – III tier class is procided to facilitate passengers to avail sleeping facility in long distance trains.200 kms for such passengers. While AC Chair car is provided in the day express trains. 3. 2. by paying the reservation charges for II – class. Rs.15/. the Railways are now able to move more number of passengers. The minimum chargeable distance for Sleeper class is fixed as 200 kms to discourage short distance passengers cornering the accommodation mainly intended for long distance passengers.sleeper surcharge levied for the passengers provided with sleeping facility was included in the fare for SL class. S – 5. Coimbatore – Palghat – Kanniyakumari and Palghat – Mangalore sections DESERVED SLEEPER CLASS COACHES IN SOUTHERN RAILWAY (Ref: Annexure – IV to C. 16/03/1999) Train No. 7. Sleeper class fares shall be charged without applying the minimum distance for charge. passengers intended for short distance destinations are permitted to travel in such accommodation over notified sections. 1082 Exps 6525 Exps.9. Also by introducing this class. ie. Passengers with dereserved Sleeper class tickets can also travel in reserved Sleeper clas during day time against vacancies if any. the Railways are now able to move more number of passengers. To this effect.268/I/1999 do. as the capacitlso by introducing this class. Zonal Railways have declared certain sleeper class coaches as “Unreserved” in specified trains. 10 S – 3. 8 S .. To avoid Sleeper class accommodation going vacant for short distances where the accommodation is earmarked as “wayside station quota” in the long distance trains. 4.per passenger over the following sections. ie. this air-conditioned class was introduced as a higher class to AC Chair car. Sleeper Coach No. as the capacity of this class is higher than First class and AC-II Tier coaches..

4. 1. The Railways will separately notify the identified trains. Any fraction in fare will be rounded off to the next higher multiple of Rs. 3. stoppages. 01/04/2002 It is an index fixed by the Railways considering the following costs : . The basic fare will be charged at 10% higher than the Mail/Exps. Super fast surcharge. 6 4. etc. Timings.f.77 & 88 of 2001 dt. 4. These trains will run at a higher speed than super fast trains (Average speed may be more than 60 kmph) and the stoppages will be limited. circular No. Fare notified in the fare table. 4.06/11/01 & 13/12/2001 1. their routes. 5. 7. 6 4. 7. Safety Surcharge and Reservation Fee if applicable will be separately levied. Railway Passes/PTOs and IRCA concessions will be permitted as in the case of normal trains. 6 S S S S S S S S – – – – – – – – 7 2. 9 2 5 5 5 Nagercoil to Palghat Trivandrum Central to Quilon Trivandrum Central to Mavelikara Trivandrum Central to Ernakulam Trivandrum Central to Kottayam Cannanore to Mangalore Kottayam to Trivandrum Central Alleppey to Palghat Alleppey to Perambur Calicut to Cannanore Cannanore to Calicut Erode to Chennai Central Chennai Central to Salem Mysore to Bangalore Hospet to Hubli PREMUM HOLIDAY SPECIAL TRAINS : (Ref : TCII/2910/2001/Premium Holiday Spls. Premium Holiday Special Trains are introduced from winter season of 2001 – 2002 2.6320 Mail S S S S –6 –3 –4 -6 6329 Exp 6330 Exp 6042 8690 6347 6348 6628 6627 6232 6592 Exps Exps Exps Exps Exps Exps Exps Exps S–6 S – 2. under this scheme. Relative Index of Passenger Fares w. – Comml.e. 6.5/6. 3 S – 5.

01/04/2002. To mobilize fund.e.04/2002 100 (Base Class) 160 525 100 (Base Class) 160 350 450 525 720 1400 W.01/04/1999 100 (Base Class) 155 525 100 (Base Class) 155 300 450 525 720 1440 Second Class – Ordinary Sleeper Class – Ordinary First Class – Ordinary Second Class – Mail/Express Sleeper Class – Mail/Express Air-conditioned Chair Car Air-conditioned 3-tier Sleeper First Class – Mail/Express Air-conditioned 2-tier Sleeper Air-conditioned First Class Note: w. it has been decided to levy a safety surcharge on passenger fares as follows: (1) A flat amount is levied per passenger (Adult/Child) depending on the distance and the class of travel as follows: Class of travel Up to 500 kms.50 OF 2001 for Rate Advice No.28/09/2001 – Chg.a) b) c) Unit cost per 4 – wheeled coaching stock. etc. And these fares are taken as base class to fix fares for other classes.f 01.01/10/2001) (C. SAFETY SURCHARGE ON PASSENGER FARES (W.f. Fares beyond 100 kms. SINGLE JOURNEY TICKETS . Bridges.9/2001) A Special Railway Safety Fund (SRSF) has been set up to wipe out the arrears of replacement of over aged Railway Assets like Rolling Stock.  There is a reduction in I – AC class fare index to make the fare eqauivalent or less than the air charges.e.E. POH cost per Coach Approximate Maintenance and Repair Man hour per Coach CLASS INDEX w. No.F. II-class Ordy. Distance Above 500 kms. Track.E.F. Fare structure has been rationalized and fixed at 55% of II-Exp.268/I/2001/SS dt.

Chair Car Sleeper l Class II. (7) It is levied only once on tickets involving break journey. – I Class & Executive Class A.C.20/Rs.20/Rs.2Re. (8) It is levied as for two single journeys for Circular JourneyTickets.2Re.30/Rs. – II Tier First Class A.Class (Ordy. (5) But it will not be levied on the Free MSTs issued to the students (Boy students upto 10th Std.60/Rs.15/-) issued to the people of unrecognized sectors. Market Vendor S.50/Rs. (12) But it should be collected in cash in case of RTCs issued to the Press Correspondents and News Cameramen. (10) It is levied in full and collected in cash in case of Military Concession vouchers where part of the fare is realized in cash. – III Tier A.) (6) It is levied only once for the entire distance for the highest class/train of travel on combined tickets.30/- Rs.1Not Applicable Not Applicable (2) It is levied for journeys by all trains including Rajdhani and Shatabdhi Express. (9) It is levied and debited to the concerned departments in case of Defence\Police warrants where the full fare is accounted as voucher.80/Rs.40/Rs. (13) It is levied again in full in case of extension of journey treating the same as fresh journey.40/Rs.10/Rs. (3) It is levied in full on concession tickets.C. Separate Safety Surcharge Coupon booklets will be printed and sold for validating before commencement of journey.) II.T. .s and on the Low Value monthly Season Tickets (Rs.40/Rs.A. and Girl Students upto 12th Std.C.Class (main/Exp.1/SEASON TICKETS Rs.100/Rs. (4) It is levied at the prescribed rates for the single journey of the class of travel in case of Coupon for Coupon Validating Machines.20/Rs.10/Rs. (11) It can be collected through RTC in case of RTCs issued to MLAs\MLCs.C.60/Rs.) I – Class Monthly Quarterly II – Class Monthly Quarterly Rs.20/Rs. tickets issued on different types of Warrants/vouchers.

(17) The cancellation fee will be calculated on the entire amount including safety surcharge. the Railways are the best means of transport. (22) The amount collected towards Safety should be shown separately in the Coaching Balance sheet and necessary returns also to be submitted.(14) The difference in safety surcharge should be collected in case of change of lower class ticket to higher class. As a large number of people have to be transported in a limited time. (15) The difference in safety surcharge should be collected/refunded in case of change of route (i. (20) The Safety Surcharge need not be separately shown in the tickets. (19) Safety Surcharge is not refundable in case of partially used ticket. About 3 billion suburban passengers in Mumbai. 10-day period basis. RTSAs. (16) For the purpose of refund of fare on cancellation of Unreserved/Reserved tickets. Kolkatta and Chennai account for over 60% of the total passenger traffic in 1996 – 97. (24) All kinds of passes including RCP and PTOs issued to Railway employees are exempted from payment of safety surcharge. SEASON TICKET FARE STRUCTURE Necessity of Season Ticket: Housing and employment have become increasingly separated ad therefore people have to travel to their work spot daily and often a long journey. longer or shorter route) as the case may be..e. (18) Difference of safety surcharge is refundable if the higher – class ticket holder is made to Travel in lower class for want of accommodation. The Season Ticket is a traditional method of daily travel to and from work place and provides a practical alternate to purchase tickets by the large numbers of passengers involved. Monthly basis an Yearly basis in DTC summary. (21) Separate accountal of safety surcharge collected class-wise should be maintained on Daily basis. Season Tickets are priced at reduced rates even tho0ugh they produce lower revenue at greater burden. etc. (23) Wherever the sale of tickets or arrangements of reservation is done through different Types of agents (Halt agent. It is not possible for the roadways to carry such volume of traffic within a short time. . the Safety Surcharge will be treated as part of the “Fare”.) the safety surcharge will not be included for the purpose of calculation of commission payable to them.

The monthly ST fares were equated to 13 to 6 single journey fares on reduced basis for different distances.217 crores because of the highly concessional season tickets over non-suburban sections due to the too low fares.Together they account of loss of Rs.Class ST fare should be four times of II. However the question of concession becomes very high and it becomes a cause of heavy revenue loss to the Railways. Advantages to Railways in issuing season Tickets:  The public pay the fare in advance.Class ST fare . of single journey fares equated to ST fare In England In India 32 11 31 11 19 9 13 7 11 6 Recommendations of Rail Tariff Enquiry Committee: The Rail Tariff Enquiry Committee in it’s interim report in 1978 has recommended the following: a) b) c) d) ST fares are too low and deserves to be increased The distance limit for non-suburban ST to be increased to 150 kms. modified the Same to 2. helps in reducing the documentation work and also reduces the need for manpower to issue tickets daily.T. It was only 0-82 paise against the average cost of 2-14 paise during 1979. The comparison of ST fares in India with England is given below: Distance in kms. 5 20 50 110 150 No.5 times and subsequently to 2. No difference in fares between suburban and non-suburban STs Quarterly ST to be charged at 3 times the Monthly ST fare (But the Govt.7 times) e) Same fare for each distance slab to be quoted f) I. Considering the above benefits. avoiding issue of tickets every day. The unit revenue from Season Ticket is far less than the cost of operation.  This helps to save space in booking office for the storage of tickets. the Railways offer a reduced fare structure for season tickets. thus provides a guaranteed traffic.  Issue of S.

Normally a Monthly ST holder performs about 50 single journeys and a uniform concession of not more than 50% at the maximum could be justified. Allowing a maximum concession of 50% in the average number of journeys (25 days X 2 =50 single journeys) made on a monthly season ticket. Rationalisaion of season tickets fare suggested by RTEC: 1) The season ticket fare should be based on an appropriate number of single journey fares. while rationalising the fare structure. to 10 single journeys at 101 kms. 2) This link will help the Railways to.5/ Various types of STs: . This means the ST fare should be equal to the fare for 25 single journeys at all distances. 4) The performance of journey during peak periods under the serve over-crowding should be considered to justify more concession. the committee suggested to fix the rate for monthly season ticket at 25 single journey rates. the rates for season tickets also revised as under: The monthly season ticket is charges for 15 single journey fares (II – Ordy. This may be reduced progressively as the distance increases. During 2002 – ’03. 3) The concession allowed on season ticket should reflect in the Railways’ cost savings due to bulk purchase. 5) A suitable tapering in the ‘per kilometer rate’ with increase in distance should be provided to reduce the continuous loss arising from season ticket travel.  establish a rational relationship between the charges paid by an occasional traveler and a regular commuter  provide a mechanism for automatic increase in season ticket fares with increase in single journey fares. But the government has not accepted the recommendation and he monthly season ticket was charged for 9 to 16 single journeys at various distance levels. fare)  Any fraction in the concessional and child season ticket fare is rounded off to the next higher multiple of Rs.

Boys–upto10th Std .) 100% FREE (Only MST) 50% of Adult S.p. .m. PASSENGER General Public Students . Students Season Ticket: -Only For Adult -- 110 150 100 I/II II II-Ordy 1) Students of recognized educational institutions (the education leads to certificate or diploma or degree examination of the Education Board or University in the State) are eligible for concessional Season Tickets. fare Rs.T.T. fare 25% of Adult S. labourers etc.T. fare 150% of Adult S.15/(Only MST) AGE -Not DISTANCE More LIMIT Than (Kms) Years -150 -150 25 27 150 150 CLASS I/II II-_Ordy I/II I/II Railway Employees Market Vendor Season Ticket Unorganised sector (domestic helpers.) with Income less than Rs.T.400/.Girls-upto 12th Std Students – General Stiudent – SC/ST FARE (Rs. Fare 50% of Students S.Various types of season tickets are being issued by the Railways as follows as a part of their social obligations despite the heavy revenue loss incurred by them.

the student must sign the part foil in ink. The age at the time of purchasing the season ticket should be taken into account. 4) Monthly/Quarterly ST will be issued as mentioned in the concession order.2) They should produce the party foil of the4 concession order issued by the Head of the Institution.per month and who are provided with free or concessional boarding or lodging facility.539/P/Vol.f. Half of the adult ST fare will be charged without applying any minimum charge. 1999). the caste may be certified by the head of the institution in the same form or the caste certificate issued by the revenue authorities may also be accepted.1020/. 7 dt.1020/. to students (Ref. .per month (w. The certificate forms may be issued in favour of more than one student providing the issuing station is one and the same and all the students in whose favour the concessional certificate is issued present themselves simultaneously on the same date for the purchase of season tickets. (Note: The concessions admissible to the professional trainees are withdrawn from October 2001 onwards) Concessional S. 3) The concesio0n order is valid for 14 days from the date of issue. 10) Alterations/erasures in the form should be avoided.11 of TRC No. 8) In case of SC/ST students. Rs. 11) The student has to sign at station and after verification of signature with the signature in the form.11 of 1989) 6) Though the concession form is prepared in duplicate under carbon process. “Millenium Gift from Railways”.170/III/Viol.T.XI/DUP/88-89 – Item No. 5) The age of the student at the time of purchasing the season ticket by should be taken into account (Ref: C. The QST will be charged 2-7 times of the SC/ST student’s MST fare) 9) Child student is not eligible for concession. 15/06/1994): The concession is not admissible for part-time students and who are in receipt of wage/salary/stipend exceeding Rs. (The SC/ST student MST will be charged 50% of the normal student MT fare. 7) The concession form can be exchanged only at the ‘serving station’ selected by the institution. April.e. 12) Professional trainees such as articled clerks can be issued concessional season ticket only when their stipend I not exceeding. the ST will be issued.C.

sex. The certificate can be issued by MP/MLA to the people of his own constituency. etc. 3. age. The caption “Millenium Gift from Railways” should be written in the free MST. No free Quarterly Season Ticket should be issued in these cases. and valid for travel by Ordinary trains only. and Girl students studying up to 12th St. as a millennium gift from Railways. monthly income in words & signature or thumb impression of the person. 3) Also an income certificate issued by the Govt. 4) Any other certificate issued under a recognized scheme of poverty alleviation can also be accepted. Revenue official should be produced. 11) No alteration in the form is permitted. Agricultural labourers. which should be produced on demand during travel.should be separately levied. name of employer. Boy students studying up to 10th Std. 10) The certificate should be signed by the authority mentioning his name and date of issue. Also it should have the office seal of the issuing authority. 4. The caption “Millenium Gift from Railways” should be written in the LVMST. Such free II – class MST’s are issued for maximum distance of 150 kms.15/. Vegetable vendors. which is valid for three months from the date of issue. 1) . on Production of Xerox copy of certificate issued by an MP/MLA/BDO/District Magistrate. 5) The LVMST is valid for travel by Ordinary trains onl76y. are Eligible for free MST on production of the concession order. 12) Safety surcharge of Rs. No Quarterly Season Ticket can be issued. name and address.1. work particulars. 6) The ST should be issued on verification of the original certificate.400/2) II –class MST is issued for a maximum distance of 100 kms. 8) The certificate may be in the prescribed serially numbered form supplied by the Railways free of cost to the issuing authorities or in the form prepared by the authorities themselves.15/-. 9) The certificate should have the details of the person like. Construction Workers. 2.) whose monthly income is less than Rs. 7) The ST is valid only along with the original certificate. Low Value Monthly Season Ticket: It is a millennium gift from Railways to the People of unorganised section (Domestic Helpers. at the cost of Rs.

Vol. The Railway Convention Committee in 1973 recommended that such concessions might continue as social burden. Railways abroad generally allow concessions on social grounds to the blind. 4.Market Vendor Season Ticket: 1. since they were availed from the time immemorial. 2. Cheese. The High Power committee set up by the Railway Board in 1973 suggested that all concessions should be abolished. 2. I the return journey. It is issued only at notified stations. Employees’ Season Ticket: 1. It is issued on production of a certificate issued by the Railway. – II. Is permitted to carry marketable produce such as. at the rate of 25% of general public S. EVOLUTION OF LUGGAGE & PARCEL RATES . 3. only empty cans/baskets. Indian Railways introduced concessions date back to a period when they wanted to attract passenger traffic. the concerned departments such as Social Welfare.fare. Labour. Sport.T. at the rate of 150% of public season ticket fare. Newspapers and other bazaar supplies during outward journey. Concessions in passenger fares are allowed in Indian Railways very liberally to various categories of public. are permitted. the Government retained all the concessions. Railway employees are eligible for this S. Agriculture. Khoa (Dried Milk). If concessions are necessary on broader socio-economic considerations. physically handicapped and elderly citizens. Some railways give limited concessions to students and circus parties. Education. In the present situation when there is overcrowding and the railways are not able to meet the passengers’ requirements continuance of enormous concessions seems to be abnormal. etc. But the railways should be reimbursed the cost thereof. Fresh fruits. should grant the concession. These are listed in IRCA Coaching Tariff. Vegetables. MVST is issued in II class only for a maximum distance of 150 kms. 3.T. A luggage free allowance of 60 kgs. at notified sections to attend office or workshop from their residence. etc. CONCESSION IN PASSENGER FARES. However. Part – I. It is issued for a maximum distance of 110 kms. Milk.

Besides special rates were quoted for Betel Leave.While Goods and animals were mostly carried by goods trains. 4. a small proportion of his traffic is carried in passenger carrying trains or by parcel trains. Khadi and Milk were charged at 50% of the Full Parcel rate and Seeds and Seedlings at 25% of Full Parcel rate known as Half Parcel rate and Quarter Parcel rate. From 01/01/1948.e. Full Rate Half Parcel Rate Quarter Parcel Rate Betel Leaves Re. .1/8 annas 8 annas 12 annas In 1958. as recommended by the Railway Freight structure Enquiry Committee. since parcel service provides a comparatively faster movement. full parcel rate for general parcels was linked to class 100 – B in Goods Tariff and fixed as under: Full Parcel Rate 300% of 100 290% 0f 100 280% of 100 B class up to 300 miles B class from 301 to 400 miles B class above 400 miles Books. The basic rate structure up to 1948 was not uniform and they were fixed with small increase than the goods rates. when goods freight structure was rationalized. 2. since goods rates. the parcel rate structure was also rationalised. The rates were based on telescopic basis for the mileage carried with the addition of a separate terminal charge. 3. 01/01/1948: 1. Vegetables. The parcel rates are higher than the corresponding goods rates. For General traffic Distance (In miles) 1 to 100 101 to 200 201 to 700 Above 700 Rate per maund per mile 4 paise + 3 paise + 2 paise +1-5 paise Taper % 100 75 50 37-5 For Handloom Products Rate per maund per mile 3 paise + 2 paise +1-5 paise + 1 paise Taper % 100 66-66 50 33-33 Minimum Charge for parcel traffic w. Handloom products and Newspapers.f.

From 01/4/1969. A new parcel freight structure was brought into force by introducing 8 scales and linked to class 100 for goods traffic. With effect from 01/4/84. prepayment of freight was made compulsory for all parcels up to 500 kms. During 1980. the luggage rte was fixed 10% hu8gher than the Full Parcel rate. of Scale rates available 5 6 10 13 Like in the goods traffic. A maximum of five or six scale will be sufficient if the ‘value of service’ and ‘cost of service’ principles are properly adopted. Vide the interim report submitted by the Rail Tariff Enquiry Committee in 1979. the relativity between goods and parcels was disturbed. as recommended by the Rail Tariff Enquiry Committee. a separate rate for Luggage traffic and 5 scale for parcel traffic were introduced. From 01/4/1964. the metric system of weights and measures was adopted ad the parcel rates were revised accordingly. the difference in transportation characteristic and value of articles booked s parcels and luggage cannot justify so many scales for charge.Scale‘CP-1’ Concessional Parcel Scale – 2 – Scale ‘CP-2’ Concessional Parcel Scale – 3 – Scale ‘CP-3’ Percentage of rate 110 100 80 50 40 . As such the Committee suggested only six scales of charge as follows:  One of these scales should be treated as base class and equated to 100 and the other class rates should be fixed on the percentage relationship indicated below: Description and scale Luggage – Scale ‘L’ General Parcel Scale – Scale ‘CP – A’ Concessional Parcel Scale – 1 .From 01/4/1960. parcel rates ere rationalized taking into consideration the revenue loss in the parcel and luggage traffic. Luggage was charges at Full Parcel rate. Siding scales according to economic value: The number of scales in which the parcels and luggage were divided for the purpose of charging over the period are as follows: Year 1948 1958 1970 1978 No.

reliable and safe service for which they were willing to pay additional charges. The present scales of rate. Explosives and dangerous goods considering their conditions for transport and high value. Cardamom.Newspaper & Magazine – Scale ‘NM’ Scale ‘GP – A’ was treated as base class..R. the parcel and luggage traffic carried by Express. The rate structure was made on the basis of distance. As the distance increases. Scale.f. Essence oils. And hence. Special The rate for a consignment of lower value was fixed relatively lesser than that for a consignment of higher value. --------Mail/Exp. the telescopic rates were proposed to attract long distance of traffic. train surcharges and commodity surcharges are as follows: Minimum weight for charge. Minimum charge & Risk Rate: Commodity Scale Risk Rate Alternative R. Super fast trains and by Rajdhani/Shatabdi express trains were levied with additional charges called ’Surcharge. the rate per km. Sliding scales according to quality of service: Though parcel traffic was carried by passenger carrying trains to provide faster service.’ The surcharge was levied w. Cinema films. was reduced. The reduction in rates viz.e. Rate Minimum Weight For Charge per Minimum charge . 01/10/1984 and the Scale ‘CP – 3’ was eliminated. minimum charge. Scale Luggage GP – A CP – 1 Peishables Non-perishables CP – 2 Perishables Non-perishables NM Ordy. the trade and industries required still faster. --20% --20% --Super fast 10% 5% 20% 5% 30% 30% 30% 20% Rajdhani/Shatabdi 25% 5% GPA + 5% GPA + 5% GPA + 5% GPA + 5% GPA + 5% 29% Commodity surcharge was also levied on Examination Answer books.

stories.30/- GPS R.P. Rs. O. etc. Egg. Anar. Tariff & Timetable Text book.P.5 kgs.R. Cut flower. he minimum weight condition prescribed for that commodity in IRCA Goods Tariff.3/-  If a commodity is booked as parcel in full wagon load. GPS GPS GPS Package 5 kgs. etc. Rs. Rs.R. (4.  Registered Newspapers & Magazines when sent from the office of issue to the agents or from gents to sub-agents and unsold copies . (For Milk CPS rate Minus 10%) O.Expensive fruits (Fresh) viz. articles.R. -1 C. Live.Treasure box – empty Ice. Fish – Fresh. Unregistered Newspapers & Magazines Rly.Vol. 5 kgs.R.. Apple. – 2 C. GPS GPS 5 kgs..2/Rs.S. other current topics with or without advertisements and published in numbers daily and has a bona fide l8ist of subscribers. Vegetables Betel leaves Curd. having a bon fide list of subscribers and containing news and views.Govt. Super fast or Rajdhani/Shatabdi trains. For Grapes) 10 kgs. O. Part – I. Cherries Fruits (Fresh) other than Expensive fruits.  Registered magazine means that a publication published regularly at a fixed intervals under the same title. O.CP –2 & CPS Registered Newspapers Registered Magazines C.R. Nil 10 kgs.30/Rs. All other commodities not Classified under CP – 1. by not less than three writers.Dried.  Registered newspaper means that a publication consisting of political or other news.. 10 kgs. Fruits -Dried. Salted Ghee.  The minimum charge is inclusive of freight charge and surcharge levied if any.30/- NM NM O. – II is applicable for charging.P.R.20/Rs. when the parcel is carried by Exp.

488/P/Vol. SCALE LUGGAGE G. VIII dt. 488/P/Vol. 16/10/1992. Nil (Chg. C. The list of Uneconomical Branch lines over Southern Railway Ref.P.P.M. 10/9).XI dt.S C. Fruits. vegetables and betel leaves booked in Brake vans of branch line passenger train from one station of the branch line section to another station on the same branch line located within the section. The minimum charge for parcel traffic carried by Ordinary trains within uneconomical branch line limits between a junction station and the dead end is Rs.S.e.f.returned by the agents to their head office are charged at Scale “NM”. Surcharge to be levied on parcel traffic when carried by Exp/Super fast/Rajdhani or Shadabdi trains. are chargeable at C. Scale on all gauge.S C. C. at the dead end and the junction station (including) at the other end.P. 1) 2) 3) 4) 5) 6) 7) 8) Talaguppa – Birur Chamarajanagar – Mysore Marikuppam – Bangarapet Nilampur Road – Shoranur Tiruhendue – Tirunrlveli Bodinayakanur – Madurai Nagore – Tiruvarur Pondicherry – Villupuram  Small animals and birds are charged with a minimum charge of Rs.P. No.10/w.P.  The minimum chargeable weight for “Treasure” is 40 kgs. all parcel traffic except fruits.30/.  Vide No. 40% 40% GPS + 40% GPS + 40% GPS + 40% 30% . – 2 N. 1-8-1996. Vegetables and Betel leaves should be continued to be charged at the rats existing prior to 1-8-1996. – 1 C.per Animal/bird at Scale “L”. MAIL/EXP NIL NIL NIL 20% 20%` NIL SUPER FAST TRAINS 12% 12% 12% (Except Betel leaves) 20% 30% 30% RAJDHANI/ SHANDABDI EXP.

Any other surcharges to carry the consignment by Super fast /Rajdhani/Shadabdi trains. Motia oil. ‘Public Carrier’ is one who holds out as willing to carry for all persons and who carries without any special contract. Camphor Oil. will be levied over and above the surcharge leviable by Ordinary trains. Jawa oil. Private Carrier 2. Kesar. Musk oil. Public Carrier 3. Rosa oil. each surcharge shall be calculated on the basic rate only and not on top of another. Sandalwood oil) Cinema films Dangerous goods SCALE GPS GPS GPS SURCHARGE 50% 60% 80%  The above surcharge will be levied on the basic freight and not on the minimum freight. Titanium. etc. COMMODITY Examination Answer books Cardomom.  When more than on surcharge has to be levied. Peppermint oil. Clove oil. Common Carrier ‘Private Carrier’ is one who choose customers or make his own contract to carry or not as he seems fit.  Dangerous goods can be booked and carried by Ordinary trains only. REPONSIBILITY OF RAILWAYS AS COMMON CRRIER “Carrier” is a person who takes upon himself to carry goods or passengers from one place to another.Surcharge to be levied on parcels of special nature to be carried Ordinary trains: by The basic rates for charge for some of the commodities are increased by adding a surcharge wit their sales for charge as follows eve to carry by Ordinary trans. The carriers are of here categories as follow: 1. . Essence oil (Almond oil.

the Common Carrier is liable as an insurer and cannot limit his liabilities. 152 and 161 of the Indian Contract Act. The first legislation was enacted vide Indian Railways Act. In 1890. the bailee is not liable for loss or damage. Different standards of liability were fixed for three periods during which the goods are in the possession of Railways as follows: 1) 2) During Transit: Absolute liability as a carrier subject to certain exceptions For a period of 7 dys after termination of transit: Liable as a Bailee. 1854. . as a man of ordinary prudence under similar circumstances would take of his own goods of the same bulk and value of the goods bailed. The responsibility as a warehouse man continues which is also that of a bailee till the goods are delivered or otherwise disposed of by public auction under Sec. a Railway Company was liable for loss or injury caused by gross negligence or misconduct on the part of their servants or agents. Introduction of Common Carrier Liability w. 55 and 56 of Indian Railways Act.e. 1890 (Sec. damage. Under Section 152 of the Contact Act.f. Risk Notes are in the nature of exceptions to the ordinary responsibility for loss. which may occur inspite of bailee’s reasonable care. A ‘Bailee’ is bound to take s much care of goods bailed to him. The responsibility of Railways a carrier of goods underwent a see changes. 93 & 94 of Railways Act. etc. This was imposed on him by custom for the benefit of the public. Under section 11 of this act. 1989).‘Common Carrier’ is one who is bound to carry for all persons who choose to employ him for hire and carry goods of any one who offers. While the Public carrier is bound to carry within a reasonable time and to ensure safety of goods during carriage. Indian Railways Act was passed restricting the responsibility of Railways as a bailee under Sections 151. 01/01/1962: The liability of Railways underwent a drastic change from 01/01/1962 by the amendment of the Indian Railways Act 1961. subject to Risk Notes limiting the Railways responsibility. 1872.

Act of Public Enemies IV. nondelivery. (a) Packing of goods is sound and (b) The goods are charged at “R. COMMON CARRIER LIABILITY 9Sec. they are liable to pay compensation to the owner for any loss. Act of God II. 1989 deals with the responsibility of Railway as a carrier. RAILWAY’S LIABILITY DURING TRAANSIT: Section 93 of Railways Act. damage. Quality or vice of goods VIII. non-delivery of goods due to any cause except when the damage/loss is caused by any of the following reasons: I. Latent defects . that takes place during transit.. 1890. 1989) 1) With effect from 1/1/1962. Railways is responsible for the loss. restraint or seizure by legal process VI. Act of War III. when the following conditions are fulfilled. In case of perishables. Natural deterioration or wastage in bulk or lose in weight due to inherent defect. Restriction by Central/State Government VII. Act of omission or negligence by the Consignor/Consignee or their agents V. the Railway’s responsibility ceases the termination of transit. the new Railways Act enacted in 1989 has linked the monetary liability to legal liability and certain provisions were made customer oriented. Arrest. 3) When the Railways fail to deliver the goods a above.R.3) After 7 days after the termination of transit: No liability. Explosives and such Dangerous Goods as may be prescribed. Railways as “Common Carrier of goods” have assumed the Common Carrier Liability. Animals. etc. damage.” rate 2) As a common carrier. the Railways should deliver the goods to the consignee in the same condition as accepted at the time of booking. While retaining almost all the provisions of IRA. 93 of Railways Act. 4) As per Section 93 of Railways Act 1989.

railways have no responsibility even that of a bailee in the following cases: (a) (b) (c) (d) Animals Perishables Dangerous goods Goods of which PCEV charges has been paid 11) 12) 13) . Parcel & Luggage traffic) 9) 10) Railways responsibility as common carried ceases by the time Termination of transit. After termination of transit. damage. WHEN ON COMPLETION OF No demurrage charges Wharfage free time incurred Demurrage charges Demurrage free time incurred Consignments are not to Wharfage free time be Unloaded by the Owner (e. to claim immunity from their liability. After termination of transit. damage. and up to 7 days.g. The Bailee is not responsible for loss or damage on non-delivery of goods provided he has taken due care of goods as mentioned above. Railway is not responsible for any loss. Termination of Transit: 7) The transit commences when the Railway Receipt is issued to the owner or when the Goods are loaded in the wagon in full by the consignor whichever is earlier. 6) Railways have assumed the common carrier liability only when the goods are in transit. etc. Railways have to prove that they have used reasonable foresight and care to prevent the goods from loss. explosion or any other unforeseen risk 5) Even in the above cases. quantity and value under similar circumstances. etc. 8) The transit is considered as terminated. Fire. After 7 day from termination of transit.IX. Railways are responsible only as a “Bailee”(A Bailee is an ordinary prudent man who would take care of the goods entrusted to him as his own goods of the same bulk.

Goods to be loaded or delivered at a siding not belonging to a Railway Admn.102) Section 94 – Goods to be loaded or delivered at a Siding: When goods are to be loaded at a siding not belonging to Railways. Goods in defective condition or defectively packed (Sec. Delay or detention in transit (Sec. damage.97) 5. Responsibility as carrier of luggage (Se. For example. earthquake.  “Act of public enemies” generally means the act of enemy soldiers during war. etc. which is not visible as such.99) 7. deterioration.e. fruits rotting during transit due to defect in the fruit itself or animals getting injured by attacking each other during transit. Traffic passing over India and Railways in foreign countries (Sec. etc.100) 8.95) 3. Goods carried at Owner’s Risk Rate (Se. Exemption from liability in certain cases (Sec. EXCEPTIONS TO THE GENERAL RESPONSIBILITY The Railways as exempted from the Common Carrier Liability under the following circumstances: 1.98) 6. until the wagon containing the goods has been placed at the point of interchange and the siding owner uniform the Railways accordingly in writing. deterioration. Responsibility after Termination of Transit (Sec.101) 9.Note:  “Act of God” means natural calamities like flood.96) 4. Responsibility as carrier of Animals (Sec. lightening. but it may also apply to the rebels/extremists fighting against the government under the order of rebel government. i. etc. heavy storm. but may cause deterioration of goods during transit.  “Internet vice” means the defect in nature of goods itself. the natural calamities so unexpected that no human foresight or skill could have anticipated it. the Railways are not responsible for any loss. damage. after the wagon . When goods are to be delivered at a siding. (Sec. the Railways are not responsible for any loss.94) 2.” means a defect.  “Latent defects.

deterioration. if the Railways proves that the delay detention arose for reasons beyond their control or without negligence misconduct on their part. damage. was due to negligence or misconduct o the part of Railways or their servants. (or)  either defectively packed or not packed in the prescribed manner and as a result of which they are liable to damage. to or or or Section 96 – Traffic Passing Over Railways in India and foreign countries: In case of any traffic passing over Railways in India and countries. except upon proof that such loss. arose over the Indian Railways.containing the goods has been placed at the point of interchange and the siding owner has been informed by the Railways accordingly in writing. the goods railway of . Section 97 – Goods carried at Owner’s Risk: In case of any consignment carried at owner’s risk. etc. leakage. Also in case of non-delivery of any consignment or part consignment carried at owner’s risk. wastage. the Railways are not responsible for the loss. deterioration of the goods unless it is proved by the owner of that such loss. etc. etc. etc. damage. deterioration. leakage. etc. and the defective or improper packing has been recorded by the consignor in the forwarding note. damage. in foreign damaged. wastage. Section 95 – Delay or detention in transit: The Railways are not responsible for loss. deterioration. deterioration. deterioration. Section 98 – Goods in defective condition or defectively packed: a) When any goods entrusted to the Railways for carriage are. the Railway is not responsible for such on-delivery if it is proved that the non-delivery was due to fire or any other accident to the train. the goods proved by the owner to have been caused by the delay detention in the carriage. the Railways are not responsible for the loss Damages.  in a defective condition as a consequence of which they are liable to damage. deterioration. etc.

leakage or wastage. 152 & 161 of the Indian Contract Act. and such defective condition or defective or improper packing was not brought to the notice of Railways at the time of booking. Section 99 – Responsibility of Railways after termination of transit: A Railway I responsible as a bailee under Sections 151. But the Railways are responsible for any damage. etc. deterioration or nondelivery of any consignment up to seven days after the termination of transit. damage. wastage. leakage. b) On arrival of any goods a the destination if it is found that the consignment have been damaged or to have suffered deterioration.  the Railways are not responsible for any damage. wastage. wastage. . wastage. damage. 1872 for the loss. deterioration. wastage. etc. if negligence or misconduct on the part of Railways or their servants is proved. leakage. deterioration or nondelivery except on proof of negligence of misconduct on the part of Railways or their servants. leakage. or for the condition in which such goods are available for delivery at destination. leakage. If the consignment is carried t owner’s risk. on proof of Railways that the goods were in a defective condition at the time of booking (or)  either defectively packed or not packed in the prescribed manner and as a result the consignment have been damaged or to have suffered deterioration. the Railways are not responsible as a bailee for such loss. deterioration.The Railways are not responsible for any damage. But the Railways are responsible for any damage deterioration. deterioration. leakage. etc. etc. if negligence or misconduct in the part of Railways or their servant is proved.

civil commotion. deterioration or nondelivery is due to the fact that materially false description of the consignment is given in the forwarding note b) Where a fraud has been practiced by the consignor/consignee or the agent c) Where the Railways proved that the loss. strike. damage. lock-out. The Railways is not responsible for loss. damage and deterioration unless it is proved that such loss. Section 102 – Exemption from liability in certain cases: The Railways are not responsible for ay damage. deterioration or nondelivery of any consignment after the expiry of seven days after the termination of transit. stoppage or restraint of labour f) For any indirect or consequent loss or damage or for loss of particular market . damage. deterioration or nondelivery of any consignment in the following cases: a) When such loss. damage and deterioration was due to negligence or misconduct on the part of Railways. damage. damage and deterioration to the luggage. the Railways are not responsible for loss. etc to have been caused by or to have arisen from.The Railway is not responsible for loss. deterioration or nondelivery of (a) Perishables (b) Animals (c) Explosives or Dangerous goods after the termination of transit. unless it is booked and a receipt is issued. destruction. In case of luggage carrier by the passenger in his charge. damage. Section 100 – Responsibility as a carrier of Luggage: The Railways are not responsible for loss. d) Improper loading/unloading by the consignor/consignee e) Riot. Secion 101 – Responsibility as a carrier of animals: The Railways are not responsible for loss or destruction or injuries to any animal carried by railway arising from fright or restiveness of the animal or from overloading of wagons by the consignor.

The Railways have limited their extent of liability for payment of compensation towards loss or damage of goods vide Section 103 of Railways Act. Packages containing valuable goods should b packed and sealed in such a manner that any tampering could be easily detected. he should declare the value of his goods in the forwarding note and pay an additional charge called “Percentage Charge on Excess Value. If the value of goods exceeds Rs. 50/. PCEV charge must be pre-paid. the liability of the Railways will be extended to the value declared by the consignor. 1989 1.Sec. The goods on which the PCEV charges are collected should be packed in such a manner that they are likely to be damaged if fairly handled. 6. 120/. up to Rs. Donkeys.per head 2.g. 7. If PCEV charges are paid.per k. .” 3. 8. 103 of Railways Act.per head Rs. 6. DCM. Pigs.EXTENT OF MONETARY LIABILITY SND PRESCRIPTION OF PERCENTAGE CHARGE RULES. (b) In respect of goods other than baggage. at the time of booking.000/. 9. 1990 (PCEV CHARGES). Sheeps or other animals not mentioned above or Birds Rs. except in case of animals. If any consignor likes the Railways to accept more liability than the above limits.per k. 1989 as follows: (a) In respect to baggage.000/. 3. The packages may be sealed with station seal the sender’s private seal. the PCEV charge can be accepted only on permission from Sr. 800/. 100/. The Railways liability is determined on the basis of actual weight of the goods. One Lakh. One Lakh. Goat. 4.per head Rs. (c) In respect to animals as per the limit prescribed under Schedule – I of the above rules. Elephants Horses Horned cattle or Camels Dogs.g.per head Rs. up to Rs. 5. SMs are authorised to accept PCEV charges for goods of value up to Rs.

the freight charges must be levied only at R. 100/or part per 160 kms. The PCEV charges should be calculated only on the excess value declared by the consignor. if carried otherwise. or part thereof Secion 104 – Liability in respect of goods carried in open wagon: In case of any goods normally carried in covered wagon under ordinary circumstances and would be liable to damage. carried in open wagon with the consent of the consignor recorded in the forwarding note the responsibility of the Railways for destructions. 2/. The consignor must declare the value at the time of booking and pay the PCEV charge. or part (iii) Pearls thereof (iv) Precious Stones (v) Jewellery v – (a) Scooter or Motorcycle (vi) Currency Note and Coins other than Government treasure (vii) Government stamps and Stamped paper other than Postal stationery and stamps Goods other than those specified in Part – I above – 25 Paise per Rs. wherever due for Articles of special value listed under Part –I of Schedule – II of the above rule.1/. is limited to one-half of the amount of liability. 12. 100/.and a maximum of 1% of he excess value. Description of Goods Rate of PCEV charge (i) Gold 13 paise per Rs.or part (ii) Silver thereof per 160 kms. . rate. 100/.or part per 160 kms. It is colleted subject to a minimum of Rs. If PCEV charges are paid. 13. damage or deterioration which may arise only by reason of the goods being carried in open wagon. a) Animals listed under Schedule – I: Re.per Rs. or part b) Schedule – II (Part – I): 15.10. Rates of PCEV charge. 11.R. No maximum PCEV charge is prescribed for animals/birds. 14.

Fertilisers and Steel are moving in bulk.Head of the Department The Court win under the ACM/Court follows up cases against Railways filed before various courts or Tribunals. When the cases are decreed against Railways. Cement. The work of claims branch becomes easy due to the movement of commodities in bulk and computerisation of claims office as follows: The core commodities like Coal. The Claims office functions under the Commercial Department. This bulk movement helps the claims branch to monitor the movement of goods.’ Hence to maintain the overall image of the Railways. Computerisation of claims branch also helps to prevent and settle claims quickly. Many of this traffic are moving in closed circuit rakes. etc. CLAIMS – SOME DEFINITIONS . The Railways are responsible to settle the claims cases up to the satisfaction of the owner of goods as it is an ‘after sale service.ACM-II.CLAIMS ORGANISATION Despite various efforts taken to ensure that the goods are delivered without damage. These traffic moves in rakes consisting of around 100 wagons (in terms of 4-wheelers).ACM-III & ACM-COURT ACM/Claims/SBC & ACM/Refunds/TPJ . The organizational set up of claims branch in Southern Railway is a follows: CHIEF CLAIMS OFFICER DY. POL. MANAGER/CLAIMS ACM-I. It is advantageous both for Claims Prevention and Claims settlement. prepares reply statements as respondents and liaise with the Railway Advocates. this section processes the payment also. the claims organization under the Chief Claims Officer has been set up in all Railways. claims for compensation arises. A Claims prevention section functions to undertake measures and precautions to prevent the claims. CHIEF COMML. pilferage. The claims branch is assisted by a team of Claims Inspecto0rs and Claims Tracers to locate the consignments not delivered to the party. MANAGER/CLAIMS SENIOR COMML. The movement of freight traffic and be now monitored through Freight Operation Information System (FOIS). Food Grains.

4. destination railway or the railway in which loss or damage has taken place.: Consignee mentioned in the Railway Receipt is the rightful claimant. TIME LIMIT: Claims should be fled within 6 months from the date of booking of goods entrusted to the Railway for carriage under Section 106 of the Railways Act. The endorsed consignee on the Railway Receipt can also make the claim. Any claim or complaint made in writing to any of the railway administrations within SIX MONTHS regarding the non-delivery of goods with particulars sufficient to identify the goods shall be deemed as a notice of claim for compensation. etc. AUTHORITY WITH WHOM THE CLAIM HAS TO BE FILED: Claim has to be filed with General Manager. damage. Claim filed in other than the destination railway have to be forwarded to the destination railway. DOCUMENTS TO ACCOMPNY THE CLAIM: . 3 TO WHICH RAILWAY CLAIM IS TO BE MADE: Claims for compensation should be made either to the booking railway. partial delivery. However. the destination railway shall settle the claim. The consignor can also claim duly producing the authority from the consignee to receive the compensation. WHO CAN CLAIM. Chief Claims Officer or at the Good shed/parcel office. 1989. 6.1. Chief Commercial Manager. 5. CLAIM: A “Claim” is a demand by the rightful claimant for compensation in respect of the goods entrusted to the Railways for carriage from on station to another an that have not reached the destination in condition or handed over by virtue on non-delivery. 2.

a) Railway Receipt/Parcel Way Bill – Original or Copy with name for Forwarding and Destination stations, Name of Consignor and Consignee, Number of RP/PWB, Number of packages and Description. b) Copy of shortage/damage certificate, JSR c) Bill or Sale invoice of goods d) Letter of Authority in case of claim by consignor

TYPES OF CLAIMS I. Non-delivery of full consignment: A consignee enquires from the destination in regard to his consignment by producing the Railway Receipt to the SM. After waiting for a reasonable time, he must file a claim to the Claims office within 6 months from the date of booking. II. Partial shortage of consignment: On arrival of consignment at the destination, if shortages noticed in any package, the consignee should surrender the shortage certificate along with his claim to the Claims office. III. Damage of Deterioration, etc.: The damage or destruction has to be jointly assessed by the Railway official and the consignee at the time of delivery. The assessment certificate issued by the O.D granting official should be surrendered to the claims office. PROCEDURE FOR SETTLEMENT OF CLAIMS 1) Claims for compensation will be considered only for booked goods for which receipt is granted. 2) The application should reach CCO within 6 months from the date of booking as per Section 106 of Railways Act, 1989. 3) The claim application should contain full details of the consignment to identify the same (Invoice No., R R No., Date of booking, ‘From’ & “to” stations, Description of consignment, Wagon No., Name and address of the claimant with signature.

4) The nature of claim and the amount of claim should also be furnished in the letter, 5) Action taken by Claims office: a) Verify the claim paper for details of booking and title of goods b) Verify whether the application is made within 6 months period c) Claim is registered in the ‘Claim Register.’ If it is a time bound claim, registered with separate series. d) File is sent to computer section to open File series/Index register – Commodity-wise and Division-wise. e) Call for booking and dispatch particulars from the booking station by issuing a tracing memo. f) Copy of invoice and original forwarding note are also called for. g) Assistance from NR cell is sought to trace the goods in case of consignment not received in full or partially received. h) A notice of claim is served on the booking and intermediate Railways to prove dispatch. Director of wagon interchange, IRCA, New Delhi also may be contacted for movement Particulars. i) Receipt &Delivery particulars and M&DG report are called for from the destination. 6. Settlement of claim: i) On receipt of M&DG report, the enclosures are verified to repudiate or admit the claim (Enclosures: Original Railway Receipt, Copy of DD message, Seal cards in original, joint Survey Report, Transhipment particulars, if any) ii) In case of repudiation, the Officer should record the grounds in the file and party should be advised accordingly. iii) In case of payment, a Claims Inspector should verify the case, which will be approved by the Officer. iv) The following points are to be considered by the Officer to settle claims for compensation. a) Detail in the DD message b) Packing condition c) Inherent quality of the consignment d) Standard order for the consignment e) Leading Note f) Report from the departments, if any g) Technical expertise obtained, if obtained v) If claim is admitted, necessary pay orders are sent to the party, which can be encashed at the station mentioned

therein. (Compensation up to Rs. 1,0000/- can be disbursed at pay orders encashable at stations in S. Rly. If the party belongs to a station under the jurisdiction of other Zonal Railways or the amount is more than Rs. 10,000/- or the amount to be paid by M.O. or by Cheque, the pay order should be sent to FA & CAO/MAS).

FIXATION OF INTER-RAILWAY LIABILITY 1) In case of non-delivery of goods, booking and despatch particular should be called for from the booking station together with copy of invoice and original forwarding note. 2) In case of damage, deficiency, etc., the remarks in the R.R., DD message, JE/MECH. Certificate for WT/NWT of the wagon, Delivery remarks and Joint Survey Report should be examined to determine and decide the settlement. 3) Since correct despatch of goods is the responsibility of the booking railway, ins case of misdespatch, the mis-despatching railway will be held responsible. 4) Any loss or damage also occurs in misdespatched goods, onethird of the cost should be borne by the Railway in which the loss/damage occurred. 5) If the value of good I more than Rs. 20,000/-, appointment will be made to the booking Railway and passing railways in proportionate to the distance of the traffic. 6) If the value of goods is Rs. 20,000/- or below, the settling railway has to bear the cost whatever may be the reason for nondelivery of goods, being a conventional practice. GUIDELINES FOR DISPOSAL OF COMPENSATION CLAIMS I. DAMAGE BY WET: 1) Received in Through Wagon: a) If the damage is noticed in through wagon and if the wagon is certified as “Water Tight” both as per RR and as per TXR certificate at destination, the claim is to be repudiated. b) If the wagon is certified as “Non Water Tight” by the TXR at destination, the claim is to be admitted.

c) If the RR bears protective remarks, viz., C’ment damp, etc. and if the wagon is certified as “Water Tight” the cla8im is to be repudiated. d) If the damage is noticed near doorways where nonstandard size dunnage bags are provided, the claim is to be repudiated, unless otherwise the RR specifically mentions about the provision of Standard size dunnage bags. 2) Transhipped consignment a) If the consignment passed the transshipment point in sound condition, the claim is to be admitted. b) If the damage is noticed at the first transshipment pointy and if the original wagon was “Water Tight” the claim is to be repudiated. c) If the damage is noticed at the transshipment point and the RR bear protective remarks, the claim is to be repudiated. d) If the damage is noticed at the first transshipment point and if the wagon is certified as “Non Water Tight” at destination, the claim is to be admitted for further damages only. e) If both the original and transshipped wagons are certified as “Non Water Tight,” the claim is to be admitted in full. 3) Partial Shortage: a) If the defective bags are found near doorways of the original wagon which arrived with seals intact or otherwise and where non-standard size dunnage bags are provided, the claim is to be repudiated and if standard size dunnage bags are provided as per remarks on RR., the claim is to be admitted b) If the defective bags are found in any part of the original wagon, which arrived, with all seals intact, the claim is to be repudiated. c) If the transshipment point maintains sound despatch, the claim is to admitted irrespective of the position of the defective bags in the wagon. d) If the defective bags are found near body holes, panel cuts, etc. the claim is to be admitted. 4) Non-receipt of entire consignment (Both wagon load traffic and small consignments)

a) Such claims are admitted only after tracing consignments by deputing claims tracers for tracing.



SCHEDULE OF POWERS FOR SETTLEMENT OF CLAIMS The claims settling authorities are empowered to settle claims for loss, damage, etc. in accordance with the following powers (w.e.f. 01/06/2001): Designation of the Officer GENERAL MANAGER CCM in HAG or ordinating head CCO DY. CCM (CLAIMS) SCM/CLAIMS ACM/CLAIMS SM Monetary power for compensation claims Full Powers coRs. 4,00,000/Rs. 2,00,000/Rs. 60,000/Rs. 15,000/Rs. 8,000/Upo Rs. 400/-

CAUSE-WIE NALYSIS OF IMPORTANT CLAIMS SETTLED The trend of cases during September 1999, are analysed below. The claim settlement files when being put up, following points are to be highlighted so that the Officer can go through the paper without difficulty. 1) Grains and Pulse – FCI consignments.

In case of grains and pulses, FCI tops the list in preferring claims, compared to the other commodities. The FCI prefers a considerable number of claims cases with regard to Southern Railway. Most of the cases are due to “Damage by wet.” The following points re to be considered before putting up the file to the Officers. a) By going through the Damage and Deficiency message, the position of damaged bags viz. Bottom layer, Top layer, Doorways, etc. to be indicated. b) Unloading supervised by whom is to be indicated. c) The quantum of damage and nature of damage has to be indicated. d) The inherent quality of the consignment is to be indicated. e) If there is any delay in granting OD/AOD should be indicated. f) The time lag between the unloading time and OD/AOD granted time and by whom is to be indicated.

for damages and in eight cases Rs. damages.000/. etc. When the railways are unable to transport the goods by quickest means due to disruption of traffic they are being auctioned enroute and thereby loss is avoided. During September 1999. 5) Spices: Every care is being taken by the RPF at all the vulnerable points where there is handling of spices.80. five cases were settled by paying Rs. The position of the should e indicated in the noting so that initially counter checked b y the Officer.g) Whether there is any dispute regarding damage. an expertise opinion sought for from technical assistance.8. Private parties get clear RR s most of the claims in the consignments.was paid for loss. thereby we will be capable of locating consignments and also we can find out any missing or theft taken place. Before settling such cases the movement of such consignments can be counter checked with the RPF department. while taking a decision it can b 3) Iron and steel consignments: In Iron and Steel consignments when claims are effected. FCI mainly book consignment under “Said to contain” RR and Nonstandard size dunnage is being used by them. which is comparatively costlier. . we ha e to ensure that kit is secured using strong wire ropes so that the consignment cannot be disturbed enroute.000/. The top layer should be packed properly and knotted with thick wire and lead seal. When the railways are unable o transport the consignment within a reasonable time or in case of shortage or pilferage claims are paid. should be used for detecting easily there is any disturbance enroute. They do not get their claims paid because of non-supervision by Railway staff and nonadherence to the claims prevention measures. 4) Fresh Fruits and Vegetables: Normally fresh fruits and vegetables are carried by the quickest means thereby avoiding claims. 2) Grains and Pulses – Private parties: such payment is being made to them for same manner. 18.

No. 2. 34.) Average time taken for disposal of claim during the month Closing balance of no. of suit disposed of. 8. 10. of claims pending Court cases (No. 3. In order to know the information on these lines the following statistics are compiled.000 was paid. 9. auction sale can be conducted and wagons can be connected by carefully tracing the wagons. as it is neither beneficial to the Railway nor to the customer. Opening balance of claims pending No. 6. 4. of new suits. 1. For the unconnected consignments. 31. 7. of new claims – opened No. It is also important that the cost incurred by the Railway administration on claims work is kept within reasonable limits. 5. POL traffic: By checking the fitness of the wagon the claim whether to be paid or not can be decided. etc. as the cost incurred on such establishments is unremunerative. 8) Cement: Shortage of 13e cases involving Rs. The amount of claims paid reflects upon the efficiency of the Railway operation. of claims settled (By payment/repudiations/delivery etc. CLAIMS STAISTICS Claims paid is a dead loss to the Railway. Therefore it is necessary that the number of claims cases should be kept as low as possible.000 was paid and 5 cases of damage involving Rs. The inherent quality of the product also needs to be checked for settling claims. Shortage occurred mainly due to “Seal missing” wagons. of claims – reopened No.) Total amount paid towards compensation Staff costs Legal expenses . 9) Timber: Normally will not get damage/missing.6) 7) Salt: Mainly arise due to pilferage and improper handling of bags.

The following claims statistics are essential for a we’ll-directed claims preventive operation: (i) Commodity Statistics: This gives an analysis of commodities involved in claims and the amount of claims compensation paid in receipt of each commodity. it I refundable to the party. Overcharge means the charge shown for collection on the invoice or railway receipt in excess of the correct freight charge due on the consignment. etc. . This will help to identify the vulnerable areas for theft or pilferage. parcel or goods traffic. On the basis of such study. Claim due to wet reported mostly on goods loaded from a particular station means that booking station should be advised to ensure watertightness of wagons. the existing packing conditions may be revised or special conditions may be introduced.ROLE OF CLAIMS STATISTICS IN CLAIMS PREVENTION The claims statistics are useful to identify the areas where preventive measures need to be organised. Since overcharge represents charge collected or shown for collection in excess of the authorised charges. (iii) Location Statictics: This furnishes information on the claims that have arisen at individual station or in a particular area. CLAIMS FOR REFUND OF OVERCHARGES Occasionally the booking station may overcharge a consignment in case of luggage. This enables study of the condition of booking with a view to determine the scope for arresting the leakage. provision of dunnage materials. (ii) Sectional Statistics: This provide an analysis of the claims that have arisen on the various sections of the Railway. Compensation of claims case helps to derive a variety of claims statistics. so that security arrangements may be strengthened.

per consignment. when the amount exceeds Rs.The SM is empowered to refund overcharges in respect of ‘To-pay’ traffic at the time of delivery under certain circumstance as follows: 1) Error in rate not affected by description or condition of carriage 2) Error in classification 3) Error in calculation (Before arranging refund in this case. office. The DCMs of the TDR issuing divisions are now empowered to settle claims for refund of fares. 2. Discrimination of Claims for refund of fare: As most of the passenger tickets are computerized and the journey particulars are easily verifiable locally. i) in case of cash payments. Pre-heck by accounts is necessary. the system of refund of fares is decentralized. Refund of Passenger Fares: Claim settling officers are empowered to settle claims for refund of passenger fare under certain circumstances where the SMs are not empowered to grant refund of fares across the counter. In such cases. from the date of presentation of bill by Railways. the station staff will issue Ticket Deposit Receipt and the party will apply for refund with CCM/Coaching Refunds or DCM of the concerned division as the case may be. RAILWAY CLAIMS TRIBUNAL .000/. Monetary Powers to refund overcharges: All officers of the Commercial department have full powers to grant refund of overcharges within Tariff Rules. from the date of payment and ii) in case of warrants and credit notes. it is to be ensured that the error does not really exit in the invoiced weight) In all other circumstances the SM is not empowered to grant refund of overcharges and the Claims preferred within six months. Chennai. Also it is more economical while comparing the expenditure involved in verification of individual cases with the inspectorial force available at H.Q.

The Railways are vested with the responsibility of “Carrier” for the carriage of goods and passengers. A number of legal provisions are laid down under the Railways Act. In accordance with the above provisions. etc. Deficiency. destruction. Chennai and Ernakulam. enabled establishment of a separate Tribunal for settling claims against Railway. 1987. For death or injury to passengers occurring as a result of Railway accidents and/or any untoward incidents. The Railway Claims Tribunal can enquire into and determine claims against the Railway Administration with regard to the following: The Railway Claims Tribunal can enquire into and determine claims against the Railway Administration with regard to the following: 1. The dispute redressal process used to prolong for a period of 3 to 4 years. Railways have dealt with disputes regarding settlement of claims with regard to. Non-delivery. According to the value of the claim. to the booked goods  Personal injury and loss of life on the part of passengers due to accident and due to untoward incidents (Section 124 & 124 A) Refund of fares and freight charges The normal procedure for such dispute redressal before 1987 was to file suits in civil courts as per the Civil Procedure Code. damage. For loss. Deterioration. 1987. Adhoc Claims Commissioner were appointed by the respective Sate Governments. deterioration or non-delivery of animals or goods entrusted to the Railways for carriage 2. The process was anyhow. At present the Railway Claims Tribunal functions at 19 locations as separate benches including Bangalore. The Railway Claims Tribunal came into existence w. suits were file in the appropriate courts having territorial jurisdiction over the Railways concerned. 08/01/1989 under Section 3 of the Railway Claims Tribunal Act.  Damage.f. To settle claims with regard to death and injuries to the passengers I case of Railway accident. time consuming process. And now the RCTs succeeded in their attempt in reducing the delay in settlement of disputes. The passing of Railway Claims Tribunal Act. . 1989 to deal with the areas of responsibility and also specify condition s under which the Railways can claim exemption from such responsibilities.e.

Four Vice Chairmen and such number of technical and judicial Members as the Central Government may decide. . The Chairman shall hold the office for five years or up to the age of 65 years whichever is earlier. A Bench shall consist of one judicial Member and on Technical Member. The Vice-chairman is qualified to be a Judge of High Court. The Bench may also consist of single Member. For refund of fares or freight paid in respect of passengers. Vice-chairman and Members are appointed by the President of India. animals or goods entrusted to a Railways for carriage. the Vicechairman may look after the duties of Chairman. The Chairman also discharges the functions of Judicial Member or the Technical Member of any Bench. The Chairman shall be appointed only in consultation with Chief Justice of India.3. A Technical Member must have worked for a minimum of three years in Railways in the scale equivalent to Joint Secretary to the Government of India and has adequate knowledge about Railway Claims and other Commercial matters. In the absence of Chairman. Powers of RCT: The RCT has the following powers:  Power to decide on principles of natural justice  Power to regulate it’s own procedure including fixing of places and time of enquiry  Power to transfer a case from one bench to another Jurisdiction of RCT: The RCT shall exercise the powers and authority of a civil court relating to. Structure of Railway claims Tribunal: The RCT consists of a Chairman. The Chairman. The Vice-chairman and other Member hall hold the office for five years or up to the age of 62 years whichever is earlier. The Chairman must be or has been a Judge of a High Court or he has worked for a minimum of two years as Vice-chairman. A Judicial Member must be or has been or is qualified to be a Judge of a High Court.

An application should be presented in three copies to the Registrar or the concerned RCT either by hand or by registered post. PROCEDURE FOR REDRESSAL OF DISPUTE THROUGH RCT Notice to the Railways for claims for compensation: 1. In case of disputes on claims for compensation or claims for refund of overcharge. APPLICATION BEFORE RCT: 1. The notice may be sent to the booking Railway or the destination Railway or the Railway on whose jurisdiction the loss. 2. 2. deterioration occurs within 6 months from the date of booking. 4. 5. . any person may approach Railway Claims Tribunal. Any information demanded or enquiry made or complaint made in writing regarding non-delivery or delayed delivery of the goods shall also be deemed as notice. 3) Though RCT is a Quasi-judicial forum. The notice should contain the details sufficient to identify the goods. deterioration or nondelivery of animals or goods entrusted to a Railway for carriage (iii) Compensation payable le under Section 124 (death or injury to the passengers in case of Railway accidents) (iv) Claims for refund of fares or fright charges paid in respect of animals or goods entrusted to a Railway for carriage FEATURES OF RAILWAY CLAIMS TRIBUNAL 1) The RCT has Two members – Member (Technical) & Member (Judicial). such point shall be decided by a third Member.(i) the responsibility of Railways as carriers under the chapter VII of Railways Act. In case of claim for refund of overcharge. I is required to act judicially. damage. damage. The Member (Technical) is an administrative member from the Railways. 3. 1989 (ii) Compensation for loss. A notice for claim for compensation or claim for refund of overcharge should be sent by the person or on his behalf. the notice should be served on the Railway to which the overcharge has been made. 2) It is an independent forum set up to adjudicate Railway claims. 4) RCT has no ceiling to grant compensation 5) If the Members of the bench differ in opinion on any point.

The application may be summarily dismissed by the TCT if for reasons to be recorded they are pf opinion that there are not sufficient grounds to proceed. If the respondent does not appear o the date specified or appear and admits the claim. they my file a reply on or before the date hearing. The reply shall be accompanied by the documents on which the respondent relies. damage.3. deterioration to the goods or animals occurred 6. In the reply. 11. it shall be registered by giving a serial number 7. . 2) The RCT shall record the issues separately as issues concern point of facts and concern points of law. 5. 10. 4) The RCT may issue summons for the appearance of witnesses and adjourn the hearing duly recording the reasons thereof. On verification if the application is found to be in order. in case of matters other than claims of compensation for death or injury to passengers. 8.D. the RCT shall proceed to dispose the application. If the respondent contests the claim. 13. An application fee as specified should be remitted in the form of D. The application should be filed before the Bench having territorial jurisdiction over the place where: the goods or animals were booked where the destination lies the loss. the RCT shall proceed evidence. the RCT shall ascertain upon what material propositions of fact or of law the parties are at variance. deny or explain the facts stated by the applicant and state any additional facts a may be found necessary along with affidavit. A copy of application of the party shall accompany the notice 9. 3) After recording the issues. the respondent shall specifically admit. The tribunal shall issue notice to the respondent to show cause against the application on a date of hearing to be specified. 12. The applicant my rectify defects if any. The application should be typed legibly in double line space in a good quality paper (preferably bond sheets) 4. in the application in the presence of the Registrar. FRAMING AND DETERMINATION OF ISSUES 1) On consideration of reply from the respondents.

4. Hence the desired economical and quick relief may not be possible through the normal civil jurisprudence. Any person aggrieved by the decision of Railway Claims Tribunal my prefer an appeal to the appropriate High Court in the territory. An order mad by the RCT shall be executable as a decree of Civil Court under the provisions of Code of Civil Procedure. the redressal of their grievances should be economical and quick. Since the user public is I large numbers. The RCT after hearing the applicant and respondent shall pas order at once or as soon as thereafter as may b applicable. 2. 3. if the applicant appear and the respondent doe not appear on the date of hearing. agency enjoying certain immunities and privileges while presenting their cases in the Tribunal. viz. the Indian Railways do not loose any privileges of being a Govt. there will be a long delay on account of heavy civil disputes in the country. 1908. PASSING OF ORDERS & APPEAL: 1. Further in case accidents involving loss of life and injuries to persons. 5. 6) The respondent may apply to RCT to set aside such ex-parte hearing duly satisfying the tribunal that they were prevented b y any sufficient cause from appearing or the notice was not duly served. .. Disputes regarding rights of users and responsibilities of the Railway Administration as a ‘Carrier’ and a ‘Bailee’ are a natural consequence. The Zonal Railway will satisfy the decrees of the RCT after following the normal Procedure. have to be liberally interpreted based on principles of natural justice. determination of liquidated damages also forms a very important form of the redressal process. the respondents. The Railway Claims Tribunal therefore as an alternate dispute redressal forum with jurisprudence exclusively limited to certain forms of compensation payable by Railways ideally serves the needs of the rail users.5) The RCT may at their discretion adjourn the hearing or her and decide the application ex-parte. Sine material damages are also involved. Every order of the Tribunal shall be in writing and shall be signed by the Members of the Bench. If the user public is made approach only the civil jurisprudence for their claims for compensation.An alternate disputes redressal forum over Civil jurisprudence: The RCT as a disputes redressal forum serves a large number of rail users. statutory provisions with regard to the quantum of compensation. RCT. The time same time.

which may cause delay to train or loss to the Railway. which may affect the safety of the Railway. by any person in or on any train carrying passengers. No. 10/08/2000) 1.2000/Safety (A&R)/19/20 dt.e. 1989 for death or personal injury to passengers and also of their goods or animals in an accident involving a train carrying passenger. 1989. Passengers or Servant or Others. Accidents are classified in categories from ‘A’ to ‘R’ excluding ‘I’ & ‘O’ (i. (i) the commission of a terrorist act within the meaning under Section 3 of the Terrorist and Disruptive Activities (Prevention) Act. or in a waiting hall. cloakroom or reservation or booking office or on any platform or in any other place within the limit of a railway station or (iv) the accidental falling of any passengers from a train carrying passengers. The Railway Administration is liable to pay compensation under Section 124 of the Railways Act.: Bd. ACCIDENT COMPENSATION – DEFINITIONS (Ref. 1987 or (ii) the making of a violent attack or the commission or robbery or dacoity or (iii) the indulging in rioting. 16) . Accident: Accident is an occurrence. “UNTOWARD INCIDENTS” means. “ACCIDENT” means an accident of the nature described in Section 124 of Railways Act. The duties and responsibilities of the Railway Administration to take care of the user public affected by an accident or any untoward incident are prescribed under the law also. ACCIDENT COMPENSATION Railway accident causes not only damage to public goods and railway property but also injury and loss of human life.Thus the tribunal serves both the sides reasonably well without any undue advantage or preference to either of the party. shoot-out or arson.

to meet the expenses to be incurred in connection with treatment. cremation.Rs.2. The amount is payable to the victims of a train accident or untoward incident or to the next of kin of the deceased as the case may be.000/. 320 of Indian Panel Code 45 of 1860 as follows: a) b) c) d) e) f) g) Emasculation Permanent privation of the sight of either eye Permanent privation of the hearing of either ear Privation of any member or joint Destruction of permanent impairing of the powers of any member or joint Fracture of dislocation of a bone or tooth Any hurt which endangers life. Ex-gratia payment: Ex-gratia payment is made immediately after the accident or untoward incident.. 500/- . A Railway Servant is considered to have been injured if he/she is prevented from Returning to work as a result of injuries fo0r a period of 48 hours after the occurrence of the accident. 5. in severe bodily pain or unable to follow his ordinary pursuits SIMPLE injuries incurred are which make the injured person incapacitate to follow his customary vocation during 48 hours after the occurrence of the accident. transportation.000/. 15.Rs. etc. of a victim. Injuries : Injuries are classified as GRIEVOUS & SIMPLE as follows: GRIEVOUS injuries as defined in Sec.Rs. (i) The amount of Ex-gratia relief payable to the dependents of dead or injured passengers involved in train accidents or untoward incidents as defined under sections 124 and 124-A should be as under:(a) In case of death (b) In the case of grievous injury (c) In case of simple injuries . or which cause the sufferer to be during the space of twenty days.

as soon as possible after the immediate needs by way of medical attendance etc. (iii) These payments should be made at the spot of the accident. NOTE: Railway employees traveling on duty or as passengers against Free passes are to be treated as bonafide passengers for this purpose. Ex-gratia payment could also be made to Railway servants killed or injured while on duty by a moving train.(ii) No ex-gratia relief admissible to the trespassers.H. gang man working in tract run over accidentally by a moving train. to the injured persons have been attended to. The applicant can directly approach the Railway Claim Tribunal to claim for compensation. such payments will be counted towards the amount of compensation payable if action is tenable against the Railways under the law of torts and award is actually granted by a Court of Law.E. person electrocuted by O. e.. Procedure for claim for compensation in case of accidents: In cased of accidents or untoward incident. The amount of ex-gratia relief admissible to road user who meets with an accident due to Railway prima facie negligence at manned level crossings would be as under:(a) In case of death (b) In the case of grievous injury (c) In case of simple injuries .g. except in the case of road user at manned level crossings as mentioned above. (iv) These ex-gratia payments should not be taken into account at the time of disposal of the formal claim before the Railway Claims Tribunal. no notice is required to be serve to the Railways. 1.000/.Rs. and road users at unmanned level crossing. 4.500/NIL In case of road users who are dead or injured at manned level crossing s.Rs. Who can claim compensation? . at the personal discretion Senior Scale (or higher) Officer to be nominated by a General Manager.

a) b) c) d) A person who ha sustained injury or suffered any loss An agent of person who has sustained injury or suffered any loss If the person is a minor. 1989 the following can file an application for compensation before the RCT. 9) In he reply. they ay file a reply on or before the date of hearing. the Guardian (One application may be submitted by one dependant for the benefit of all The dependents) PROCEDURE 1) An application should be presented in three copies to the Registrar of the concerned RCTeither by hand or by an agent or his duly authorized legal practitioner or by registered post 2) No application fee is required to file application to claim for compensation is case of accidents or any untoward incidents. A copy of application of the party shall accompany the notice. in the application in the presence of the Registrar. FRAMING AND DETERMINATION OF ISSUES: . the RCT shall proceed to dispose the application. 10) The application may be summarily dismissed by the RCT if for reasons to be recorded and they are of opinion that there are not sufficient grounds to proceed. any dependant of the deceased or if the dependent is a minor. 4) On verification if the application is found to be in order. 8) If the respondent contests the claim. the respondent shall specifically admit.As per Section 125 of Railways Act. 6) The tribunal shall issue notice to the respondent to show cause against the application on a date of hearing to be specified. The reply shall be accompanied b y the documents on which the respondent relies. 3) The application may be filed before the Bench having jurisdiction over the place where the accident occurred. 7) If the respondent does not appear on he date specified or appears ad admits the claim. 5) The applicant may rectify defects if any. the Guardian In case of death. it shall be registered by giving a serial number. deny or explain the facts stated by the applicant and state any additional fact as may be found necessary along with affidavit.

4. 2. 3.  The aggrieve passengers should apply to the RCT. 1989. The RCT after hearing the applicant and respondent shall pass an order at once or as soon as thereafter as may be practicable. United India Insurance Company Ltd. The respondent may apply to RCT to set aide such ex-part hearing duly satisfying the tribunal that they were prevented by any sufficient cause from appearing or the notice was not duly served. On consideration of reply from the respondents. the above scheme was introduced to benefit the passengers traveling over Indian Railways/. 1994 W. . The RCT may issue summons for the appearance of witnesses and adjourn the hearing duly recording the reasons thereof. An order made by the RCT shall be executable as a decree or Civil Court under the provisions of Code of Civil Procedure. Under this scheme all bonafide passengers including Railway staff traveling on duty or on Railway passes are entitled to compensation for loss of life of injury due to accidents or any untoward incident defined under Section 124 and 124–A of Railways Act. 4. 01/08/1994.F. Any person aggrieved by the decision of Railway Claims Tribunal may prefer an appeal to the appropriate High Court in the same territory. the RCT shall proceed to record evidence.1. 3. The RCT may at their discretion adjourn the hearing or hear and decide the application ex-part. PASSING OF ORDERS & APPEAL: 1. shall be reimbursed by M/s. 2. 5.  The compensation paid by the Zonal Railway for claims for compensation under Sections 124 and 124 – A. the RCT shall ascertain upon what material propositions of fact or of law the parties are at variance. if the applicant appears and the respondent doe not appear on the date of hearing.E. 5. After recording the issues. 6. 1908. The Zonal Railway will satisfy the decrees of the RCT after following the normal procedure. Every order of the Tribunal shall be in writing and shall be signed by the Members of the Bench. The RCT shall record he issues separately as issues concern points of facts and concern points of law. Railway Passengers Insurance Scheme.

000 2.f.000 80.20.000 1. Four lakh w.  With respect to injury the amount of compensation would determined based on the Schedule given below: SCHEDULE Amount of Compensation Rs.60.000 4.000 . 01/11/1997.000 1.e.00.40.000 4.00.000 4. The CCO will submit their claims along with the certified copy of the decree of the RCT after making payment as per the decree  In view of the increasing cost of living and earning capacity of the people the maximum amount of compensation for death of passenger is increased from Rs. 4.00.000 2.000 4. Two lakh to Rs.000 PART III For amputation through shoulder point For amputation below shoulder with stump less than 8” from tip of acromion 3 For amputation from 8” from tip of acromion to less than 4 ½” below tip of olecranon 4 For loss of a hand or thumb and four finger of one hand or Amputation from 4 ½” below space tip or olecranon 5 For loss of thumb 6 For loss of thumb and it metacarpal bone 7 For loss of four fingers of one hand 8 For loss of three fingers of one hand 9 For loss of two fingers of one hand 10 For loss of terminal phalanx of thumb 11 For amputation of both feet resulting in end hearing 1 2 3.60.000 3.000 80. PART I 1 1 2 3 4 5 6 For death PART II For loss of both hands or amputation at higher sites For loss of hand and foot For double amputation through leg or thigh or amputation though leg or thigh on one side and loss of other foot For loss of sight to such an extent as to render the claimant unable to perform nay work for which eye sight is essential For very severe facial disfigurement For absolute deafness 4.000 2.

000 1.000 2.000 . 2.000 40.00.000 2.000 2.000 1.20.000 32. the other being normal 28 For loss of all toes of one foot through the metatarsophelangeal joint 29 Fracture of Hip-joint 30 Fracture of major bone Femur Tibia Both limbs 31 Fracture of major bone Humerus Radius Both limbs 32 Fracture of pelvis not involving joint 33 Fracture of major bone Femur Tibia one limb 34 Fracture of Major Bone Humerus Radius Ulna One limb OPENING OF SIDING 3.000 1.000 1.000 80.000 3.000 80.000 1.60.000 40.60.000 80.000 12 For amputation through both feet proximal to the Metatarsophalangeal joint 13 For loss of all toes of both feet through the metatarsophalangeal Joint 14 For loss of all toes of both feet proximal to the proximal Interphalangeal joint 15 For loss of all toes of both feet distal to the proximal interphalangeal joint 16 For amputation of hip 17 For amputation below hip with stump not exceeding 5” in length measured from tip of great trenchanter but not beyond middle thigh 18 For amputation below hip with stump exceeding 5” in length measured from tip to great trench-antrer but not beyond middle thigh 19 For amputation below middle thigh to 3 1/2” below knee 20 For amputation below knee with stump exceeding 3 ½” but not exceeding 5” 21 Fracture of pine with paraplegia 22 For amputation below knee with stump exceeding 5” 23 For loss of one eye without complications the other being normal 24 For amputation of on foot resulting in one-bearing 25 For amputation through one foot proximal to the maetatarso-phelalgeal joint 26 Fracture of pine without paraplegia 27 For loss of vision of one eye without complications of dis-figurement of eye ball.20.000 1.000 3.000 80.000 60.80.

For handling railway’s own traffic iii) Public Siding .When a railway line of small length runs sideways from a railway station to handle particular traffic. now the Railways are encouraging construction of ‘Private Siding’ only and not ‘Assisted Siding. major industries found it convenient to provide siding in their premises which facilitated them to avoid incidental costs and to provide door-to-door service. In earlier days. in case of an ‘Assisted Siding’ the owner pays an annual interest on the partial capital invested by the Railways. the freight traffic was handled at Goods sheds in the form of piecemeal traffic in wagonloads and small traffic. Now 75% of freight traffic is being handled in sidings. it is termed as a ‘Siding’.For handling goods consigned to or by major industries and the Railways partially assist the owner to reduce the capital outlay on the construction of the siding As a matter of policy.” Defence between ‘Private Siding’ and ‘Assisted Siding’: While the owner of policy of ‘Private Siding’ invested all the capital required. it involved multi-handling and the major industries were made to pay higher incidental charges a part from freight charges. Kinds of Sidings: There are FIVE kinds of sidings as follows: i) Military Siding . Procedure to open a siding: . With economical and industrial growth in the country. As there was no door-todoor service.For handling defence materials ii) Departmetal Siding .For handling special types of traffic for all customers iv) Private Siding . In the recent past Indian Railways have closed down more than 3000 Goods sheds and many more are in the process of closing down. Hence sidings have assumed greater importance as they avoid maintenance of terminal facilities at Railway stations. A siding is advantageous to the owner who saves so much on carting his goods to/from the railway station while the Railway saves in capital investment to expand terminal facilities to deal the greater volume of traffic.For handling goods consigned o or by major industries and the whole capital outlay to construct the siding is borne by the owner v) Assisted Siding .

In case of ‘Assisted Siding’ while the applicant bears the cost of sub grad work. For the purpose of electric traction also. while the applicant bear the cost of required equipments. the applicant should pay n interest on the cost equipments.. 1) The Applicant should submit his application for construction of siding to the DRM. the party should pay the rent. 4) The cost of survey work is not refundable after the work has started. culverts. etc. viz. Sub grade and Super grade. installation and maintenance in the case of Private Siding. 2) The cost of preliminary survey and preparation of plans and estimates as notified by the Railways should be paid. The discretion is influenced by consideration of terrain. The super grade consists of rail. when the siding is closed for traffic. And the applicant bears the interest on the capital invested by Railways. girders.It is the discretion of the Railways to agree to construct a ‘Siding’. For an ‘Assisted Siding’ also the land acquisition is like that of a private siding. In case of “Private Siding” the applicant bear the cost of both the sub grade and super grade works. The Railways bear the cost of super grade work. which can be removed. And in both cases. Sub Grade work and Super Grade work The Railway line between the serving station and the siding consists of two portions. operation of trains generally in the section particularly at the serving station. which will facilitate the fixture of the super grade. FOR A ‘Private Siding’ the applicant must have the land in his premises to construct the siding. the land so acquired vests with the Railways. 3) The Engineering department conducts survey and approximate cost of construction is worked out. installation and maintenance in the case of Assisted Siding. etc. The Railway should acquire the land between his premises and the station at the party’s cost. . location of residential areas. For the Railway land used if any to construct the siding and lay the connecting line. sleepers. But it can be refunded if the survey work is not started duly deducting expenditure if any incurred by Railways. The sub grade is the earthwork and formation.

10) 11) 12) 13) 14) 15)

5) The proposal will be sent to the HQ for examination of feasibility of traffic prospect. 6) HQ approves the construction of siding duly obtaining accounts concurrence. 7) Before sanctioning of construction of the siding, the applicant should execute n agreement in the prescribed format. 8) The copy of ‘Siding Agreement’ should be supplied to DRM, DAO, the Traffic Accounts office and the SM of the serving station. 9) When the applicant takes up the sub grade work, the Railways charge an inspection charge. The sub grade work shall be executed und the supervision of Railway Engineering Staff. The applicant should pay the total estimated cot of the work in advance, if the Railways undertake the work. All charges incurred in laying and fitting the permanent way materials and other materials shall be borne by the applicant. After completion of work the Railway Engineer will certify the siding as ready to be opened for traffic. And the siding can handle the traffic. Also the applicant should deposit an amount fixed b y the Railways a security deposit towards the cost of dismantling of the siding within the Railway land ad against future default in payment of charge if nay. Other charges payable by the applicant: (a) In case of Private Siding:

 Repair and Maintenance charges at the notified rats for the siding portion within Railway land is payable in advance within seven days after closure of every financial year.  Repair and Maintenance charges for the portion outside Railway land is payable if such work is undertaken by Railways at the request of applicant.  Otherwise, the repair and maintenance may be undertaken by the applicant at his cost under the supervision of the Railways. Charges for the supervision at notified rates are payable.  Inspection charge at notified rates is payable for inspecting the fitness of the sidings which are not maintained by Railways.  Land Rent at prescribed rates is payable for the user of Railways’ land in advance on the 1st day of April every year. The land rent may be reviewed once in five years.  Establishment cost of Railway staff posted if any at the siding as advised by the Railways. (b) In case of Assisted Siding:

 Interest on the capital invested by the Railways at the rate of dividend payable by the Railways to the General Revenue should be paid in addition to the above charges. Responsibility of Railways on goods to be loaded/unloaded at siding (Section 94 of Railways Act 1989):  The Railways are not responsible for any loss, damage, etc., to the goods booked at a siding, unless the wagon containing such goods ha been placed at the point of interchange and the same has been informed in writing to the Railways.  The Railways are not responsible for any loss, damage, etc. to the goods to be delivered at a siding, after the wagon containing such goods has been placed at the point of interchange and the same has been informed in writing to the siding owner. Pheripheral yard: a) b) c) d) e) In some major sidings, sufficient terminal facilities are provided in the siding itself, to Facilitate direct reception/dispatch of goods trains. In such cases, the goods trains meant for siding will not be dealt at the serving station. And hence the freight will be levied on through distance basis up to the buffer end of the siding or the farthest point of the exchange yard, instead of up to the serving station. No separate siding charge will be levied. Under this system, only trainload traffic is dealt.  The list of sidings having peripheral yard system of charging over Southern Railway is notified in Rate Advice No. 10 of 2000 with the related distance for change. Special attention to major Sidings (Ref. No. C.490/RBS/Vol.III dt.04/06/1999) In order to provide specialised service to the major sidings, Railways have categorised the sidings into three groups on the basis of their originating earnings as follows: Originating Earnings per annum Above Rs. 100Crores Above Rs.50 Crores but up to Rs. 100 Crores Type of Siding Platinum Card Holder Gold Card Holder

Above Rs. 25 Crores but up to Rs. 50 Crores The Zonal Railway should nominate Officers,

Silver Card Holder

 to interact and provide single window attention to the customers  to sort out the problems of the valued customers and  to improve the rail dispatch Issued related to maintenance, disputes in respect of staff payments, issued pertaining to technical departments and also to suggest ways and mean to reduce the overall siding costs, inspections and formal meeting with these customers will be held at DRM/ADRM level once in 3 months and at CCM/COM level once in 6 months.

CALCULATION OF SIDING CHARGE The Siding Charges are the charges levied by the Railway to convey the goods consigned to or by the owner of the siding. Siding charge is levied in addition to the freight charge levied from and to the serving station. a) In case of Assisted /Private Sidings, the siding charges are levied on per trip basis. b) A trip means, movement of one Railway engine from the centre of serving station to the end of siding or up to the point of interchange as the case my be and back for the purpose of placement/removal of one or more lo added/empty wagons. c) The average trip time is fixed duly conducting shunting trials in the presence of Party’s representative and representatives from Commercial, Operating and Accounts departments. d) The siding charge per trip will be, Average trip time (in minutes) X All India Engine Hour Cost ------------------------------------------------------------------------------------------------------60 e) The siding charge per trip is notified for the use of o0ne engine per trip. If more than one engine is used in a trip, siding charges will be levied for the additional locos also.

 The All India Engine Hour Cost is fixed by the Railway Board and revised from time to time.  The siding charges should be reviewed periodically not less than once in a year to that they cover the cot of haulage of wagons to the siding. Levy of siding when more than one engne are used (Ref: C. 490/P/92/Vol. XVIII – Rate Advice No. 11 of 2000) Railway Board vide their N o. TC-1/99/214/11 dt. 01/11/2000, have advised that in certain cases, when train engine is used for shunting purposes in the private siding double/multiple locos of incoming trains are also used for such shunting operation although the shunting work can be performed by one locomotive only. For such operation a doubt has been raised whether siding charges be levied for the number of locomotives used or it should be worked out for one locomotive only. Board have decided that wherever shunting operations require only one locomotive and Railway make active use of only one locomotive, siding charges should be worked out by including the cost of one loco only. In case loads cannot be hauled by a single loco in the siding and double or multiple engines are required for handling the load siding charges will be levied by taking into account double or multiple engineers. COM of he Railway should issue necessary instructions in respect of specific sidings. This instruction will come into force w.e.f. 01/11/2000. CALCULATION OF SHUNTING CHARGES (Ref.:Other Railways No. 7/2002 for Rate Advice No. 2/2002) While ‘Siding Charges’ are collected from the siding owners to cover the cost of haulage of wagons between the serving station and the siding, the ‘Shunting charges’ are collected whenever the Railway engine is required to perform any shunting operation inside the siding Premise at the request of the siding owner. The shunting charges are collected based on,  All India engine Hour cost as notified by the Railway Board from time to time  Whether the engine utilized for shunting is ‘Train engine or Shunting engine’  The time taken for shunting

For the purpose of calculation of shunting charges,  No free time is given  When an engine is actually detached from a train for shunting operation and is attached back to the train when the shunting work is over, it is treated as “Train Engine”. In cases where the trainloads or block rakes are carried directly to or from the sidings (Peripheral Yards), such engines should also be classified as “Train Engine.”  When the engine is used to bring wagons meant for the siding on a daily basis, and it is not detained log to the disadvantage of Railway work, it is treated as “Shunting Engine.”

Calculation of shunting time: 1) When the shunting operation in the private portion of Assisted/Private sidings are performed by the Train/Shunting engine, which brings wagons daily for placement in the sidings, the shunting time is calculated from the time the engine enters the private portion of the siding till its return to that point. When the Shunting/Train engine (Steam/Diesel traction) is specially requisitioned for shunting purpose, the shunting time is calculated from the time the engine leave Loco shed of the Depot station till its return to the Loco shed. When the engine (Electric traction) is specially requisitioned for shunting purpose, the shunting time is calculated from the time the engine is earmarked by the shed till it return to the car-shed. 3) 4) 5) The time spent in shunting operations for each day at siding in respect of each party should be taken together. The total shunting time should be rounded off to the next higher multiple of an hour at the end of the period for which the shunting charge bills are prepared. The final figures for which the shunting charge should be rounded off to the next higher rupee.


Contractors are appointed for working the Out Agency.Per hour or part Shunting train engine Rs. 15/12/2001 are as follows: Steam/Diesel traction (BG). Traffic from places not co0nected by railroads is accepted and transported by road to the nearest railhead i.e.110/- Circumstances of shunting Shunting performed by Rs. for onward despatch by rail. CITY BOOKING OFFICE: It is an office opened in various parts of the city to facilitate booking of traffic from such points. the shunting charges should be levied on the actual shunting hours subject to a minimum of eight hours. 6..680/Shunting of Train engine which brings wagons on daily basis Shunting performed by Rs.f. . It caters to the needs of people residing in the locality. 3. The rates of shunting charges w.e. 5. 8.160/- Rs.574/Shunting or Train engine specially requisitioned Rs.6) 7) 8) The shunting charges are leviable for any additional shunting operations performed in the Railway yard. Working of an out agency/city booking office:  A out agency may be worked departmentally or thro’ contractors  The contractor should execute an agreement with rules and conditions for the working of the out agency. for arranging inward wagons commodity-wise before placement at the siding.174/- OPENING OF AN OUT AGENCY /CITY BOOKING OFFICE OUT AGENCY: It is an office opened in place situated away from railway station to facilitate the booking of traffic directly to or from such places. When the engine is specially requisitioned and lit up for performing shunting operation in the Assisted/Private siding. 3. the serving station. 2.870/Rates for Electric Traction (BG) – Per hour or part Rs.

a Security Deposit equivalent to One months’ turnover of the agency should be collected. a bank guarantee equivalent to six months turnover should also be obtained. Awarding of contract & tenure: 1) 2) 3) 4) 5) 6) 7) 8) The contractor to work n out agency should be selected by calling for tenders – ‘Open’ or ‘Limited tender’. to open an out agency/city booking office. etc. no traffic justification is really needed except the availability of suitable contractor. accounting.  Provide an efficient service  Observe the rules ad conditions laid down by Railways for booking. . negotiations. delivery. Rules for working of an out agency: 1) 2) 3) 4) The contractor shall be responsible for the collection if fares and freight charge and undercharges if any. being equal. trucks buses. When the monthly turnover is more than Rs. experience. Refund of freight or any other charges on consignments booked to or from an out agency should not be allowed by the contractor. The contractor shall maintain all such books and forms as may be required to deal the traffic. trained manpower. which can be terminated in case of unsatisfactory service. the contractor may be elected thro. The contract is awarded o the lowest tenderer. etc. of the traffic. To cover the monthly outstanding and to ensure better service. All the outward/inward traffic will be entered in the “Transshipment register” maintained at the serving station and countersigned by the SM and the representative of the contractor. One Lakh.Justificaton to open out agency/city booking office: In fact. The contractor should.  Fully comply with all other conditions laid down in the agreement. in addition to security deposit. When other requisite like financial soundness. If all the tenders are rejected. The contract should be limited to 3 to5 years. availability of godowns. preference may b given to SC/ST tenderer.

Justification for opening a Train Halt: 1) The Commercial department of a Zonal Railway initiate the proposals for opening of train halts.” FLAG STATION: It is a more important train-stopping place than a halt on a railway line. Fare for passenger and charges at the prescribed rates for luggage. There will be no permanent staff. rates only. Coal. parcels and goods traffic over the road portion between the out agency ad the serving station will be collected separately as per the agreement. though no line clear work is done. It serves the needs of passengers from remote villages far away from regular stations. Offensive goods. Explosives and dangerous goods and Arms & Ammunitions should not be booked to/from an out agency.5) The traffic earnings should be deposited either at the serving station or in a nationalized bank as per the agreement and the acknowledged counterfoil of the ensuring remittance note should be sent to F & CAO along with C. Booking of passengers is done by an Agent recruited on contract basis. 3. Goods liable to damage by wet must be packed in waterproof coverings. The maximum weight of any single package should not exceed One quintal in case of parcels and 8 quintal in case of goods. It has just a rail level platform with station name boards at both ends. Selected passenger trains will stop for a minute or two. 4. 5. 2. OPENING OF TRAIN HALT/FLAG STATION TRAIN HALT: A ‘Halt’ is a train-stopping place on a railway line of the simplest kind. It has a station building and permanent staff.R. Perishables shall be accepted at O. If the traffic justifies a train halt can be converted into a “Flag Station. General conditions applicable to the out agency: 1. .R. Note. Also it is provided with a one-way control phone.

The gain should be worked as percentage of earnings on capital invested.per month  12% on the amount exceeding Rs. The contarct is given for a period of 3 years after which fresh contracts shall be awarded. 5) If the percentage of earnings on capital invested is above the minimum percentage prescribed the proposal shall be treated as financially viable. The contractor should execute an agreement in the prescribed form.000/. The existing halt contractor also can apply for the fresh selection.when sales exceeds Rs.per month as under:  15% when sales is up to Rs.per month Tickets can be issued from the train halt.2) The proposal should be  Financially justified  Sound and will fetch additional traffic 3) In working out the financial implications. A security deposit of Rs. The commission is payable to the contractor on the basis for sales of tickets subject to a minimum commission of Rs.  up to the station connecting the mainline in case of branch line halts 6) . 15. Working of Train Halt: 1) 2) 3) 4) 5) The train halt is operated by a contractor selected by a committee of Sr. 15.000/. Otherwise it is not sound and dropped. the following factors are considered:  Capital to be invested  Anticipated net earnings after opening the halt  Annual expenditure  Percentage of earnings on capital invested 4) The annual ‘net earnings’ and ‘expenditure’ should be worked out to ascertain the ‘gain’ or ‘loss’. 500/. Accounts and Legal departments. Scale officers of Commercial. 15. 2000/.shall be collected.000/.

Zonal Railway can consider the closure of such halt wherever the number of passengers utilizing the half is less than 10 per day. In the same way it is also expected that such booked goods on arrival at the destination are to be removed from the Railway premises within a reasonable time. 99/TG-I/Halt/Policy dt.e.  Exiting halts for more than 10 years  Halts having substantial traffic. Circular No. from the interchange points or up to the stations serving the District/Tehsil headquarters in case of main line halts. Upgradation of train halts can be considered in case . (Comml. 100 or more passengers each way daily 2) Both outward and inward passenger earnings should be considered to examine the financial viability. Up to 25 kms.17/10/01) Upgradation of Train Halt in to Flag Station: 1) of. EVOLUTION OF WHARFAGE Goods are brought to the railway premises only with the intention of tendering the same for carriage by rail and it is expected that such goods are to be booked within a reasonable time. Any flag station continuously incurring loss for more than 3 years may be downgraded as Train Halt. 3) A six-monthly review of the working of the flag station/train halt should be done for the down gradation or closure in case of recurring losses. Closure of train halt: If the half is unremunerative and not justified on passenger amenity grounds also. i. 67 of 2001 – No. it may be closed.  Issue of MST/QSTs may also be permitted by CCM in consultation with finance.

In case such goods are not booked or not taken delivery of and removed. It means the charge levied on goods for not removing them from the Railway premises after the expiry of free time allowed for such removal. Circumstances pf Warehousing: Circumstances under which he Railways may have to warehouse goods at any station on behalf of the consignee/owner are as follows:  Goods brought to the Railway premises for despatch but not consigned  Goods received at the destination but not removed from the Railway premises  Unclaimed booked luggage and parcels available for delivery Motivation for non removal: Motivation for non-removal of goods may be on any one of the following circumstances:   Deliberate intention to delay the removal of goods Late arrival of Railway Receipts due to postal delay . 1989. In exercise of these powers the Railway Board may sanction the terms and conditions on which the Railway will warehouse goods or animals at any station on behalf of the consignee/owner. 1989. The levy of charge is justified as per the judgment in the case “PATTIAL Vs NORTH EASTERN RAILWAY-AIR 1960 A II 438.” Wharfage is defined under Section 2 (41) of Railways Act. The levy is legal as it is essential for the efficient working of the Railways that goods should be removed from the station premises as soon as possible. Powers to levy wharface: The powers to levy wharfage have been conferred on the Central Government in case of Government Railway and on the Railway Companies in case of non-Government Railway under Section 39(2) of Railways Act.” To quote in the words of the judge “the object imposing wharfage charges is to be penalize the trader for making delay in taking delivery of goods. the Railway is right in levying a charge for failure to do so.

in case of Metropolitan cities and Notified Stations  Special action taken for disposal of essential goods if not taken delivery within seven days from the day they are made available for delivery Consideration by the Railways in certain cases: While special measures are taken to combat deliberate intentions. Loss of Railway Receipt and time involved in executing the Indemnity Note in lieu of Railway Receipt  Financial and credit facilities i releasing the Railway Receipts from the Bank  Labour problem  Lack of godown facilities for stocking the unloaded goods Adverse effect of non-removal of Goods: Non-removal of goods in time from Railway premises will adversely affects the smooth and efficient functioning of Railways as follows:     Congestion in Railway premises Consequently non-release of wagons and Yard congestion both in the station and adjacent terminal yards Deliberate intention to create artificial scarcity in the market which will affect the nation’s economy Combating deliberate intention: Being a service oriented and Government organization. preventive measures have been contemplated as follows:  Enhancement of rates of wharfage  Application of anti-telescopic rates  Grouping of stations on the basis of quantum of traffic and availability of accommodation  Changing the stations from lower group to higher group  Reckoning of DIES NON days for charging wharfage  Full powers for Zonal Railways to enhance the rates. Railways cannot allow the deliberate intention to create artificial scarcity of essential commodities in the market. Railways consider the cases in which the delay in removal is due to circumstances beyond the control of the owner of the goods. . To combat this tendency.

Rates.e. Charges have been evolved as and when circumstances warranted. plots are allotted at stations near the loading and unloading points on payment of prescribed ground rent where the trading community can stock their goods and avoid payment of wharfage charges. For example. At present the charging of wharfage is not uniform for all commodities and rates differ on the following basis:  Nature of Commodities: → General Goods charged on weight basis → Birds and animals per head basis → Poultry in baskets charged on volumetric basis  Bulk goods are charged at lower rate  Goods received at destination very late (i. the rate was not exceeding one anna per maund or part of the maund per ay or part of a day after the expiry of free time in case of outward and inwards goods. delayed goods) are charged at confessional rate The Wharfage charge for goods traffic is calculated on the following basis: . A notification containing Railway (Warehousing and Wharfage) Rules. In the beginning. either the wharfage charges are reduced or waived keeping the viewpoint of “What the traffic will bear..” In other words if higher charges of wharfage are levied the traffic cannot bear. free time: The levy of wharfage was introduced on a very modest scale in the Railways with the notification dated 3rd July 1902. Calculation of W. and W. 1959 was issued on 28/08/1958 and thee rules are in force as amended from time to time.C. In case of luggage and parcels it was not exceeding two annas per maund or part of a maund per 24 hours with a minimum charge as for one maund or part of a maund per 24 hours with a minimum charge as for one maund. NOTE: Practicability is also taken into consideration. Even though charges are made initially.In such case. The limit of waival differs according to circumstances and also waival is granted at the discretion of officers within their schedule of powers.C. the consignee can apply for remission of wharfage charges.. in case of bulky goods.

Queries Whether Balance free time of 4 Hours (i. The Wharfage charge for parcel traffic is calculated on the following basis:  The weight on which freight charges are levied (i.e. and on the minimum chargeable weight prescribed for the commodity.X dt. 12 hours – 8 hours = 4 hours) shall be Board’s Clarification Yes . X dt. On the actual weight of the consignment.. 200/P/Vol.200/P/Vol. when the goods could not be loaded up to the carrying capacity of the wagon due to their bulky nature. Free time for Goods Traffic: In case of consignments brought to the station but consignment notes are not received. Business hours of the goods shed are prescribed mainly for the monetary transactions.C. In case of goods that are received at the destination and made available for delivery and also in case of goods. the free time is allowed as follows: Goods Made available for delivery on the day of unloading Made available for delivery on the following day Wharfage free time 12 working hours from the time of unloading 12 working hours or up to the closing hours on the day following the day of 1 2 $$ (C. 19/04/2001): Situation Common for both Case Nos. a) b) if the actual weight of the consignment is not known. actual weight or volumetric weight Whichever is greater) W. I & II Working Hours Goods Shed I from 07-00 Hrs.e. 07/12/2000) Working hours relate to hours for loading/unloading including removal of consignment s ad allied activities. Clarifications charging of goods wharfage charges (C. if it is known  On the chargeable weight of the consignment. the free time is up to the losing time of the day on which goods are brought to the station. which are not removed after delivery.

II: Goods available for delivery at 08-00 Hrs. to 20-00 Hrs. 8 Hours It will be counted from 07-00 22-00 Hrs.1: If so from when it will be counted on Goods available for 06/12/2000 i. to 20-00 Hrs. 20-00 Hrs.. 07-00 Hrs. Wharfage shall be shown as Re. In case the goods is removed on 19/01/2001. 12 Hours. Whether wharfage shall be levied on 18/01/2001 for nonremoval beyond free time i.” Wharfage shall be leviable on 18/01/2001 for non-removal of goods beyond completion of free time i.. free time for wharfage shall be more than 12 hours.” Clarification on ‘Working hours’ and ‘Business hours’: a) Working hours & Business hours of a goods shed is from 06-00 Hrs.e. to 22-00 hours) Hr. In such case. Wharfage shall be leviable for detention beyond free time on 06/12/2000 at the rate applicable to “Second Day. (beginning on 05/12/2000 of working hours) or Free time on from 08-00 Hrs.e. i. beginning of working hours. from delivery at 14-00 Hrs.. on 18/01/2001 Free time on 18/01/2001 is from 08-00 Hrs. Case No.. wharfage shall be leviable as applicable for 2nd day. to 20-00 Hrs.e. Case No. 05/12/2000 is from (beginning of business 14-00 Hrs. (i. . However removal shall be allowed only if the party has cleared all Railway dues.e.e.e.Zero in all the relevant columns. as the rate for the first day is “Zero. available on Business Hours is from 06/12/2000 08-00 Hrs. at the rate applicable to 1st day i. 20-00 Hrs. Zero. i..

howdahs and palanquins. W/C Free time on Special kinds of Traffic: In case of carriages. i. to 22-oo Hr. poultry and birds. free time is 24 hours from the time of unloading in case of inward traffic. is a Sunday (i.. The Railway does not guarantee warehousing only in covered accommodation. motorboats. on 15/09/2000. The W/C free time is from -600 Hrs. which cannot be delivered for any cause. Subject to provisions of Sections 84 of Railways Act. to 18-00 Hrs.A consignment is unloaded at 20-00 Hrs. free time is 48 hours from the midnight of the day on which the luggage or parcel is made available for delivery. In respect of animals. but the . Dies – non day) the W/C free time will be calculated fro 10-00 Hrs. b) Working hour is from 06-00 Hrs. on 16/09/2000. If working hours is from 06-00 Hrs. to 21-00 Hrs. A consignment is unloaded at 20-00 Hrs. Responsibility of the Railway in warehousing the consignment: In case of goods waiting for booking they will be at owner’s risk until a receipt has been issued duly signed by an authorised Railway staff. when goods or parcel consignment reaches the destination after more than 2 months from the date of booking the free time is 3 days from the date of arrival including the day of arrival.e. on 14/09/2000 and available for delivery at 10-00 Hrs. free time is 5 hours from the time at which they are received at the destination.. the W/C free time is up to 21-00 Hrs. premises in case of outward traffic. Wharfage free time for Parcel and Luggage Traffic: In case of Luggage or Parcels. Hence W/C free time is given from 10-00 Hrs. Therefore the goods shall be warehoused either under cover or in the open space a may be available. 1989 notice of arrival will be sent when practicable. boats. to 22-00 Hrs..e. motorcars. If 15/09/2000. to 18-00 Hrs on the following day. on 15/09/2000. and Business hour is from 10-00 Hrs. and 24 hours from the time they are brought to the Rly. In respect of consignments arriving at the destination very late.

Railway is responsible for loss or damage up to a period of seven days. B. but the stations. Sunday. Under Section 99 of Railways Act. C and SPECIAL.” This too has exception in the following cases:  Animals. Poultry. NOTE : However the Republic day and Independence Day shall not be reckoned in charging Wharfage. Good Fridays and Christmas days were treated as “diesnon. excepted articles and dangerous goods the responsibility of the Railway s a common carrier is up to the terminztgio0n of transit only and railway accepts no responsibility afterwards. Prior to attainment of Independence of the country. In the case of livestock. Indian Railways introduced the system of treating Sunday as working day at certain notified stations from 01/04/1976 and withdrew the system from 27/04/1977. which is the shortened form the word DIES NON JURIDICUS having the meaning ‘a day on which no legal business can be done. It was levied at the rate of one anna per maund and in course of time many changes were brought into force. Evolution of wharfage charges: Levy of Wharfage charges were stated from 1902. TELESCOPIC SCALE –A. Afterwards no responsibility whatsoever rests with the railway. the responsibility being that of a bailee. or part thereof. per 24 hours or part .Railway Administration will accept no responsibility for non-receipt thereof. Dies-non: “Dies-non” is Latin word.’ This word is used for denoting holidays while reckoning wharfage and free time for wharfage. The rates were as follows: NORMAL: thereof 9 paise per 50 kg. In early Seventies different rates were quoted under heading NORMAL. Birds and Perishable goods  When Railway Administration notifies that Sundays will be working days for the purpose of booking and delivery if all goods and parcels in respect of certain notified stations. s we have seen earlier. 1989 after the termination of common carrier liability.

etc) First 3 days Thereafter Rate per Tonne or part thereof per Day or part of a day Group – I Group . Stone. or part thereof per Day or part of a day Group – I Group – II Group . 3-00 . 2-00 Rs. stations were grouped under I. Further a major change was brought into effect by levying wharfage charges uniformly for Coaching and Goods traffic as described above. 5-00 Rs.III 25 paise 15 paise 10 paise 30 paise 20 paise 15 paise 50 paise 30 paise 20 paise and Bulk Goods (Coal.III Rs. 5-00 Rs. 7-00 Rs. With these changes. Charcoal. Firewood. rates were quoted as below: Non-bulk Goods First day Second day Third day onwards Rate per 50 kgs. 3-00 Rs.SCALE A: 9 paise per 50 kg or part thereof for the first 24 hours 13 paise per 50 kg or part thereof for next 48 hours 17 paise per 50 kg or part thereof for the next 48 hours 9 paise per 50 kg or part thereof for the first 24 hours 13 paise per 50 kg or part thereof for the next 48 hours 17 paise per 50 kg or part thereof for the next 48 hours 35 paise per 50 kg or part thereof for the subsequent hours 9 paise per 50 kg or part thereof for the first 24 hours 17 paise per 50 kg or part thereof for the next 48 hours 22 paise per 50 kg or part thereof for the next 48 hours 35 paise per 50 kg or part thereof for the subsequent hours SCALE B: SCALE C: SPECIAL: 17 paise per 50 kg or part thereof for the first 24 hours 22 paise per 50 kg or part thereof for the next 48 hours 35 paise per 50 kg or part thereof for the subsequent hours With effect from 01/12/1972.II Group . II & III in accordance with the quantum of traffic and accommodation available and separate wharfage charges were quoted accordingly under three major heads for bulk goods and non-bulk good.

5-00 Rs. 0-30 Group – III Re. of part thereof per day or part of a day Group – I Re.I Group – II Group – III .III 38 paise 19 paise 10 paise 45 pasie 25 paise 15 paise 75 paise 38 paie 20 paise and It can be seen that the revision in the upward direction was done to the tine of 50% increase In case of Group – I and 25% for Group – II. 0-20 Re. 8-00 Rs. 1-00 Group – II Re. 0-40 First day Second day Third day and Onwards Bulk Goods (Coal. Stone. etc.0-50 Re. or part thereof Per day or part thereof (Rs. 0-75 Re. 10-00 Rs. Later with effect from 24/01/1981 in case of goods traffic and with effect from 1/02/1981 in case of coaching traffic rates were again revised as under : Non-bulk Good Rate per 50 kgs.) First 3 days Thereafter Rate per Tonne or part thereof per Day or par of a day Group – I Group – II Group .) Group .III Rs. The rates areas under and they are still in force in case of parcels traffic: For all descriptions Per 50 kgs. 3-00 Rs. new rates were introduced in respect of goods or parcels staked in Group – I station lone in ‘Covered Shed’ and the existing rates for Group – I station were retained for goods staked in ‘Open Shed’. 0-50 Re. 0-30 Re. 8-00 Rs. or part thereof per Day or part of a day Group – I Group – II Group . 5-00 Afterwards.The above rates were slightly modified for non-bulk good only for Group I and Group II Stations with effect from 12/09/1979 as under: Non-bulk Goods First day Second day Third day Onwards Rate per 50 kgs. Charcoal. Firewood. 0-40 Re.

per tonne or part hereof per day or part of day for goods in bulk for both Parcels and Goods traffic. Also the rates are prescribed for all the three groups of stations for seven days. 04/12/2000 – Rates w. 10/. Changes I wharfage rates for ‘Goods Traffic’ w. while the rates are not changed for Parcel traffic.: C. The charges are levied at the rate of Rs. The rate are now prescribed for every 100 kgs. With effect from 15/12/2000. X dt. 15/12/2000: Till recently no difference existed in charging of wharfage for bulk goods and non-bulk goods and for Goods traffic and Parcel traffic. as hitherto. 15/12/2000) Rate per Group Quintal or Part of a Quintal Covered per Day or Shed part of day 1st Day Nil nd 2 Day 0-50 rd 3 Day 1-50 4th Day 2-00 th 5 Day 3-00 th 6 Day 4-00 th 7 Day and 5-00 onwards –I Open Shed Nil 0-50 1-10 1-30 1-50 2-00 3-00 Group – II Covered Shed Nil 0-30 0-90 1-20 1-80 2-40 3-00 Open Shed Nil 0-30 0-70 0-80 0-90 1-20 1-80 Group – III Covered Shed Nil 0-20 0-60 0-80 1-20 1-60 2-00 Open Shed Nil 0-20 0-40 0-50 0-60 0-80 1-20 ..f. the Railway Administration may levy a higher rat of wharfage after giving forty-eight hours advice notification.e.200/P/Vol.First day Second day Third day onwards Covered Shed 0-70 1-00 1-50 Open Shed 0-50 0-75 1-00 0-40 0-50 0-70 0-20 0-30 0-40 Higher Rates of Wharfage in Exceptional Circumstances: If any state of traffic warrants or any sudden emergency makes it necessary. or part thereof per day or part of a day on non-bulk commodities and Rs. i. non-bulk.f.e. 5-50 per 50 kg. instead of every 50 kgs. The rates in force now are as follows: WHARFAGE ON GOODS TRAFFIC For goods of all decription. loose or bagged (Ref.e. uniform Wharfage charges are quoted for bulk and non-bulk goods. bulk.

In the same way. The underlying principle to keep the rolling stock moving and to promote optimum operating efficiency is followed by charging demurrage in case of detention to stock. . a charge called demurrage is leviable for the period in excess of free time allowed. Other terms used for detention charges and circumstances: . 1989 gives powers to the Central Government to fix the rates of demurrage and to specify the conditions subject to which the rates shall apply. 1989 as the charge levied for the detention of any rolling stock after the expiry of free time allowed for such detention. as per Section 2 (11) of Railways Act. If not done so. Demurrage is defied.Subsequent days are counted in reference to the “1st Day.the following day of unloading if the goods are made available for delivery on the following day .the day of unloading if the goods are made available for delivery on the same day . All other areas meant for loading/ unloading/stacking of goods will be treated as ”Open Shed.Note: a) The term ‘1st Day” means.” EVOLUTION OF DEMURRAGE When a wagon or a vehicle or a carriage is indented for the purpose of loading or occupation the person indenting it should load the wagon or the vehicle or occupy the carriage within a reasonable time after the placement of the same. or arrival at the destination it is obligatory that a wagon or a vehicle or a carriage is to be released after unloading the contents or after vacation within a reasonable time. Powers to levy demurrage: Section 30 (2) of Railways Act.” b) “Covered Shed’ is a shed having high-level platform and a roof with or without the sidewalls. within the free time.

In certain cases enhanced free time is also allowed now. Demurrage free time: Free time is the prescribed time allowed by the railway to the owner for completion of loading or unloading of a wagon from the time of placement for that purpose. without any charges. depending upon the type of wagon. detention charges in case of reserved carriages and hire charges in case of tourist cards and saloons are also levied when they are detained at the request of the passengers at the starting station. Motivation for detention of stock: Motivation for non-release of wagons in case of unloading may be attributable to the same causes as in the case of non-removal of goods. Hence. the railway has the right of canceling the indent and supplying the same wagon to the next indentor. nature of the commodity. number of wagons placed for loading or unloading by a . This free time was prescribed as NINE DAYLIGHT HOURS in the earlier days. Working hour are defined as the period during which loading or unloading is permitted. enroute or at destination. if necessary on collection of unloading charges. advance arrival of pilot special at the point of interchange to the scheduled Timings Railway’s responsibility to keep the wagon moving: Wagons should not be kept idling indefinitely. In case of wagons ordered but not utilized or detained for a long time it may be due to any one of the following causes:      Labour problem Non-arrival of anticipated stock Cancellation of orders made by consignees in the last minute Bogus registration to get priority in allotment required for loading At sidings.Apart from the levy of demurrage charge. the railway reserves the right to unload the wagons. But the owner can request for detention of wagons beyond the free time paying the demurrage charges due till the time of completion of loading. Later it was reduced to FIVE WORKING HOURS as a general principle. Whenever loading is not commenced within free time in case of wagons placed for loading.

saloons ad reserved carriages.C. No. irrespective of number of BOX wagons) BOX wagons with billets/steel consignments a) 1 – 19 b) 20 and above 5 6 8 5 6 8 9 12 9 12 . there ha been revolutionary change in the pattern of free time allowed for loading and unloading The following pattern of free time was introduced on 1/12/72 and subsequently modified on 24/01/81.19 c) 20 & above (One CRT – ½ BCX) SAME FREE TIME APPLICABLE FOR BCN WAGONS ALSO BOX wagons . no free time is allowed Evolution of Demurrage free time: For the past three decades. the requirement of crane for loading or unloading and the number of unloading points in the sidings. FREE TIME IN WORKING HOURS LOADING UNLOADING 5 5 6 7 9 6 7 10 TYPE OF WAGON 1 2 3 4 All Types of MG wagons Jumbo rakes (Consisting of BCX & CRT) a) 1 – 10 (In term of BCX) b) 11.single owner. The D.  Free time is not allowed I case the wagon supplied for loading is not utilized  In case of tourist cars. free time for various types of wagons is furnished for guidance: DEMURRAGE FREE TIME S.manual loading and unloading (Other than billets and other steel consignments) a) 1 – 10 b) 11 – 19 c) 20 and above (For Mechanical loading/unloading – only 5 hours.

DBKM & KM wagons loaded with other than Billets and other heavy iron & steel consignments a) 1 – 10 b) 11 – 19 c) 20 & above BOX – N wagons a) Mechanical operation (i) 1 – 44 wagons (ii) 45 & above wagons b) Manual operation (i) 1 – 44 wagons (ii) 45 & above wagons 6 8 10 5 5 5 5 8 9 10 10 10 6 8 10 6 7 10 2 2 2’30” 3 2’3” 3 9 5 5 5 5 7 9 5 7 9 8 9 8 10 5 8 10 5 19 9 5 7 9 9 10 9 11 10 11 12 D. RAKES a) 1 – 20 b) 21 – 39 c) 40 and above Wagon loaded with live-stock BOB-R wagons a) 1 – 44 b) 45 – 54 Mechanical operation Manual operation c) 55 and above Mechanical operation Manual operation BTPN wagons and POL tank wagons BG (4 Wheeler) MG (Bogies) 1 – 29 1 . . DBKM & KM wagons loaded with billets and Other heavy iron & Steel consignments a) 1.5 6 7 8 BFK/BFKI and modified BOX wagons a)1 – 10 b) 11 – 19 c) 20 and above C.XVI dt. 22/12/95): .C.19 30 – 45 20 or more 46 or more --BOM-R.10 b) 11 – 19 c) 20 & above BOM-R.C. Free time on Crane Consignments (C.200/P/Vol.

after the expiry of the prescribed free time allowed to such wagons from the time of placement for release at the destination. 200/P/Vol.. The above instructions valid till 30/11/95 are now made valid beyond 30/11/95 without any time limit. which are required to be rebooked. D. even where the commodities loaded are of perishable nature and charged at Coaching rates. 200/P/Vol.C. 15 dt. The free time of 12 working hours should be allowed when a wagon to be unloaded contains atleast one piece whose weight is One Tonne or more irrespective of whether party indents for a Railway crane or utilizes their private crane for unloading the consignment. V dt. 200/I/Vol. if the party requests for rebooking of the wagon. on wagons placed for loading. 15/12/84: In respect of wagonload consignments.C. XVIII dt. demurrage should be levied in the normal way. DCM/PGT J/C.on BCN/BCX (Goods Stock) used for loading of perishable charged at Coaching rates (No. D. when perishable parcels. Board have clarified that free time may b allowed for BCN/BCX wagons as for coaching stock. but not loaded b y the consignor.Sub: Demurrage Free time for consignment unloaded by crane. viz. No free time should be allowed.C. fruits and vegetables are to be loaded/unloaded and demurrage charged at coaching (Parcel) . the demurrage will be levied the entire period from the time the wagon is placed and up to the time of receipt of written intimation of cancellation of indent.C. 11/07/2001): A doubt has been raised that whether the free time allowed for BCX/BCN(Goods Stock) will also be applicable as per free time permissible for goods stock. D. on wagons placed for unloading but the party request for rebooking: After placement of wagon for unloading. 29/12/86 & Excerpts of Sr. C. the normal demurrage free time applicable for the wagon should be allowed only once. but not loaded by the consignor: In case wagons are placed against indent.

. . from 24/01/81. 2. 5 working hours NOTE: 1.rates irrespective of the ft whether the indents are placed by a group of parties or by a single party. i. of wagons 1 to 10 BOX 11 to 19 BOX 20 and more b) single consignor: No. In case loading points have mechanical loading or bunker arrangements for mechanical loading of BOX wagons free time is five working hour irrespective of number of wagons to be loaded.e. Comparative study on Demurrage free time allowed from 01/12/1972 and from 24/001/1981 1) On wagons ordered and waiting to be loaded by consignor or detained for consignment note or otherwise owing to default of or at the request of the consignor: a) single consignor: No. even if one wagon out of a group of two or more is detailed for loading/unloading beyond the prescribed free time demurrage will be levied on all the BOX wagons in the group.In both cases. The entire group of BOX wagons placed for loading will be treated as one unit for the purpose of levy of demurrage charge. of wagons 1 to 10 BFR 11 to 19 BFR 20 and more BOX wagons placed for loading by a Free time in working hours From 01/12/1972 From 24/01/1981 5 5 7 6 10 8 BFR wagons placed for loading by a Free time in working hours From 01/12/1972 --5 From 24/01/1981 5 7 9 c) Other types of wagons.

of wagons 1 to 10 BFR 11 to 19 BFR 20 and more Free time in working hours From 01/12/1972 From 24/01/1981 9 5 9 7 9 9 c) BFR wagons loaded with Billets or other Heavy Iron & Steel materials irrespective of number of wagons – 9 working hours in both cases. of wagons No. 3) On wagons waiting to be unloaded by a consignee at stations where there is no crane facilities ad containing heavy consignments of atleast one piece whose weight is one tonne or more. the demurrage will be levied on all BOX wagons. NOTE: i) ii) Iron N Steel materials shall be considered as heavy if a single piece or package weighs 7-5 quintals or more.2) On wagons waiting to be unloaded by the consignee: a) BOX wagons loaded with ay commodity other than Billets or other Heavy Iron and Steel materials placed for unloading by One consignee: Free time in working hours From 01/12/1972 From 24/01/1981 1 to 10 BOX 5 5 11 to 19 BOX 8 6 20 and more 12 12 b) BFR wagons loaded with commodities oth3er than Billets or other Heavy Iron & Steel materials placed for unloading by One consignee: No. The entire group of BOX wagons placed for unloading will be rated as one unit for the purpose of two or more wagon are detained for unloading beyond the free time. Free time is 24 hours for all types of wagons from 01/12/72 and there is no change from 24/01/1981. .

with no change from 24/01/1981. nature of commodity loaded or unloaded and classification of stations. of wagons 1 to 10 wagons 11 to 19 wagons 20 to 40 wagons 41 to 70 wagons Above 70 wagons Free time in working hours From From From From 01/12/72 24/01/81 01/01/84 15/01/84 5 5 6 6 8 6 6 7 9 (Above 12 9 9 20 wagons) 12 9 10 -12 9 11 -- Principles of Rating of Demurrage Charges Even though the rate of demurrage has been modified from time to time it is applied uniformly irrespective of type of wagons.4) The free time is only 5 hours in case of all other types of wagons for loading or unloading. in terms of . 01/01/84 and 15/01/84 as follows: a) On wagons placed at a time for loading by a single consignor: No. there have been major changes from 01/12/72. DEMURRAGE FREE TIME ON JUMBO RAKES: In the evolution of free time for Jumbo rakes. 24/01/81. of wagons 1 to 10 wagons 11 to 19 wagons 20 to 40 wagons 41 to 70 wagons Above 70 wagons Free time in working hours From From From From 01/12/72 24/01/81 01/01/84 15/01/84 5 5 6 6 7 6 6 7 9 (Above 10 8 8 20 wagons) 10 8 9 -10 8 10 -- b) On wagons placed at a time for unloading by a single consignee: No.

10/. Republic day and Independence Day are not treated as DIES NON for either charging or allowing free time. The rates for 6-wheeler or Bogie vehicles will be at 1-5 times and 2 times that of 4-wheeled vehicles respectively).. 5-50 per tonne or part of a tone. Evolution of demurrage charges D. charges are levied at the prescribed rtes on per hour or part of n hour basis. Owners should load or unload the wagons or coaching vehicles on all days.per hour or part thereof per 4-wheeled B. respectively instead of the common name DEMURRAGE CHARGES USED IN OHER CASES.traffic dealt ad availability of accommoda5tion of warehousing.e.C. In case of coaching vehicle not marked with carrying capacity (other than passenger vehicles). on all wagons except Vegetable Oil Tank Wagons: From 1902 From 1970 . vehicle and Rs. per hour or part of an hour in respect of both goods wagons and coaching vehicles. Enhanced Rate of Demurrage: In case of emergency. tourist cars/Saloons reserved for the convenience of passengers and not availed of.” per “hour or part of an hour” on the marked carrying capacity of the wagon. Basis of Rates: Demurrage charges are levied on the basis of “per tonne or part of a tonne.G. vehicle shall be levied for detention beyond the free time (i.G. charges are levied at the presc4ribed rates and these charges are called ‘Detention charges” and ‘Hire charges. 5 working hour).per 4-wheeled M. In case of carriages. a demurrage charge of Rs. Loading and unloading to be done on all days: Sundays. However n exception has been made in the case of vegetable oil tank wagons. a higher demurrage charge of Rs. In case of reserved carriages. Tourist cars/Saloons detained at the starting station.5/. enroute of destination at the request of the passenger. shall be imposed after giving 48 hours notice on the intention to do so.

or. 5) For Conventional Covered wagon rakes (BG 4-wheeled).One anna First 12 hours Next 48 hours Onwards - 6 Ps. 7) These exceptions will not apply to: . 3) The free time is allowed according to the number of wagons and type of wagons. 6) Exceptions: Group Demurrage will not be levied on the wagons. enhanced free time is given for loading and unloading. First 24 hours Next 24 hours Beyond 48 hours Demurrage Rates with effect from 01/12/72 12/09/1979 24/01/1981 15/10/1992 0-25 0-38 0-0 1-00 0-30 0-45 0-80 1-50 0-40 0-60 1-00 2-00 D. GROUP OF DEMURRAGE 1) Under Group Demurrage scheme.  Used for back-loading.  That can be removed in one shunt without disturbing other wagons under operation. 2) All the wagons placed t a time are treated s single group for this purpose.  Actually drawn out and despatched. on Vegetable Oil Tank Wagons: Demurrage Rates with effect from 01/12/72 12/09/1979 24/01/1981 15/10/1992 0-60 0-60 1-00 2-00 0-60 1-00 2-00 3-00 0-60 2-00 3-00 4-50 First 24 hours Next 24 hours Beyond 48 hours Note: In calculation of D.C.. which as released within free time and. if even a single wagon is detailed beyond he allowed free time.C. 10 Ps. 20 Ps. any fraction of a rupee shall be rounded off to the next higher rupee. or. group demurrage will be levied only in case of unloading. then Demurrage charges are collected for all the wagons in the group. 4) However.

etc. demurrage charge due for all those wagons. The outstanding will be cleared through ‘Remission Order’ issued by the Sr. which will guide the Sr. In cases other than O-en delivery/Assessment delivery. will be collected from him. the waival of wharfage/demurrage can be considered on the following: . 9) The party who has detailed his group of wagons to the maximum extent is responsible for detention of the entire wagons in addition to his own group. Further. DCM. Though the wharfge/demurrge charge is waived it should be accounted in the station records and kept as outstanding. Single consignee rakes  Conventional covered wagon rakes placed for unloading (CC rakes)  Rakes under Closed Circuit movement (Green Arrow. WAIVAL OF WHRFGE AND DEMURRAGE Waival of wharfage and Demurrage charge is permitted on request from the owner of the goods on proper grounds. duly deducting the demurrage charge collected from other parties. Also wharfage can be waived in case of open delivery or assessment delivery when granted after the date of request for the same. 10) Hence. each party is responsible for the group of wagons allotted to him.) 8) When the wagons placed for loading/unloading are due to different parties. the charges can be waived only on party’s request followed by the para-wise remarks put up by the SM of the station where the traffic is dealt. Rockets. DCM should contain the actual facts regarding delay in removal of goods from wagons/railway premises. 11) The enhanced free time will be given and group demurrage will be levied irrespective of whether the goods are charged at wagonload rate or trainload rate. DCM in judging the constraints experienced by the party in loading/unloading/removal of goods within the permissible free time.. In such cases the wharfage is waived up to the date of open delivery. The para-wise remarks submitted to the Sr.

leading to detention to other wagonloads and imposition of operating restrictions on this account. if any.10) 11) 12) 13) 14) 1) The need to sustain and attract traffic to the Railways and to assist in marketing efforts.000/- . 7) Whether the circumstances under which the wharfage or demurrage charge accrued were really beyond the control of the consignor/consignee.00. Bunching arrival and placement of wagons as distinct from normal quantum of traffic at regular intervals. Railway’s liability to deliver the goods on indemnity note for want of booking particulars due to non-receipt of thro’ invoice for labels in the wagons. DC in deciding the case judiciously. 5) The cause for delay in unloading or taking delivery of goods and justifying circumstances. 4) The extent of delay in transit.1. 2) The nature and value of goods in relation to the freight. Other Commercial and Financial considerations including customer relationship with firms/sidings offering large volume of traffic. Labour Strikes. wharfage ad demurrage dues – If the goods are not taken delivery due to heavy demurrage/wharfage. considering the above factors to guide the Sr. consequently Railways have to dispose the goods through public auction and the amount likely to be recovered through such action to be compared in this case.000/. riots. 3) The extent of damage or deterioration the goods might have suffered affecting the values of goods. 6) The local conditions at a particular station.1. 8) The size and capacity of goods shed and it’s vulnerability to congestion if the goods are not removed. Powers of Officers to waive Wharfage /Demurrage charges Designation of Officer General Manager AGM/CCM/COM (Principal HODs) Wharfage (Per Demurrage Consignment) (Per Wagon) Full Powers Full Powers Rs.00. curfews or other similar abnormal situations over which the consignor/consignee has no control. The para-wise remarks should be prepared on the party’s application for waival. 9) The capacity of goods shed/siding for dealing the traffic within the prescribed free time. general bandhs.Rs. Delay in granting open delivery/assessment delivery.

Head quarters and the Division are implemented through the stations and are availed by the customer in a satisfactory manner. It follows that the orders emanating from various levels have to be faithfully implemented by the human agency deployed at stations. 750/- 1. Cases submitted to GM for waival/refund/write off of D.25. 3. .000/Rs. Rules and regulation alone are not to be followed but also conventions and practices are also to be adhered to as and when required. The Inspectorate organization has to act as an interlink between the toplevel executives and the lower rank staff for assisting and maintaining the implementations.000/Rs.000/.20.C. which they have in the day-to-day working.000/Rs.25.Q. For waivar of wharfage/demurrage above Rs. 4.000/Rs.000/Rs. 3.25. 2.prior finance concurrence is required.C.000/Rs.. If the party wants to prefer an appeal to the H. It is also important that where there is an error due to pressure of work it should be rectified without any loss of time./W.500/- Rs.000/Rs. 1. They should have a thorough study of the areas covered in the inspection.Q. The important aspect of an Inspector/Supervisor is to understand the human being who is at work. The power for waival of wharfage charges in case of trainload consignments are applicable on ‘per wagon’ basis (since one RR may be issued for more than one wagon). the goods must be delivered duly collecting all the charges due as per the decision taken by the Divisional authorities before forwarding the appeal to the H. 3...20. This is essential to avoid delay in delivery and further accrual of the charges. should be routed through FA & CAO. INSPECTION – AIMS & OBJECTIVES The primary aim of the Railways is to ensure that the policies programmed by the Railway Board.000/Rs. The understanding should cover their local difficulties and there must be sincere attempt to solve the problems.CCM/COM/DRM (SA Grade) ADRMs JA Grade Officers Senior Scale Officers Assistant Officers Note: Rs. 6. 6.

which reflects the accountal of work done. It does not endeavour to prescribe mere instructions to follow but it leads to check the irregularities but proper practice of the personnel involved an to provide ample evidence before the Officer for taking proper decision for the development of traffic. The approach towards understanding the human problems should b failed and should not be to give false expectations. It is to be seen that such documents are properly maintained and stored for future reference. It is to be seen that there is no misunderstanding between the officers and staff. The Inspection need not be in faultfinding attitude but should be in exhibiting the ignorance of rules on the part of the staff and their regulation. the possibilities of arresting wastages of men and materials an the provision of amenities to the travelling public apart from Inspection of documents. The shabbiness in the maintenance of records reflects certainly on the weaker aspect of n ad carelessness. All irregularities noticed should be recorded with instructions and suggestions in the Commercial Inspection Book of the station. COMMERCIAL INSPECTION . I is where a lot of slackness is shown to undermine the principle of Inspection. Moreover an inspection report should be made over and placed before DCM for further action.The Inspector/Supervisor should certainly find ways and means to ensure that the service rendered to the customer is satisfactory and the staff is equipped fully to meet the demands of the customer satisfactorily. analyzing and appraising the potentials for increasi9ng the earnings of the station. The action taken at the higher level need not be in punitive manner but it should be an authentic note to give impression on the station staff that the Inspection has to be taken serious note of. Lastly the Commercial Inspection by an large differs from other Inspections such as Inspection of Accounts. The good maintenance of records gives an idea about the efficiency of the staff working at the station. The very purpose of Inspection will be made futile if the points raised in Inspection notes are not effectively decided by the officer without loss of time. Inspection on stocks and supply and Inspection of construction. The Commercial Inspector/Supervisor goes to the length of studying. The primary function of the Inspector/Supervisor should b to remove such negligence depending upon the circumstances. Inspector/Supervisor should pay sufficient attention on he documents preserved at the working spot.

report in the prescribed form with questionnaires will be answered by the Officer. Surprise Inspection has a vital role to play on the weakness of human being.The prime objective of commercial inspection is to find out the variation between standard performance and actual performance and to initiate remedial/preventive measures to ensure the performance at the required standard. Kinds of Inspection: The Inspection process is divided into:  Detailed Inspection  Casual Inspection  Surprise Inspection A detailed Inspection tries to understand the basic working of the station and evolve recommendations for improving the working. The reports will be made in a manuscript for to DCM. If any other report s necessary it should be made separately. . Surprise inspection can be done at any time. Casual Inspection shall be done as frequently as possible. Under special circumstances the period may be fixed as once in six months for certain stations. The utility of commercial inspection lies not only in the detection of lapses and irregularities committed. On completion of periodical inspection. Casual Inspection would look into the matters of current relevance and on the matters where failure has come to light in the normal working. in a brief and specific manner. But the inspection by the Supervisor should be a continuous process of doing the throughout a month. The surprise Inspection on the other hand is essential to give the necessary shock treatment to the human agency so that alertness is ensured and antisocial activities are prevented. The periodic inspection by CMI is in every quarter. not less than 4 inspections in a month. The Supervisor should work out a roster of inspection for himself fixing as to how he will distribute the various items to be inspected during the course of one month. The staff should be counseled then and there with regard to correct way of doing the job. The inspection by Officers and Inspector will be periodic and at specified interval of time. One surprise Inspection can be done by reaching the spot by road. The periodic inspection of important Stations by Officers will be normally once in a year. but also in the steps taken to avoid their recurrence.

MAINTENANCE OF TARIFFS.. 2. Catering establishments. Parcel Office.. Distance tables ad other reference books are kept updated with correction slips duly pasted. Whether complaint and suggestion book is kept within the reach of the customers. 5. Parcel Offices. Retiring Rooms. Brief guidelines for such inspections are given below: STAFF: 1. . Whether high standard of cleanliness and orderliness is maintained at Platforms. Waiting rooms. 6. GENERAL WORKING: 1. Reservation Office and Catering Unit. RECORDS. and circular properly an up to date. Whether the existing staff strength is adequate or more for he level of traffic handled. Whether all the staff have declared private cash in the PCDM. General working of a Station. 3. etc. 2. 4. ETC: 1) Whether the Tariffs. Whether staffs are fully conversant with rules and whether they maintain rulebooks. toilets. Whether the graph of earnings is properly updated and displayed.INSPECTION – AREAS: A Target will be fixed for each inspection on the area of inspection viz. Booking Office. Bath rooms. Manuals. Whether furniture for staff and steel up boards for records and chests are adequate and modern. performance of a Goods shed. 2) Whether Rate circulars and Draft notifications are correctly received and notified to the staff under acknowledgement. Rate tables. Whether all the staffs are in the prescribed uniform an prompt. courteous and alert. Booking Offices.

3) Whether action is initiated on missing invoices if any.3) supervisor. Whether the ICV books are certified by the 4) Whether money value books are kept under safe custody and the stock is correct as per the stock register 5) available. Whether sufficient stock of consumable stores INSPECTION OF GOODS SHED Booking of consignments: 1) 2) 3) 4) 5) 6) 7) 8) 9) 10) 11) 12) Whether the indents are registered as per Priority Schedule. etc. . Delivery of consignments: 1) Whether all the invoice are accounted. 2) Whether “Inward Invoice Index register” is properly maintained. re properly exhibited Whether entries are properly made regarding refund/forfeiture of WDR fee Whether the “Outward Invoice Index register” is correctly maintained Whether the Forwarding notes are obtained duly filling up all the columns correctly. Check for issue of Railway Receipts immediately after completion of loading. Check for entries on placement of wagons and completion of loading. immediately on receipt and checked for their correctness. allotment of wagons. Check for any mis-declaration with the available booked goods. 4) Check whether placement and unloading time are properly recorded and demurrage charges are levied properly. Check for dalals to ensure whether the dl fees are promptly collected. Check whether plot rent is promptly collect from the allottees ad no encroachment is made by them. Check for working condition of weighbridge if available. Whether notices regarding restriction. The placement memo should be crosschecked for correct realization of demurrage charges due if any.

Damage & Deficiency Register and Reweighment Register are maintained properly. Whether the Sunday Stock Register is minted ad the inventory of goods is properly taken. Whether Common Carrier Liability register.R. Vehicle Removal Memo and Delivery book to ascertain the correctness of entries. Release memo. Whether steps are taken for connecting the unconnected goods by informing N. Check in respect of disputed debits.R. Cross examine the entries by linking the Placement memo. Check the ground stock with Sunday Stock Register to ascertain the correctness. Loading/Unloading register. Check whether registered notices are issued in respect of undelivered goods. Submission of returns: 1) 2) 3) Whether all the returns are submitted on the due dates. Whether entries are properly made related to unremoved goods after effecting book delivery.6) 7) 8) 9) 10) 11) 12) 13) 14) 15) 5) Check whether delivery books are properly maintained with all relevant columns properly filled in. Whether Error Advices are correctly accounted and follow up action taken. cell and for disposal of undelivered goods. Outstanding: 1) heads. Whether book delivery is effected on collection of R. Whether balance sheet is submitted on the due date with all it’s enclosures. Scrutinise the outstanding under various . Number Taker or Position book. 2) 3) 4) 5) Check whether staff responsibility ha been fixed on admitted debits. and charge due for the traffic before removal of goods. whether the reasons for dispute have been advised and follow up action taken. if it is in force. Check whether remission order is due on Wharfage/Demurrage charges waived. if any. Whether collected Railway Receipts and Indemnity notes bear correct endorsement ad kept properly. Whether gate pas system is followed correctly. Whether account foils of invoices submitted on the due dates.

3.D. Inspection with claims prevention approach: 1) Check for proper Packing. if any. Labelling and Marking. messages on damaged goods. 4) Check for collection of R. Sidings: 1. 2.R. Check for realisation of demurrage from transshipment contractor wherever necessary. c) Procedural lapses n granting O. Check for prompt clearance. Transhipment Sheds: 1. 6) In case of D. 3. 3) Check for the proper maintenance of registers for despatch of goods. 4. messages. 10) Disposal of unclaimed goods and undelivered goods in time duly observing rules in force. if any.s and declaration of value of goods.D.D. Whether all charges due for the traffic handled t siding are promptly collected. Check for proper maintenance of transshipment register.R. Whether siding vouchers are properly maintained with all relevant details.G. if defectively packed. 5) Check for proper issue and accountal of gate passes.s or indemnity notes at the time of delivery. 8) Check for observance of monsoon precautions. Whether the siding charges due are promptly collected. 2.D. 2) Check for the protective remarks in the R. 9) Check for condition of Goods sheds/Transshipment sheds. . check for the following: a) Date of unloading ad date of application for open delivery b) Delay in granting of O. report 7) I case of JSRs. Check for defective packing endorsement in the Forwarding note and R.6) Whether the bank remittance of station earnings is promptly done by the staff. Check for issue of D.R.. & D. check for the following: a) Issue in time b) With factual information c) With proper words d) Compare the entries with M.

4. Analyse the commodity-wise traffic trend for the past 4 or 5 years for taking corrective action. Whether the random check of tickets is done by the Supervisor daily to cover the entire tubes within month. Whether shortage in cash if any is made good immediately. Whether the booking windows are opened in time. Check the movement of individual commodity to see whether any noticeable shift in the traffic and earnings. BOOKING OFFICE. MANUAL RESERVATION OFFICE. 7. 9. 8. Whether timetable and fare list re exhibited. 2. Check for possibility of forming trainloads by combining traffic offered to different destinations. 3. Whether the crowd is cleared quickly and by following queues. 5. 2. Whether ticket estimate is properly maintained and Indents for tickets are submitted time. 5. Whether there is a sufficient lighting arrangement. Whether date and time is made both in application and in the Reservation register with serial numbers Skipping of entries in favour of certain persons without remarks in the application form Whether waitlisted passengers are getting confirmed reservation according to priority against released quotas . 3.Inspection with Marketing approach: 1. Check for adequate terminal facilities to handle the traffic existing. 1) 2) 3) 4) 5) 6) 7) Whether the indication boards exhibit the current availability of reservation Whether unscrupulous parties are standing in the queue Whether the staff describes private cash Whether the Reservation is made by issuing tickets or blocked without issuing tickets. 6. 1. Whether the current rate of fare is being marked before issue of tickets. Call for potential customers/firms available to maintain interaction to attract/improve the traffic. Whether the handling over and taking over of cash between booking staff and SM are certified in words and figures. Whether ticket chest is cleaned and dusted. 4. 10.

4. 7. 3. 2. Whether all the Microprocessor based machines and printers are in working condition. PRS CENTRE: 1. stationery. etc. Whether the supervisor keys are kept under safe custody Whether the part rolls of tickets are secured safely Whether hard copies of shift data are preserved safely Whether stock of consumables like. 8. service wear clean and tidy uniforms together with badges Whether the kitchen. 5. is available Whether part rolls of tickets are kept under safe custody Check whether charts are prepared and exhibited in time Check whether sufficient stock of consumable stores and spare systems. licensed porters. are available as per norms CATERING AND BOOK STALLS: 1) 2) Whether persons engaged in catering and vending. is adequate Whether the machines and printers are maintained without dust Whether the defects in the machines and printers are promptly reported and follow up is taken by the supervisor Whether the staffs are conversant with the emergency steps to be taken in case of failures. reservation forms. Whether all the machines and printers are in working condition Whether sufficient stock of COPT. 4. printers. 2. 6. ribbon.8) 9) 10) 11) 12) Whether reservation chars and the reservation register tally Whether the cancellations of reservation and refund made are acknowledged by the party and whether they tally with the entries in cashbooks and statements Whether messages for onward reservations and return journey reservations are sent without delay Whether tickets are reserved by routs. etc. etc. 5. storeroom and dining hall are kept clean . 3. constables and stall holders Whether addresses given on requisition are correct BOOKING OFFICE PROVIDED WITH ‘SMART’: 1.

whether the customer reactions today toward the Railway in favourable. the concept of inspection is modified to improve the knowledge in the following aspects: . The Inspector/Supervisor’s role is further changed to act a idle managers in the main ream of development of the traffic in Indian Railways under Corporate Plan. He is expected to associate himself with the customers to understand their needs and to appraise the Officers for making right decisions to the satisfaction of the customers. If not. In choosing the mode of transport the customer is guided essentially the efficiency factors-which mode of transports. air or waterways gives him the maximum satisfaction. whether road.3) 4) 5) 6) 7) 8) 9) 10) 11) 12) Whether edible exhibited for sale are kept in hot cases or in glass cases or with wire mesh covering Whether the quantity and quality of foodstuff and beverage are as per the standard prescribed by the Railway Whether price list is exhibited Whether articles other than the prescribed items are sold Whether the bearers are medically examined and certified by the DMO Whether the bearers are having police verification certificates Whether the manager in case of contractual staff is present during the working hours of the unit Whether the number of servants employed by the contractor is not exceeded and they are present Whether the contractor restricts himself to the accommodation provided by the Railway In case of bookstalls whether obscene or banned books or periodicals are sold ADVANCED APPROACH TO STATION INSPECTION The Railways in recent past is deeply involved in the process of profitable sale of Railway transportation and a customer oriented service. The Railway should therefore function essentially on efficiency and economic operation and what is much more important is the customer satisfaction. rail. it would be necessary to identify the causes of shortcomings in the services of Railway in the various areas of inspection. Having this policy decision of the Railway in mind. He has to equip himself with the knowledge of identifying the shortcomings in the various areas during inspection. The Inspector/Supervisor has to assess in the first place. In the advanced approach. the inspection should have an advanced approach.

The Railway Board is ore interested in knowing the trend of earnings for the Indian Railways as a whole. An analysis is made for revealing he causes for such fluctuations. 1999-2000 2000-01 2001-02 367 454 725 53. The cause of such increase is attributable to specific reasons. The Gross earnings of a particular station in the passenger and parcel traffic at a station for six months is given below to study the rend of earnings: . The Gross earnings of particular station for three years in goods is given below to know the trend of traffic an earnings: Traffic handled Loading of wagons (in 4-wheelers) Weight carried (in Tonnes) Gross Earnings in Rs.63. foe example heavy harvest of paddy in the current year and movement of that commodity by Rail at the station.292 3. The graphs are prepared from the basis statement called “TRI-MONTHLY STATEMENT OF ADVANCED GROSS EARNINGS and the traffic handled.667 2. when compared with the figures of previous three years.612 1.885 The upward trend in all the three aspects shows clearly the increase in goods traffic. This statement is more useful at the time of presentation of the Budget by the Railway Minister in the Parliament.” The earnings particulars are compiled. In order to have such analysis the commercial statistics is maintained at stations and exhibited in the form of bar chart or line chart (graph) in each station.014 5.56.     Trend of earnings Methods of improvement in earnings Methods of arresting expenditure Possible loopholes in Railway Possible service improvement & User amenities TREND OF EARNNGS 7 METHODS FOR IMPROVING EARNINGS The trend of earnings of particular station is identified by the fluctuations in earnings in year.885 65. 15th and 25th of every month. checked and despatched to the DCM as PCDO (Periodical Confidential Demi Official Report and to GM (S) through SN-2 and SO-24 statements. A telegraphic report is sent to the Railway Board by the Head quarters office on 5th.88.05.

Extended working hours. Quick frequent services should be introduced.598 There is a downward rend in his station with regard to passenger and parcel traffic.293 321 6. the abnormal delay to trains on any other reasons than accidents should be brought to the minimum. A sustained attention should be given for improving reservation facilities with a view to reduce the queue length and the waiting period for passengers.147 1416 11. Running of parcel express trains on strict schedules may . Methods of improving earnings: The following areas may be studied to improve he earnings of a station or division or Railway. The increasing demand can be met by recommending additional coaches for unreserved passengers.209 484 15. of Earnings Tickets (Rs) 3170 13. special trains may be arranged to improve the earnings. To create dependability.242 2196 11.645 59 19.662 278 5.541 Parcels Weight (in Earnings Qtls) (Rs) 498 10.688 309 6. opening of additional counters and increasing quotas for reservations can be recommended if warranted.Month & Year October November December January February March 2001 2001 2001 2002 2002 2002 Passenger No. to the DCM for necessary action. for unreserved passengers in second class. The main factor in regard to customer satisfaction is the dependability of the service and the schedule.647 2266 12. Most of the express trains have a few coaches only. Bulk of the log distance passengers prefers express train. In the matter of parcel traffic even a single parcel should not be refused. In such cases when the earnings have been declining at the station the Inspector/Supervisor should send a report with reasons thereof and also with remarks for remedial measures if needed. The long distance express train should be attached with required number of parcel vans. The cause in the fall of earnings is attributable to cancellation of a passenger train in the section and reluctance of fish merchants in booking to long distance stations since there was a restriction in loading fish the express trains.738 2334 12.114 2401 11. During various melas.

sulphur. It would fetch reasonable earnings. A special drive can be made to check whether special type wagons are indented for loading of these commodities instead of using general service wagons. Mechanical and Traffic departments. 3) The railway incurs heavy expenditure in wagon repairs due to continuous loading of corrosive substances such as salt. super phosphate. etc. Wherever necessary. the Supervisor should recommend for such cases. coal. if it is felt that the imposition of wagon demand registration fees and forfeiture on account of cancellation of demands or non-compliance of minimum weight condition stand blockage to attract customers necessary report may be sent to DCM to get permission for advance stacking of foods in the Railway premises free of charge. Personal contact of customer by Inspectors/Supervisors may help to know whether better revenue by introduction of these services can be earned. This is mainly due to avoidance of marshalling enroute. The main factors for such heavy expenditure are higher cost of handling due to barging power of labour force. 5) As a measure of economy it has been decided by the Railways to close down the stations in un-remunerative branch lines. engine usage and unproductive fuel consumption can be curtailed with the coordination of Commercial. higher speed. Apart from this. wagon detention. lesser repair and lesser claim. In the matter of goods traffic. . the commodities that are moving by road can be attracted by way of quoting station-to-station rate between pair of points on specified commodities. QTS can be introduced in the station if there is assurance of traffic from the customers. better utilization of suggested taking into account the needs of the section. Arrangements should be made to canvas industries to offer goods in block rakes. 2) The expenditures on account of running of block rakes are likely to be les than the moving of piecemeal wagons from yard to yard. fuel consumption in frequent shunting and wagon detention. 4) Another important factor affecting heavy expenditure on Railways is the cost involved in transhipment of consignments from on gauge to another. With a view to compete with the Road haulers. Wagon Usage: To eliminate waste in expenditure the following measure may be taken in stations: 1) The various improper wagon usage.

Col. The schedule of timings. 1) Train examining staff declares empty wagons s unfit for loading to void the forfeiture of registration fee when parties fail to offer goods for wagonloads 2) Merchants are allowed to book their consignments on misdeclaration to avail lesser rate . HSD oil.Loop holes in Railway Revenue as whole: The Railways as a whole today have dimmed in their image in financial position for two reasons:  They could not compete very successfully with road services in passenger traffic  The fares and freight rates have not been increased on par with the increase in operating cost Competition of Road Traffic: The Railways are expected to operate not only as a commercial entity but also in terms of wider economic and social interest. etc. The loss incurred in such public service is termed as SOCIAL COST. Loopholes in Station Revenue: The loopholes in station earnings can also be analysed in the following lines: Corrupt practice of staff and Frauds committed by merchants – The trades and intermediate handling brokers make the staff do favours out of the way paying bribe to avoid heavy penal charges which adversely affect the railway earnings in some way or other. machinery. The increase in fares and freight rates lagged considerably behind the increase in price levels of major inputs required by the Railways. Hence the possibility of losing revenue in passenger traffic is reduced. While fare and freight rates are considerably lower the gap between increase in the price level and the railway fares and freight rates is widening and reflects in the deficit budget. For example. It is possible that the prices of major inputs of railways such as. routs and rates of charge are processed without major hindrance to the state transport corporations and railways. In order to avoid wasteful competition between roadways and railways the Ministry of Transport has drawn up the system of railroad co-ordination. Transport equipments. are considerably high. Iron & Steel.

The load traffic has to inherent advantage of:  Door-to-door service  Flexibility in quotation of rate  Supply of trucks depending on the demand and supply position in the market  Quick transit time The overall share of Railways in the country’s total transport has declined year after year as follows: . road links were developed throughout the length and breadth of the country and this resulted in gradual diversion of rail traffic to road. with inflated figure to obtain more compensation 5) Placement and release timings of wagons are manipulated to avoid demurrage charges Frauds commodity by public independently: Member of the public may commit frauds in the following manner: * Forged paper tickets in passenger traffic * Forged Railway receipts in Freight traffic Frauds committed by staff to misappropriate cash: Staff may commit frauds for the purpose of misappropriating cash adopting the following ways * Alteration of fares in paper tickets * Alteration of figures in records (connected to cash) * Alteration of figures in record (connected to refunds of passenger fares) * Resale of collected tickets * Issue of bogus paper tickets To avoid leakage of revenue through such loopholes. With the priorities given under Five Year plans.3) Goods are booked o under weighment to save heavy cot of freight charges 4) Exaggerated messages are issued for damage by wet etc. MARKETING AND SALES ORGANISATION Indian Railways were monopolistic till lat sixties ad afterwards they started to feel the pinch of competition from road transport. the Inspector/Supervisor should effectively inspect the traffic transactions take place in the stations.

51 1996 – 97 Freight Rail Road 89% 11% 40% 60% Passenger Rail Road 80% 20% 20% 80% This situation arising from such steep competition from road transport made it essential for the Railways to revitalize the existing machinery for retaining or capturing the high rated traffic. To meet the challenges ahead. the Railways set up the Marketing and Sales organization in the year 1967. The Marketing & Sale organisation: Railway Board level Headed by Executive Directors for Passenger Marketing and Freight Marketing under Member (Traffic) Headed by CCM (PM) & CCM (FM) and assisted by Marketing Inspectors Headed by Inspectors DCM & assisted by Commercial Zonal level Divisional level Station level - Headed by SMR and assisted by Commercial staff Functions of the Marketing organisation: The objectives and functions of the Organisation are.       To retrieve the lost traffic in high rated commodities To monitor the trend and earnings of traffic To initiate measures to secure more traffic To maintain close liaison with traders ad industries To undertake marketing research To plan and provide inter-model services combining the advantages of rail a road In order to capture the traffic and compete with the road sector and to encourage the freight traffic the following measures have been adopted from time to time: .Year 1950 .

Under ‘Mobile Booking Service’ the intended party should inform over phone about the details of traffic to be booked and the place from where the goods to be collected. If goods are not made available for delivery at the destination within the stipulated time. Under this system goods available for outward despatch are collected from the consignor’s premise by a contractor appointed for this purpose. Street collection and Delivery service: To capture the lost traffic due to non-availability of door-to-door facilities. The transit time is notified between individual points. the charges will not be collected. Under ‘Quick Transit Service’ (QTS). this service was introduced I the Railways. On receiving the information the staff will go to the party’s godown and accept the goods by issuing Railway Receipt duly collecting the charges due. The consignments so collected should be made over to the Railway staff along with forwarding notes duly executed by the senders The Railway Receipt will be handed over to the sending through the contractor.2 to 6 were introduced to match the services available in the road transport and they were called “Five Star services” Out-Agency and City Booking Agency/Office are maintained to encourage the traders and industries available in the far away places from railway station to despatch their traffic through railways.1) 2) 3) 4) 5) 6) Out-Agency. The road transport is . Separate charges will be levied for the road portion of the traffic. City Booking Agency/Office Street collection and delivery services Freight Forwarder Scheme Quick Transit Service Mobile Booking Service Container service Item No. This service is available only between notified stations. A separate surcharge of 5% of the freight is levied and shown in the Railway Receipt as’ To-pay’. etc. which is the prime adv advantage of roadways. a separate charge is levied for the road portion of the traffic. In addition to the freight charges. the Railways assure and ensure the delivery of goods at the destination on or before a specified date depending on the distance of traffic. The road portion of the traffic is carried by making special arrangements by Railways on collection of separate charges. to the Railway commercial staff.

The contractor should ascertain daily from the SM of the station the restrictions in force and also the quantity of goods that can be accepted for booking. But the freight forwarder should attach a list of commodities forming the wagonload in triplicate containing the following details:    Commodity in the packages Private marks Weight of individual package . Also it provides interchang3ed rail-cum-road transport to counter road competition. The goods must be marked with full ad correct address of the consignee. neither WDR fee is collected not prior registration is required. of packages forming the wagonload and  Declaration on total weight wagonload Description of individual packages and their contents need not be declared in the forwarding note. because the scheme is intended to cater smalls traffic. To supply the wagon. The contractor will arrange to cart and delive4r the goods in the same condition as received by him from the station. Separate charges are received for road portion of the traffic in addition to the railway freight. Loading is permitted up to the marked carrying capacity of the wagon and railway staff will not supervise loading.provided by the contractor or railways as per the conditions in the agreement. Reputed road operators having adequate trucks and godown facilities are appointed to furnci5ton as Freight Forwarders. On collection off sufficient quantity of consignments to one destination he offers them as a full wagonload. Likewise. Freight Forwarder Scheme: This scheme was introduced in 1969. inward goods received at the destination are delivered at the consignee’s premise. The freight forwarding not is executed by the freight forwarder with the following details:  Ames of ‘From’ and ‘To’ stations  Names of consignor and consignee of unified consignment  Total no. If the consignment could not be delivered due to any reasons for nondelivery. to recapture the ‘Smalls’ traffic one lost. The freight forwarder will collect ‘Smalls’ consignments from various consignors issuing his own receipts.

The Railway Receipt is endorsed as “Booked in accordance with the prescribe4d conditions on the forwarding note for freight forwarders. locked and .The purpose of this list is to help the claims cases arising out of damages. Container Service: The container service is available only at notified stations. 4) Loading & Unloading of the wagon should be done by the freight forwarder. handling and door delivery of the goods at the destination The wagon will be despatched by fast moving goods trains. etc. The goods are stuffed in the container. The freight charges are levied at the special lump sum rate fixed by railways.” The receipt is issued for “One wagon said to contain _______ packages” without mentioning any commodity ad weight of individual packages. the freight forwarder should maintain his own machinery. expenses incurred by the freight forwarder in collection. Other conditions of the scheme: 1) Only such traffic that move by road should be captured by the freight forwarder 2) Contraband goods. 5) Railway will not accept any liability in case of defective packing and the freight forwarder should ensure proper packing conditions. A refund in lump sum rats paid also given. 3) For collection f goods at originating station and delivery of goods at the destination. a rebate in the lump sum rte is given to the freight forwarder 9) Also depending on the number of wagons booked to the particular destination in a moth. The lump sum rate is fixed considering the road freight charges in the section. Pre-payment of freight is compulsory. Offensive ad Dangerous goods cannot be accepted. The goods are despatched in specially manufactured containers from the doors of the consignor to the consignee are safely and speedily. 6) Normal demurrage and wharfage rules are applicable. The wagonload is accepted at Owner’s Rick. 7) The freight forwarder should not canvass the goods that are available in bulk to move in wagonloads 8) To attract more smalls traffic. Specially designed road vehicles bring the container to the consignor’s premises.

high-speed state-of-art rail flat wagons have been induced into service. It’ business is characterised by three distinct activities as follows: i) ii) iii) A carrier A terminal operator A Container Freight Station CONCOR functions on the concept of single window facility and coordinates with all relevant agencies and services. Except a few road-fed Inland Container Depots (ICDs) all other CONCOR terminals are liked by rail. CONCOR has adopted a two-pronged approach to develop its traffic as follows: i) Large corporate clients with time/quality sensitive transportation requirements have been target ii) Frequent and regular services have been introduced between major destinations for capturing piecemeal traffic. As he goods are despatched in airtight containers. COCOR operates 34 EXM terminals including 16 EXIM & Domestic and 4 pure Domestic terminals across the country. These container wagons re despatched by fast moving goods trains.sealed in the presence of consignor. Packing cost for the consigner is drastically reduced. . damage and pilferage are avoided. The loaded container is despatched to the container terminal where it is loaded in a flat type wagon with the help of crane. with the prime objective of developing multi-modal transport to support the growing international trade & domestic traffic in ISO containers. The consignee should open the container and unload the goods. CONTAINER CORPORATION CONCOR was set up in 1989. Developmental activities of CONCOR: i) To ensure the improved transit time. This service is now being undertaken by CONTAINER CORPORATION (CONCOR). COCOR provides multi-modal containerized cargo transport. At the destination the containers are unloaded by the crane and despatched to the consignor’s premises thro’ road vehicle.

international and domestic streams have been segmented and a separate Domestic division has been created recently. They are operated between specific pairs of points on nominated days. iv) To give focused attention. To capture piecemeal traffic from roadways and road pricing has to be CONCOR’s benchmark. To diversify on ODC movement. Point-toPoint parcel trains and NMG automobile trains. To run high-speed freight trains to compete with roadways. a new freight policy was announced during 2000 – 2001. Makerting strategies of CONCOR: i) ii) iii) iv) To act as marketing arm of Indian Railways for multi-modal transport. iii) ISO container trains on scheduled paths and point-to-point/dedicated container takes have been introduced. special CONTRACK trains are introduced. Round trip VPU leasing.ii) To take care of a large number of domestic customers who offer high-rated commodities in piecemeal. New Freight Policy of Indian Railways: To increase the real share from 40% to50% in the overall country’s freight traffic in next 10 years. The elements of new policy are as follows: i) value commodities ii) Discount Scheme (VDS) iii) freight forwarders iv) terminal yards v) Extending the new concept of Roll-OnRoll-Off (RO-RO) – The freight movement in trucks rolled on the flat wagons to provide door-to-door collection and delivery vi) Running of fixed schedule freight trains vii) Launching the Freight Operation Information System (FOIS) to provide real-time Information on movement of freight wagons Providing warehousing facilities at Offering the leasing of SLR space to Providing incentives like ‘Volume Recapturing traffic of non-bulk high .

Iron & Steel. 7) The benchmark fixed at the time of introduction was the volume of loading during the corresponding period of previous year.VOLUME DISCOUNT SCHEME 2001 – 2002 (VDS) The Volume Discount Scheme was launched during the second half of the financial year 1998-1999 based on the Budget speech by Minister of Railways in the Parliament in 1998. 4) The rate of discount was 10% 5) The party had to enter into an agreement with the Railways assuring the traffic offered. More commodities were included in the scheme. VDS 2001 – 2002: The commodities are grouped into two Group I for outward and Group II for inward traffic. Cement. 3) Only outward full tariff rate paid traffic was included under this scheme. Revision of scheme: (a) (b) (c) (d) (e) The scheme was revised every year to make it more attractive. The Scheme: 1) Any party offers loading of 5% incremental traffic over the benchmark is eligible for a discount on the incremental traffic ordered for the commodities specified 2) In the year of introduction. mainly raw materials.. The scheme was extended to inwards traffic also for certain commodities. 6) The scheme was offered for two half yearly periods – 1st April to 30th September and 1st October to 31st March. Discount percentage was changed.  To encourage bulk sector traffic to move by rail  To retain existing traffic and to augment the volume of traffic  To attract more volume of high rated traffic to ensure better utilisation of resources. . Procedure for availing the scheme w simplified. Clinker. five commodities viz. Iron Ore and Sponge Iron were included I he scheme.

For Premier customers (who offer 70% of the total production by Rail). benchmark will be the notional average traffic for one month multiplied by SIX. Bench Mark:  Outward – The highest loading figure achieved during the corresponding six monthly Periods of last three financial years. Sponge Iron. Sugar being a seasonal traffic. i) Traffic includes both ‘paid’ and ‘to-pay’ and concessional rate traffic including station.Group I . Iron & Steel (Division A. Gypsum Lumps and Felspar (Under main head Stone NOC) – received from indigenous sources The scheme 01/3/2002. Iron or Steel Scrap. Cement Clinker. the benchmark will be the highest loading figure during the corresponding six monthly periods of the last three financial years. the benchmark shall be the highest of total despatches by rail during each half yearly period of last three years. But. Soda Ash – Light and Soda Bi-carbonate Group II .Cement. For new -station rate traffic to arrive at the benchmark.  Inward . Sugar. For parties who offered or received traffic for a few months only.Lime Stone. the benchmark will be 15000 tonnes per half year. was valid from 01/4/2001 to 30/9/2001 and from ii) iii) iv) v) Eligibility for discount:  Loading or receiving more than 5% compared to the benchmark  Premier customers are eligible for discount if they cross the benchmark . Gypsum Powder.The highest traffic figure achieved during the corresponding six monthly Periods of last three financial years. the confessional traffic will not be included to determine the eligibility criteria and for grating discount. Pig Iron. Manganese Ore. received from indigenous sources only. B & C).

Discount allowed at the time of booking hall be clearly indicated in the RR. For the first 5% incremental traffic. Such RRs should be clearly endorsed as issued under VDS. DCM/CCM/FA&CAO duly maintaining a register for the quantity moved. CFTM and FA & CAO(T) will deal the matter and the decision will be communicated to the party under advice to the concerned station and Division. Records at stations/sidings: Each station should maintain party-wise details with all the relevant information of RRs for cross checking. Group – II: Discount will be allowed I the form of refund after the end of the scheme period. The scheme will be finalized b y the originating railway I case of Group. discount will be allowed as refund b y CCM on application by the party.I commodities ad the destination railway in case of Group – II commodities.e. Returns for the same should be sent to the Accounts Officer. 75% of the refundable amount will be refunded on verification of goods shed/siding records. Clear records of loading and discount allowed shall be available at the station. attaining 5% incremental traffic above benchmark) the station shall allow discount at the time of preparation offer. The goods shed/siding staff should watch for the attaining of benchmark and advise Sr. The Balance 25% will be refunded after finance concurrence.. Rate of discount (%) Group – I Group – II 8 6 10 7 12 8 . How to avail the discount: Group – I: On achieving eligibility mark (i. The Empowered Committee consisting of CCM (FM).Discount: Incremental traffic above bench mark Upto 10% Morethan 10% and upto 15% More than 15% How to join the scheme: The parties willing to come under the scheme will be required to give only a letter of intent to CCM regarding the additional traffic to be offered by them.

a) to retain the existing traffic which is likely to get diverted on count of severe road competition b) to attract additional traffic to rail c) to develop national and mall industries which cannot afford to compete with the well established industries d) to assist sick industries in moving their finished goods to overcome their difficulties. Class – 90)  It cannot be quoted for traffic less than 150 kms. The grant of specially reduced rate is usually for the purpose of economic assistance to a trader or a class of traders. coal shale. approval of the Railway Board should be obtained.  Such special rate can be quoted for a maximum of 18 months at a time  The station-to. 1989 with a specified minimum weight condition..STATION-TO-STATION RATES “Station-to-Station rate” is a special reduced rat quoted for a specified commodity for movement from a specified station to a specified destination station. livestock and Petroleum products. The finance concurrence is necessary for quoting the rates and for revision or cancellation of the rates. approval of the Railway Board is necessary. Railway Board approval need not be obtained in case of ‘Station-to-station rates’ quoted. The Zonal Railways are empowered to quote such special rates.e. Also if the purpose of quoting such reduced rates is for any purpose other than securing additional revenues. even though such case is within the Rat reducing powers of the Railway. Such reduced rate can be quoted as per section 32 of Railways Act. coke. by Railway Rates Tribunal. The rate reducing power of the railways have been limited up to a level and if the reduction below he level so permitted is considered desirable. provided no undue .station rat should not fall below he lowest class rate (i.  Station-to-station rate should cover the cost of operation No reduced rate can be quoted for commodities like coal. It is quoted on commercial considerations with a view. lignite and patent fuel in wagonloads.

it will help to feed the return traffic. It develops the scope of marketing for distant producers to brig their produce to the consumers from more than one area of production. 4. This also stimulates the traffic and increases the volume of traffic on railways. Stimulation of traffic Market competition (a) Development of new industry (b) Expansion of an established industry in public interest To face the competition fro other modes of transport Stimulation of traffic: A lower special rate may be quoted to develop new traffic when such a commodity would not move by rail if charges at normal freight rates are levied. This also create a tendency among sellers for reducing prices and to make commodities available to consumers without giving room for shortage for such commodities in case of crop failures etc.” Any basis of rate should not discourage the movement of saleable commodity since it is harmful to public interest. 3. As such the special circumstances under which the railway may quote special rates re s follows: 1.preference is shown by the Railways. This can also be considered as the “VALUE OF SERVICE. By quoting a reduced special rate without which the commodity may not be transported as it may make a very little margin of profit to the producer. 2. While fixing such station-to-station rate the following shall be considered: * * * * What the traffic can bear Value of such articles Traders’ profit Volume of traffic expected to move Market competition: The principle of permitting market competition is to induce movement of commodities long distances. Therefore it is necessary on the part of the Railways to encourage and stimulate such traffic. . additional traffic is brought to the railways. When such traffic is brought and stimulated in the empty running direction.

while quoting special rates. shall be fulfilled and the railway will earn substantial revenue. “It is the chosen function of the transportation agent by rail or water to ensure preservation of equality of prices despite the variety of producing and consuming conditions. . Since violation for this principle may lead to UNDUE PREFERENCE. Therefore the effect of quoting the special rate is not go create a difference of opportunities between individuals but to generalize economic conditions and equalize prices throughout a wide area. Therefore special rates on consideration of market competition should be quoted in such a way that the rates for longer distances for similar movements should be more than the rates for the shorter distance. STATION –TO. So the quotation of special rates to create a healthy market competition is a further extension of the same principle for inducing particular traffic. Still the rate for longer distance need not b in proportion to the distance ad the reduction in the rates may b to the extent necessary to market the produce at the distant market with a reasonable margin of profit to the trader. The preset telescopic system of rates recognises the principle that the distant producers are benefited by the rate not increasing directly in proportion to the increase in distance. Justice Lokur comments emphatically “the general rule is that carries have no right to disregard distance and natural advantage to bring about commercial equality.According to Justice Lokur’s judgment through Railway Rates Tribunal.” Hence charges for longer distance should not be depressed so as to bring it on par with or below the rtes for shorter distances for similar movements. if judicially approached.” In railway parlor it is known KEEPING EVERY ONE IN BUSIESS.STATION RATE TO DEVELOP A NEW INDUSTRY: Another occasion demanding quotation of special rates is for the purpose of helping a anew industry to develop or helping an established industry to expand further. The purpose. The railway should ensure that while quoting special rates the geological advantages should not be completely nullified. care should be taken to see that geological advantage is not nullified. This is done in the interest of public also.

Therefore. promotes the welfare of the Railways. the railway has a vital role to play and has its own obligation to help the industries by quoting judicious special rates whenever and wherever necessary. if nurtured and nourished towards prosperity. with a view to attracting and retaining the traffic. stabilisation and expansion of the established industries. 15/04/99): 1) The rate may be quoted only when there is a perceptible decline I traffic. any reduced rate given t the time of booking will be recovered through encashment of security. since the welfare of the public will. Quotation of reduced rates helps industries. the welfare of the industry. For this. they become well established and the same industries will help the railways by offering more traffic of finished products. in turn. 6) In case the party could not offer the quantity of traffic as committed by him. Thus quoting special rates in such cases has reciprocal advantages to both industries and railways. Guidelines to quote Station-to-Station rates(No. needs development of industries. quoting a special rat on this count should be with the aim of helping the growth of the industries without which the industries may suffer closure or become sick. India. shall help the railways to prosper with the offer of more traffic. too. 4) If the consignor furnishes security for the assessed value of reduction in rate. In other words. Zonal Railways may quote station-to-station rates subject to the following conditions: . the station-to-station rate will be applicable at the time of booking. 5) Otherwise the benefit of reduction in rate shall be granted only s a refund after moving specified quantum of traffic. 2) It shall be quoted against written commitment by the consignor to offer specific quantum of traffic during the prescribed period. 3) The quantum will be fixed by the Railways on the basis of loading during the corresponding period of the previous year. TCR/1618/96/5 dt. being a developing country.The railway should consider not only its own welfare but also the welfare of the general community.

ix) The rates re subject to revision on the basis of general freight adjustments advised from time to time. The principle behind the introduction of trainload rates is the sharing of benefits arising from economy involved in such movements between the railways and the rail users. The railways are benefited in moving trainloads because trainloads are not disturbed route. v) Reduced rate should not be quoted for any traffic for distance less than 100 kms. Generally the minimum weight was prescribed as 1400 tonnes for BG and 650 tonnes for MG to avail the trainload rate. proposals may b sent to Railway Board with detailed justification and FA & CAO’s comments for approval. The trainload rate benefit was previously available only when the minimum weight condition prescribed for the commodity was fulfilled by the owner. ii) The quantum of reduction should b decided after examining the impact of general increase or decrease in the cost of the commodity. If Zonal Railways are not empowered to quote station-to-station rates in some cases. vi) The rate can be quoted with the approval of G. At present the trainload rate benefit is .M. viii) The rate shall be quoted for minimum period of 3 months but not more than 12 months. x) The rates shall not be quoted for Coal. They are not marshaled enroute or detained anywhere. and with the Accounts concurrence. whichever is higher. Livestock and Petroleum products. vii) The rate shall not be quoted for any commodities availing freight concession. Grains & Pulses Div. if any. Therefore the railway share financial benefits with rail users. iii) The reduced rates hall cover the dependant cost (78-5% of the fully distributed cost) or the rate for class 100.i) The reduction in rate should not be more than 10% of the tariff rates. Owners also are benefited because their goods are take to the destination quickly on faster speed and on top priority. – A & B. It ensures the reduced transit time thus Railways and achieve quick turn round of wagons. iv) The rate should not be quoted for commodities chargeable at class 100 or below. UNIT TRAIN LOADS From 01/02/1982 a special reduced rate for unit trainloads came into force.

2. No. should record the reason for non-supply of minimum number if wagons required for train load rate benefit. the A. e) The message should be recorded and filed for inspection by TIA/CMI 4. a) CGS to issue message to control office with regard to nonsupply of indented number of wagons for trainload.the indent is for standard rake . c) AOM/DOM should ensure that. At POL sidings where continuous loading is done round the clock.F.E. etc.and indents for the remaining number of wagons not supplied are cancelled by the Railways and not o party’s request d) Trainload rate benefit should be extended by giving reference of the numbered message in the Railway Receipts. 6. Any relaxation in this regard can be given only on written authority by COM/CFTM. notified as full rake dealing stations). If Railways fail o supply the wagons required for standard rake.585/P/Vol.offered when the traffic is offered in ‘Standard Rakes’. IV t. TRAIN LOAD (W. Consignor should load atleast “Minimum number of wagons required” for trainload rate. In case the minimum number of wagons could not be loaded even after supply of number of wagons due to sick marking. Trainload indents will be accepted only at notified stations and also for notified stations (i. 5. C.O. If Railways fail to supply even the minimum number of wagons required for train load rate. . 3. on the following day of the transaction and in case of Port Trust Railway. the DMTR should record the reason and communicate permission to the Goods clerk to extend the train load rate benefit. AOM/DOM permission should be obtained as above and trainload rate benefit should be given to the party. 15/09/1998) (Ref.31/08/1998) 1.e. TXR rejection. Party shall indent for “Standard Rake” and loads all the wagons when standard rake is supplied by the Railways. b) AOM/DOM should record reasons for no-n-supply on a file meant for trainload indents and issue a numbered message extending the trainload rate benefit. . which are prescribed in terms of number of wagons.full number of wagons could not be supplied by Railways in one or more instalments within a reasonable time of 3 – 4 days .

The list of authorised stations should b notified by Railways. C.two sidings of the same serving stations (or) .e. vi. trainload rate may be permitted when they are loaded from a siding and it’s serving station or two sidings served by the same serving station.f. BCN and BRN rakes) 8. iii. In case of BOX-N wagons.the serving station and it’s siding (or) . 9. 585/P/Vol. They should have the capacity to deal with atleast half rakes.e. of each other or from the common point iv.. i. . provided the two destination stations are. v.  One siding and One station  Two sidings  Two stations ii. Standard rake or minimum number of wagons required for train load rate) b) Wagon load rate on through telescopic basis will be charged between the point over Which the traffic do not fulfill the train load condition. Use of other types of wagons can be permitted by Railway Board. The originating points and the common point where the two parts of the rake are combined as a trainload should be in the same division. peripheral yards (or) . . 5/12/2001) i. Charging of two points train loads: a) Train load rate will be allowed between the points over which the traffic fulfill the train load rate condition (i. Trainloads booked from two originating statios to one destination (w. VI dt. Booking of trainload from two points which are not served by same station is permitted only in BCX & BOX wagons. 15/12/2001): (No. Indents may be accepted for train load from one originating station and terminating at destination stations.two sidings notified as independent booking points.e. The pair of originating points may be.7.combination of two points as approved by the Railway Board (The booking of two points combination rakes would not apply to BOX-N. The originating points should be within a distance of 100 kms.

x. D. Wagons loaded at one loading point and the trainload is formed at the second loading point and moved to destination as trainload: Freight at wagonload rate between the first loading point and second loading point where they are moving as wagonload Freight at trainload rate for all the wagons from second loading point to destination where they are moving as trainload The total freight of the above two will be levied - . D.C.C. Similarly when the wagons of second originating point are loaded but waiting for the arrival of wagons from first originating point should not be levied with D. ix. All other conditions like indenting standard rake and loading atleast minimum number of wagons. The indent and F/Note by the single consignor or two consignors at two originating points should be clearly endorsed regarding the trainload movement indicating the umber of wagons to be loaded from each point.vii.. If the trainload conditions are not fulfilled at any stage. xi. etc. Method of charging: Wagons loaded at two different stations ad the trainload is formed at a common point and moved to another destination: Freight at wagonload rate between the loading stations and the common point where they are moving as wagonload Freight at trainload rate for all the wagons from common point to destination. In the second originating point. The total freight of the above two will be charged. are applicable in this case also. free time as applicable for the number of wagons involved in the particular booking point should be allowed. when the wagons are detained beyond free time.C. should be levied only on wagons supplied lat the second originating point and not on the wagons received from the first originating point. xii. viii. all the wagons should charged at wagonload rate only.

(C.G.G.STANDARD SIZE OF TRAINLOADS WITH DIFFERENT TYPES OF WAGONS Type of Standard rake size Minimum number of wagons wagon required for train load rate BCX/BOX/BRH 35 30 CRT 68 64 Conventional Covered 70 65 wagons BCN/BCNA 40 38 BOXN 58 56 BFR 30 28 BRN 35 32 BTPN 48 46 BOBR 52 50 BOBR – N 58 56 TANK Wagon 70 65 (4-wheeler) M.G) : .G Nil 34 (4-wheeler) M. wagonload rate with telescopic benefit shall be applicable to such wagons.585/P/vol. minimum 34 MG 4-wheeled wagons should be loaded. (One MG 8-wheeler should be treated as two MG 4-wheeled wagons).G. If lesser number of wagons are loaded.G Nil 90 (4-wheeler) B. to M. After transshipment. all trainload conditions should be complied. VI dt/ 23/10/2001) Mixed 30 30 rake/Sherpa rake (B.G At BG originating point. to B. to M. on each MG stream.

whenever it is contemplated on the principle of competition from other modes of transport. Competition from other modes of transport Railway my not be prepared to lose the traffic because of competition from other modes of transport. the chargeable weight will be the same as for wagonload traffic for each wagon. The quotation of special rate has to be considered. This principle is to retain the traffic to the railway when any situation of competition arises. By this endorsement no undercharges would be recoverable by the destination station even if the consignment were received in less than a trainload. to quote also special rates for having a far share of the available traffic. Endorsement to be made when more than one RR is issue for a trainload: With a view to ensure that the destination station is ware of the fact that the consignment was booked as a trainload an endorsement is required to be made by the booking station o the RRs to the effect that the train load conditions has been complied with. It is worthwhile to quote special rates to traffic in the empty flowing directions even going down o he floor level of rates if at all such traffic can be retained to the railways. Hence it becomes necessary o the part of the railway while improving the services to the satisfaction of the public. road or water. over sections where there is adequate capacity for carrying additional traffic when offered. when loading of required number of minimum wagons for a trainload is complied with.  Trainload rate benefit may be extended for rakes loaded with two or more commodities having similar or varying weight conditions. The diversion to other modes of transport may be attributed to not only mere service by them but also to the lower rates of transportation there. i. Here it may also be thought as wise to prevent diversion of any traffic to other modes of transport.BOX/BFR/BRN Note:  For calculation of freight.e. .

Other considerations: Apart from the above few circumstances. help needed for industries. For example. full trainloads are moved and the movement of such larger quantities are confirmed to be regular and certain. etc.. when nitrate of soda if used for fertilizers is justified to have a special rare while the same commodity when used for manufacture of gunpowder is equally justified to be charged at public tariff rate. public interest. viz.. railway can revise the rate or withdraw the incentive given by offering the special rate. In moving raw material to the manufacturer.e. the . transport sector has a very vital role to ply. Therefore. while larger quantities. RAIL ROAD COORDINATION Introduction: Role of the transport sector in the development of nation’s economy needs no emphasis. But this doesn’t mean they are the only important sector in the nation. Though transportation stimulate production of foods. materially. i. Railway may also quote special rate considering the use of the commodity in the manufacture of different products. It is not necessary on the part of the railway to continue to offer the special rate indefinitely because special rates are quoted voluntarily considering market competition. when the circumstances change for the batter. For example. fished goods to the user pubic and in movement of labour force on daily basis or on seasonal basis to the industrial localities. The following points should also be considered while quoting special rates:  Similar rates should be quoted for similar movements and under identical conditions  Special rate cannot be refused to any trader having traffic for which special rate has been quoted for on trader between the same pair of points. railway may quote special rates considering the volume of traffic since there is a saving of cost. Special rates may also be quoted as a matter of public policy. export traffic needs support by way of special rate in view of national economy towards the direction of favourable balance of trade with foreign countries.

Thus the railway transportation is capital intensive. the investment require may be more than 100 crores. Compare with other modes of transport in many cases. And the transportation sector is only helping the nation in increasing production of goods. Railways should not compete with other modes of transport by wasting their infrastructure. To decide the role of Railways and Roadways in transportation sector. To make a trainload. engine. 2) 3) 4) 5) . The cost of rolling stock (i. Thus to lay and operate railway line of 500 kms. Thus Railways are advantageous in densely populated metropolitan cities where land is scarce. a minimum of 3000 tonnes of goods should be offered.transportation sector does not produce any goods other than the transportation. which is always scarce. the advantages and disadvantages of both ode of transport should be understood. The unit for movement on the Railway is a train and not a wagon or coach. With the availability of resources having limited. And hence the Railways are basically suited bulk movement. Advantages and disadvantages of Railways: 1) Laying railway lines involves heavy investment – On present day costs. there is need for optimal use of available resources for the development of transport sector. One km. A nation’s economy can goes up only by increased production of goods both in agricultural and industrial areas. which the minimum land uses. wagon & coach) would be another one crore approximately. It is this context. In such cases. of track costs 1-25 crores of rupees. And hence the country cannot afford to invest bulk of its resources on developing the transportation infrastructure. Maximum throughput can be achieved over Railways. Railways are fuel efficient – In the context of shortage of petroleum products in the country. Railways are the better mode of transport. Bu the energy consumed by a train for starting and stopping is very high and with increased stoppage the advantage of fuel efficiency disappears. Railroad coordination becomes very essential to avoid wasteful competition. other modes of transport have their advantages and they are more suitable than Railways. but in some cases. Railways re having an edge over the other modes of transport. railroad coordination becomes important. The capital required for railway investment based on budgetary support from General Revenues.e.

Manpower required to operate the rail traffic is considerably less for moving the same level of traffic over the same distance than by road. rail transport is more suited than sector. atmospheric pollution s very high. Even pedestrians are not allowed on railway line. 3) Roads can reach the doorsteps pf the customers. 6) Roads can used for variety of transport while the railway line can be used only for rail transport. While the Railways cannot. To develop an underdeveloped are. Movement like defence especially to remote area are. 8) Energy consumption per tonne/km. private operators invest their finance.6) 7) 8) 9) Railways are environment friendly as the pollution will be least comparing with other mode of transport. 4) Handling costs and incidental damages after less by roads s the goods are moved from godown to godown. To procure vehicles. it is necessary to carry some traffic below costs. 11) Throughput over roadways is much less since more roads and road vehicles will be required to move the same level of traffic for the same distance. will be more by road than by rail. Such transport developments will not be taken by road sector being mainly operated by private sector. the role of railways and roadways can be defined for the betterment of the nation’s . Railways being a Government sector can plan an important role in such situation. Role of Railways and Roadway On consideration of these pros and cons of the two systems. 7) In roadways. Advantages and disadvantages of roadways: 1) Investment involved is less. 5) Unit for movement is only 10 tonnes thus the roadways can move faster in case of piecemeal traffic. 2) Investment from Central Revenue h to be spent only on laying roads. as there is more personalised management. 9) Road traffic is suitable for short distance except in case of suburban traffic 10) In road traffic better accountability can be maintained.

 For short distance passenger traffic ad goods traffic I piecemeal. The Railways in the form of Freight Forwarder Scheme.  Railways should cater to the long distance passenger traffic. Some of them are as follows: . Both in Railways and Roadways. They should be regularly informed of the details of proposed road expansions. Container traffic. The aim of railroad coordination is to fully utilize the idle capacities in the two sector and to prevent the wasteful investment in areas where rail or road systems are not ideally suited.  Also Railways are ideal for carriage of suburban traffic. etc. already practice this. roadways us better suited and hence road sector should be encouraged. the existing capacity is inadequate to meet the traffic requirements in some areas (Golden quadrangle) while in other areas the capacity is under utilized.economy an efforts must be taken on proper coordination to avoid wasteful expenditure and competition. Suggestions to ensure railroad coordination: Various measures are required to ensure the coordination.  The Railways should be assigned the task of carrying bulk traffic. where the roadways have to act as a feeder service. They should ensure that due expression I given to the railway point of view in all matters affecting the railways’ interests. as they are the ideal mode. The failure of MRTS in Chennai for want of proper feeder service by roadways may be thought of. etc. Duties and responsibilities of Railway officers nomination to State Road Transport Corporations: Railway officers are deputed to State Road Transport Corporations to represent the Railways on the Board of Directors.. Importance of railroad coordination: Any future investment in rail and road sector should be done with the above objective to ensure optimum utilization of the investment. while the roadways should assist the railways by collecting piecemeal traffic and make them into trainloads.

5) Uneconomical branch lines may be closed and the tracks may be converted as roads and handed over to the State Governments. TRAFFIC SURVEY it is a detailed study of the traffic conditions of an area or section to assess the traffic prospects and the financial implications of. one common authority should plan integrated rail and road developments. 2) Active management participation of Railways in Road Transport corporations.  Inter-model allocation of total streams of traffic between rail and road The earnings and working expenses should be compounded for each year of the economic life of the project. The Traffic Survey team: N experienced Administrative grade officer fr9om Traffic (Commercial/Operating) department (Traffic Survey Officer) is entrusted with the work of traffic survey. a) New line projects b) Restoration of traffic on already existing closed lines c) Gauge Conversion. Doubling etc.  An assessment of the total traffic likely to be generated in the near future with special reference to the catchments area. 3) Terminal operations may be handed over to the road operators and Railways may concentrate only on transportation of goods. And the project may be appraised to see whether it will yield the minimum acceptable rate of return of10%.1) Proper coordination at the apex level – Ministry of Railways ad Ministry of Surface Transport may be integrated. Traffic Survey helps to arrive at. Objects of Traffic Survey: The decision on any new Railway project can be arrived at only after the economic study of the Project. An Accounts officer in Senior Scale or . 4) In suburban traffic. The economic life span is taken as 30 years.

etc. capital cost. He has to ensure the realistic of estimates of anticipated traffic. The instructio0ns regarding scope and nature of the investigations to be carried out will be supplied by the Railway Administration. Field Work: The Traffic Survey term should work in close co-ordination with the Engineering Survey team. The Chief Engineer in charge of Engineering Survey of the project will be the overall charge of the Traffic Survey and the traffic survey report will be prepared under his general guidance to ensure that the most economic proposals are formulated. To collect relevant information they should visit all trade centres in the area.Administrative grade who is experienced in Traffic Costing is associated with the team. Also he has to check the correctness of financial appraisal of the project and return at each stage. the traffic survey tem should collect the information from the following angles: i) ii) iii) iv) v) vi) vii) viii) Human resources Agricultural resources Mineral resources Industries located and projected Pattern of trade and commerce Existing transport facilities Touring Prospects Banking facilities Methodology to assess the traffic potentials: The traffic survey team should adopt the following methods to assess the traffic potential of the area under survey: i) Census on Goods and Passengers using the existing transport facilities . recurring expenses. New line Project: In case of new lie projects. Also they should consult local authorities and prominent citizens of the area.

 of the market towns through which the line passes  of the area served by the new section excluding market towns  density per square kilo-metre  composition of age groups  growth rate  Details of melas. it should be ensured that the other Railway does not take credit for the same traffic to justify some other projects. etc. fairs. regularly held and number of people attending these  Characteristics of movement of labour force (incoming and outgoing) The above details are used to assess the following: i. Percentage of upper class passenger traffic an for other coaching traffic. festivals. The estimates of I – class passenger traffic and earnings could be based on comparison of the population in the area served by the section to be constructed with the population served by a comparable section of an existing line. Assessment of Statistics to arrive estimate of Coaching earnings: To arrive at the estimate pf coaching earnings the following statistics should be complied and assessed.ii) Statistical forecasting of traffic of major commodities in the area iii) Commodity-wise earnings and lea of traffic to be assessed iv) If part of the lead is over adjoining Railways. The population of the area to be served by the new lie should be assessed as follows:  The population. it should be calculated in the proportion of the ratio that such traffic bears to II – class traffic o existing line where conditions are similar. Market town population . Then a percentage of Upper Class passenger traffic should be added with. Estimate of Coaching Earnings: To estimate the Coaching Earnings of a new line. anticipated II – class passenger traffic to be assessed initially.

which are peculiar to the area should be selected. Places and Stations outside the market town population (Interchanged traffic) . which are likely to have substantial transport requirement. For the purpose of estimates.Number of journeys per head to & from the stations outside the section The above data should be compared with similar data for a section of the existing line of approximately the same length and passing through a comparable area of land.. produces of mining. should also b identified.e. Assessment of Goods traffic & Earnings of a new lie project: The estimate of Goods Traffic should be made separately for ‘Outward’ & ‘Inward’ traffic. Other commodities of minor importance to the area should be grouped under the head “Other Goods.- Number of local journeys per head and verge earnings per journey Number of journeys per head to & from the stations outside the section ii. commodity-wise and their lead. The industries. Separate estimates should be arrived for local traffic ad inter changed traffic as follows:  Local passenger traffic in terms of number of passengers and earnings from market town stations and from other stations  Interchanged passenger traffic in terms of number of passenger and earnings from market town stations and from other stations The interchanged traffic should be doubled to allow for the inward traffic.Number of local journeys per head and average earnings per journey . wide on either side of the lie (i.” The commodity-wise assessment should be made into. Important agricultural commodities. cash crops. etc. 40 kms wide) to be constructed. the area of population may be taken about 20 kms. a) Short distance traffic and b) Long distance traffic .

clothing. if any on the proposed line will produce long distance traffic  The volume and lead of short distance traffic and long distance traffic should be assessed through enquiries made on the spot to ensure the correctness.  The imports of Coal and other raw materials for the existing and proposed industries To assess the goods traffic. Agricultural implements. etc. Before deciding the short distance traffic.  The statistics to be compiled to arrive at the anticipated outward traffic are as follows: 1) Total area under cultivation 2) Normal yield per hectare 3) Normal exportable surplus in the area 4) Existing Industries projected to start full productivity by the time the lie is ready for opening for traffic. After assessment of Coaching and Goods traffic. machinery. The figures of inwards goods traffic on an existing similar location should be studied and compare with those arrived for the proposed line. He following statistical indices of performance should be compiled: Performance of traffic Existing Line Existing Addl. the utilisation of existing modes of transport should be studied and a judicious estimate of their possible diversions to rail made. Traffic Traffic . the number of trains (Passenger & Goods). the pattern and conditions of trade and Commerce should be examined that whether they will give preference to rail over road. etc.  Well-developed markets.  The average import of food stuff per head of population  The average weight of other imports such as raw material. Traffic Traffic Project Line Existing Addl. 5) Any other traffic likely to arise due to implementation of various Government Schemes/plans Goods Earnings from inward traffic: The following should be considered to estimate the inward goods traffic. should be determined. the directions and patter of movement and the facilities for marshalling and terminals required. the loads.

FREIGHT TRAFFIC Tonnage loaded Commoditywise Tonnage unloaded Commodity – wise Tonnage transhipped Tonnage of cross traffic Net tonne Kilometres Loaded wagon kms. Average annual cost of maintenance and 3. Assessment of working expenses: In all cases of capital expenditure propose. Tare tonne kms. Gross tonne kms. Note: Empty haulage should also be reasonable assessed taking into account the outward and inward traffic commodity-wise and equipment-wise. Empty wagon kms. Average depreciation charges Project viability: . the working expenses also should be assessed in the following lines: 1. No. and name of repacking points No. Average annual cost of operation 2. Vehicle kms. and name of transhipment points COACHING/PASSENGER TRAFFIC Number of Passengers a) Originating b) Incoming Train Kms. Train kms. Engine kms. Engine kms. and name of marshalling yards No.

Any Railway Project should be accepted as financially remunerative only if it gives a rate of return not less than 10% by Discounted Cash Flow method (DCF). The salient features of the project should be provided in the report under the following heads: 1) 2) 3) 4) 5) Length of the line Number of stations Area covered – State-wise and District-wise Principal items of goods traffic Quantum of goods traffic – Year-wise projections in tones . the Traffic Survey Officer should submit the traffic survey report in the following format: 1) 2) 3) 4) 5) 6) 7) 8) 9) 10) 11) 12) 13) 14) 15) 16) History of the proposal and terms of reference General description Potentials and prospects Industrial and economic development an traffic projections Population projection and volume of passenger traffic Existing rtes d rates to be charged Location of route or routes examined. The traffic survey report should be submitted to Railway Board together with the views of FA & CAO. alternate routes and possible extensions Station sites and their importance Train service necessary/Section capacity and various alternatives to increase capacity Coaching earnings Goods earnings Working expenses and net receipts Engineering features Tele-communication facilities Financial appraisal Conclusion an recommendations An index map showing all relevant details of all town and places referred to in the report should accompany the report. DCF technique – The cash flow should take into count only the realistic earnings. Traffic Survey report: On completion of survey.

After a few years of experience and based on the recommendations of the Railway Freight Structure Enquiry Committee. undue advantage and unreasonableness of rates. Section 38 – Powers to Hear Cases: . 1989.6) 7) 8) 9) 10) 11) 12) Coaching traffic – Year-wise projection of passengers – Local and interchange traffic Number of trains Gross earnings per year. 1989 the RRT can hear complaints against the Railway Administration of contravention of Section 70 of Railways Act. Section 70 – Prohibition of undue preference: Railways should not give any undue o0r unreasonable preference in favour of any particular person or particular commodity. The Scope and the Powers of RRT: Under Section 36 of Railways Act. the tribunal was reconstituted in 1958. separately for Goods and Coaching Working Expenses Net earnings Financial result Cost of the project a) b) c) d) e) Civil Engineering Signal and Telecommunication Elecrical Rolling Stock Working capital 13) 14) 15) 16) 17) 18) Investment Schedule Ruling gradient adopted Standard of construction Maximum degree of curvature Speed potential of the line Cost per kilo-metre RAILWAY RATES TRIBUNAL Introduction: The Railway Rates Tribunal was constituted in 1949 with powers to hear complaints against Railway administration regarding undue preference.

RRT has also powers to decide whether or not a particular rate quoted by the Railway is reasonable. Procedure – Section 48 Railways Act. Constitution of RRT under Railways Act. the tribunal can fix the reasonable rates whether necessary..RRT can hear complaints against the Railway in contravention of Sectio0n 70. In other words. In such cases. 1989:  RRT may make rules regarding its practice and procedure for effective functioning  According to such rues it may avoid costs  It may depute an official for making enquiry in the locality  It may permit personal representation of the party or his representative . he can prefer a complaint before RRT and request for fixation of a suitable or reasonable rate. 1989: The tribunal is constituted in terms of Section 33 of Railway Act. If a particular party considers that the rate charged for his commodity between two stations is high or unreasonable. it should be ensured that similar movements in all other quarters are also given similar treatment. The responsibility to provide that such undue preference has not been shown to any party lies with the Railway. If any trader is charged less for the same kind of goods than any other trader is charged is said that the Railways has shown undue preference on one trader. Besides. The Chairman should have been a judge of the Supreme Court or a High Court member should have special knowledge of the Commercial. It consists of a Chairman ad two Members appointed by the Central Government. 1989. apart from the public tariff rtes. Industrial and Economic conditions of the country and the other Member should be person with special knowledge and experience of the Commercial working of the Railways. Railway Rates Tribunal can also decide the case taking into consideration whether such lower charge is necessary in the interest of the public. Railway should not be open to the charge of giving undue preference or undue advantage to any particular person or trade or commodity or locality. similar charges should be made for similar service. According to Section 32 Railway ca quote special rates for particular movement of traffic.

 It may collect fees requisition or complaints  Central Government should do all possible assist to provide information and Records at its disposal with reference to the case  RRT should submit a report of its proceedings annually to the Central Government Powers of RRT – Section 38 Railways Act. Prior to independence the public . The order of the Tribunal will be given its due regard because it is the decision of an expert body. 1989: RRT may transmit any order made by it to a Civil Court having local jurisdiction ad that the Court shall execute the order as if it were a decree as per Section 46. Execution of order – Section 46 Railways Act. 1989: The decision of the Tribunal shall be by a majority of the members sitting and shall be final. RAIALWY RATES TRIBUNAL – HISTORICAL BACKGROUND: The Proposal to establish a Railway Rates Tribunal was the result of longstanding public demand in the country. as it goes direct to the executive and should be implicitly obeyed by the executive. It is also within the competency of the Tribunal to consider all matters related to unreasonableness or other wise of siding charges prescribed for Private/Assisted siding. In case of appeal against the decision of the tribunal the affected party can ask for judicial revision and this can be done by way of writ petition before the Supreme Court under its extra-ordinary functions. Further the order of the Tribunal can also be set aside if the decision is made without evidence or contrary to the evidence. The order of the Tribunal can be set aside if it failed to apply some general rule or principle that the Court considers. It goes without saying that the decision is communicated as an order. 1989: RRT has     got powers of a Civil Court with regard to. Taking evidence on oath Enforcing attendance of witness Compelling production of documents Issuing commission to witnesses Decision – Section 42 Railways Act.

But in the opinion of Parliamentarians and members of the select committee it was not desirable to vest such powers with the Tribunal. After Independence in 1947. All the member of the Tribunal including the President were to be either Judges of High Court or persons eligible to become Judges. Later in 1995. to comply withy the long standing public demands. In 1926. the Constitution of the Tribunal and its jurisdiction was amended. Hence the Tribunal was reconstituted with a Chairman and two other members lying down in section 34 IRA that “a person shall not be qualified for . they appointed a Railway Rates Advisory Committee with very limited powers. The reasonableness of the classification of goods was also under its jurisdiction. The Railway Rates Advisory Committee could enquire into a complaint only as a reference being made by the Central Government and any decision given y them was merely advisory in character. based on the recommendations of the Railway Freight Structure Enquiry Committee 1955 – 57. There was a deep dissatisfaction with the composition of the earlier Tribunal with manifold procedural difficulties in meeting with the complaints. The Government which I responsible to the legislation and not with any outside tribunal however competent it may be. Thus the Act was passed I the final form with only limited powers namely with regard to undue preference/undue advantage and unreasonable rates. it was thought fit to bring in legislation to establish a Railway Rates Tribunal and bill was introduced in Parliament in 1948 to amend the Railway Act of 1990. The proposal was to get the approval of the Tribunal for any decrease or increase of Rats in general. The Railway Minister had proposal to give the Tribunal more powers than they had then actually been given. Composition of RRT: The RRT came into existence of Madras in 1949 with one Chairman and two members. in conducting investigation with a business by purely judges of the High Court. however. two drawn from Indian Chambers of Commerce and Industry and two recommended by Railway Board. but the British Government did not agree to the establishment of n independent tribunal. The Government should alone have powers to increase or decrease the rtes.demanded in the Legislative Assembly and other Forum that there should be an independent judicial tribunal to enquire into complaints against the Railway of discrimination and unreasonableness with regard to rtes. They felt that the Government was responsible for the efficient and solvent running of railways. However the Tribunal was assisted by four assessors.

Whenever it is proved that one trader is charged less than another trader for one and the same kind of goods for similar service presumption arises that the former is given . luggage rates... It means equal charge should normally be levied for passengers or goods of the same or similar levels over the same or similar area and under similar circumstances. Apart from public tariff rats. The Central Government may make a reference to the Tribunal in respect of any of the matters relating to classification of goods. or increase or decrease the rates. the Railway may grant special rtes for particular movement but in such cases it should be ensure that similar movements are given similar treatment. showing undue preference to a particular person or particular commodity b) Charging an unreasonable rate for any commodity between any two stations Charging any other unreasonable charge c) Prohibition of undue preference – Section 70: Section 70 is obviously base on the principle that the power derived from the monopoly of Railway must be used in a fair and just manner in respect of all persons and all description of goods. as per Section 45 of IRA. The tribunal shall make an enquiry and submit its report thereon to the Central Government. etc. parcel rtes or passenger fares.appointment as a Chairman of the Tribunal unless he is or has been a judge of the Supreme Court or High Court ad other two member of the Tribunal shall have to be chosen from among the public who in the opinion of the Central Government have special knowledge of Commercial. Also it has no mandatory powers with regard to parcel rates or passenger fares etc. 1989 as follows: a) Contravening the provisions of Section 70 i. Industrial or Economic conditions of the country or of the Commercial working of the Railways”. which on receipt may take such action. UNDUE PREFRENCE AND UNDUE ADVANTAGE The Tribunal has jurisdiction over the complaints falling within the three categories mentioned in Section 36 of Railways Act.e. as it consider suitable in respect of such matters. Further the mandatory power of the Tribunal powers with regard to classification of commodities have been taken away and the Tribunal has only powers with regard to undue preference and undue advantage and unreasonableness of particular rate only the Central Government has power to classify or re-classify commodities.

Preference or discrimination by itself is not prohibited so long as it is not undue or unreasonable. No competition can exist in respect of cotton intended for local market. Again no competition can exist between lime stone booked to the cement factory and the lime stone booked to steel plants. Any of the following here can constitute undue preference:  Discrimination between persons  Discrimination between commodities  Discrimination between places or localities Personal discrimination is said to have taken place when one consignor is treated more favourably or charged less than others for substantially the same service. In other words the Railway should not be open to a charge of giving undue preference or undue advantage to any particular person or trader or commodity or locality. If there is no such competition there can be no question of preference. Preference can arise only when there is competition between two persons and the rates are unequal as between competitors in the same trade. Undue preference of discrimination is said to have taken place when the preference shown is unfair or made without cause. In view of this any person bringing a charge of undue preference against the Railway has in the first instance to establish that there has been preference as between him and his competitor ad it is for the Railway to lead evidence to establish that this preference does not constitute undue .undue preference and the burden of proving that such difference in treatment does not amount an undue preference lies with the Railway. For example no competition exists between persons engaged in the trade of whet and person engaged in the trade of rice. Competitions in the same market between two commodities for which unequal rtes exist are therefore an essential prerequisite for establishing preference. Discrimination between localities can be deemed to have practiced when the same commodity is charged for differently for the same quantity and distance when offered for booking at two different places. Discrimination between commodities arises when two commodities booked from the same station to the same destination are charged differently.

In such cases the burden of proof that. Bombay Vs Southern Railway and Central Railway it was contended that the rates for Cast Iron Pipes from Bhadravathi to Bombay was unreasonable. RRT heard the case ad came to conclusion that there was no question of undue preference in this case because there was competition of interest between the Fertilizer and Cement and moreover the same commodity Gypsum enjoyed the Station-to-Station Rate in public interest. as the same rate should be applied to Gypsum moved from the production centre to its Cement Factory. unreasonable rtes was also cause discrimination among two parties or commodities. between two commodities it is held that there is undue preference. The station-to-station rate quoted by the Railway are the one likely to be most assailed as constituting undue preference. The complaint of unreasonable rate arises when commodity is placed in a higher class than it is justifiable. Rupee one and annas six per manud was introduced. Even where undue preference has existed. The question of undue preference arises only when there is in inequality of rates between two commodities in the same market and this inequality is held to be undue. If the Railway is not in a position to establish satisfactory justification for the unequal rate. During the revision of rate .preference.e. On the other hand a Rate can be regarded as unreasonable even when there is no discrimination of preference and when the charge or a rate is unreasonable it is for the complainant to establish that the rate is unreasonable. The distinction between unreasonableness and undue preference has to be clearly understood. In a leading case of Gypsum. In a complaint of Engineering suppliers Limited. However it was cancelled in January 1948 and full tariff rate then in force i. The Associated Cement Company referred the matter to Railway Rate Tribunal that Section 70 was contravened. UNREASONABLE RATES – SECTION 36: Apart from undue preference. Consequently there was a special rate of 7 annas per maund from 1928 to 1941. It was increased to 11 annas per maund from January 1942. station-to-station rate was introduced for the movement of Gypsum from 19 production centres in the North to Sindri Fertilizer factory of the public sector. The Cement industry managed by Associated Cement Company Limited was not in need of any assistance or protection by reduced rates because the company was making reasonable profit to declare handsome dividends. it is to be established that undue preference is necessary in public interest according to Section 41. the classification given to a commodity is not unreasonable rests with the Railway.

class 300 – X. RMC & military traffic (4) Fixation of lump sum rates Commodity hitherto not classified are chargeable at the highestclass rate. The complainant felt that the rate fixed was unreasonable compared to the special rate enjoyed during 1928 – 1941. freight for luggage. The circumstances that led to the increase was due to general increase of rate from 1948. The Tribunal accepted his argument. not being a date earlier to the date of filing of the complaint . the RRT may grant – Section 44: While granting relief. The operating expenses of the Railway had mounted up so much that they re to increase general level of rates and all commodities were subject to the same increase. They requested a new special rate of Rupee one and annas three per maund. 1989 the following are excluded from the jurisdiction of the Tribunal: (1) Classification/Reclassification of a commodity (2) Fixation of wharfage and demurrage and conditions related to them (3) Fixation of passenger fares. The Railway justified the increase in rate. The revision of rtes is essentially the function of the Government and is not delegated o RRT. BAR OF JURISDICTION – SECTION 42 IRA: Under section 37 of Railways Ac. a) fix such rat or charges it considers reasonable from any date as it may deem proper. parcels. which formed a sizable and important part of the total revenues. the Tribunal may. If the trade feels that a commodity has been placed in higher class than it is justified it is the Railway Ministry. which has wide powers in the investigation of complaints relating to undue or unreasonable preference and unreasonableness of rates.e.structure it was revised to Rupee one and annas fifteen per manund. and the Tribunal has no jurisdiction to take up such cases for consideration. i. which is competent to consider the request for reclassification. Reliefs. should not be watered down and rendered ineffective by interference from an independent body. The increase was necessitated by the mounting operating cot of the Railways during and after the Second World War. It was felt by the Government that the Railway revenues.

In the complaint of Engineering suppliers Company. Even if the parties had booked the wagon to Bombay at the Special rate and rebooked them to Kalyan and Ambernath they would have to pay only less amount. The Tribunal passed orders that the special rate from Bhadravathy to Ambernath and to Kalyan on 09/10/1953. Relief by way of damages or compensation is also not provided for. but they have powers to decide what the reasonable rats should be from the date of the complaint. Relief by way of damages or compensation is also not provided for. It is but anomalous because a special rte at one rupee and three annas had been quoted from Bhadrvathi – Bombay but for loading to Kalyan and Ambarnath which are at short distances from Bhadravathi the full tariff rate which were much more had to be paid. Hence it requested the Tribunal for a direction to the respondents (Railways) to refund the excess charges collected from January 1951.b) direct a refund of amount if any. as being the excess of the rate or charge fixed by the Tribunal as above The Railway Act does not contain any provision. The party requested that the same special rate should be applicable as to Bombay a Central Railway refused this. 1935 includes that the Tribunal may make such order for the payment of compensation or damages of costs as the circumstances of the case may . which was omitted the payment of refunds. RRT considered that the Railways’ stand was unreasonable. Bombay Vs Southern Railway ad Central Railway a special rate of Re. However the opinion of RRT. The Act does not also specifically say whether the Tribunal has got powers to give relief with regard in respect of past transactions. In this case the party had been requesting the Railway for special rate to Ambarnath and Kalyan. The complaint was actually filed in 15/02/1952 and the orders were passed on 09/10/1953. Section 196 (3) of Government of India ct. The distance between Bhdravathi and Bombay is 643 miles while the distance from Bhadrvathi and Kalayan is 611 miles and Bhadrvathi to Ambarnth is 607 miles. The Tribunal has no jurisdiction to make any declaration for a period prior to the date of filing of the complaints. The Tribunal held that they had no powers to order such refunds s section 39 IRA is confirmed to the payment of costs. One and annas three was quoted from 15/10/1949 from Bhadravthi to Bombay. An ordinary charge from Bombay to Kalyan and Ambernath was charged. which gives powers to the RRT to order ay refund in respect of past transactions.

The High Court held in its judgment that the Tribunal had no powers to give any relief either declaratory or otherwise from a date prior to the date of complaint. the raw material should be charged at a lower rate than the finished products. The Court did not agree that the order of the Tribunal could only operate from the date of the order. The final position in regard to the powers of the Tribunal is therefore that it has powers to order quotation of Reasonable rates from the date of complaint if considered necessary. The high rate applicable to Naptha also placed the complainant in disadvantageous position vis-a-vis other fertilizer factories located near the ports or refineries. Naptha transported by the complainant was charged at normal class rate applicable for the commodity. Hence the basic principle of rating i.require. was not being followed. Also it was contended that the movement of Naptha I trainloads yielded substantial economics to the Railways. The terminal handling of Naphtha was being done by the complainant and this also resulted in savings for the Railways. The complainant assailed that this is “Unreasonable”. CASE LAW: (1) OF INDIA: DELHI CLOTH & GENERAL MILLS VS UNION The complaint is in respect of non-application of station-to-station rate for movement of Naptha from Bajuva to the Fertilizer plant of M/s.e. It was further contended that the high rate applied for Naptha militated against the policy of making fertilizers available to the consumers at a cheap rate. Delhi Cloth & General Mills at Dadhevi. RRT findings: The complaint was dismissed by the RRT on the following considerations: . The rate is unreasonable since Chemical Manure Div. They have however no power to give relief with regard to any period prior to the date of complaint. The Tribunal held that it had powers to declare what was the reasonable rate to levy even from date prior to the date of complaint though it has no jurisdiction to order refund of the excess. The Railway felt that the Tribunal had exceeded its jurisdiction to order passing the order as they did and therefore filed a writ petition before the Madras High Court. –‘A’ & ‘B’ and Urea which are the end-products out of Naptha were being charged at a much lower rare whereas the raw material itself was being charge at much higher rate.. Naptha was the raw material for the fertilizer produce by the complainant.

It is distilled from Crude Oil. Fertiliser) was not sustainable for the following reasons: a) The general principles on the rate relationship between the raw materials and finished products should be treated as guidelines and should not be given the rigidity of rule or a principle. Transport of Naptha calls for special precautions. Empty haulage is 100%in the case of Naptha since released tank wagons cannot be back loaded with any other commodity. In other words.e. which is raw material for fertilizers and some other product. There can be no comparison while examining the raw material – finished product relationship between Naptha and Fertilisers for the following reasons: 1.1) The complaint that the rate on Naptha between Bajuva and Dadhevi was unreasonable on the ground that no relativity was maintained between the raw material (i. While examining the question of relativity due note must be take of the differences in the transportation characteristic of the raw material and the finished products. which is primary raw material. d) Naptha itself is not a primary raw material. 2. Naptha. e) Specially reduce rtes have been made applicable for fertilizer in public interest and this cannot therefore form the basis for comparison with the rate quote for Naptha. tank wagons while fertilisers are solid moving in conventional wagons.. Naptha is a liquid moving in special type of wagons i. Naptha is classified as a Dangerous commodity whereas Fertilisers are not 3. Even if such . is itself a finished product from crude oil. b) c) For these reasons the genera guideline that the raw material should normally be placed in a lower classification than a finished product does not apply in the case of Naptha. 2) It was also not accepted by the Tribunal that there were operating economics resulting from the bulk movement of Naptha.e.e. In the circumstances there was no question of maintaining relativity between Naptha and Fertilisers.Naptha) and the finished product (i. which are not necessary in the case of fertilisers.

as such department specialising in a particular field.economics were possible. b) “Periodical Loading statement” show the increase or number of tones originating in Zonal Railway c) “Commodity-wise loading statement” indicates the decrease in case of commodity mentioned therein. and Traffic and provides decrease in increase or . To assist in increasing the gross earnings To assist in eliminating the waste To assist in enhancing efficiency The first object of increasing the gross earnings is achieved by the compilation of the following Commercial Statistics. detailed statistics covering the various facets of working of each department is an essential requirement. a) “Tri-monthly statement of Advance Gross Earnings handled” enables the authorities to watch the trend of traffic figures for future planning. COMMERCIAL STATISTICS “STATISTICS IS A SCIENCE OF ESTIMATES AND PROBABILITIES” – Boddington Railway working is so complex that the overall efficiency of the organisation depends upon close coordination of the various departments. The object of statistic in Railway is three fold as under: 1. there was o reason why the Railway should reduce the rates or share the economy with the customer. The adverse effect arising out of free competition between rival producers does not therefore operate in this case since Government control has the effect of limiting such adverse effect. Hence for an efficient functioning of the organisation. 3) As regards the contention that there was undue preference to the other fertiliser factories which were located near the ports or the refineries it was held that there was no competition between the fertiliser produced by the complainant and the fertilizers produced by the other factories in a much as fertiliser was controlled and regulated commodity the distribution of which was controlled by the Government. 2. In the circumstances so long as there is o competition between the fertilizers produced by the complainant and by the other industries the question of undue preference does not arise. 3.

are grouped under this head. The power statistics included the Engine usage. train loads. The third object is achieved by the preparation and close scrutiny of the repairs and maintenance statistics. etc. train mobility. for current information. All the steps taken to increase the gross earnings are possible only when correct statistical figures are available. wagon usage. ... average rate per passenger or tonne kilometer and average lead of traffic etc. s y bad planning or method of working involve the Railways in a loss. The second object of eliminating the waste is achieved by the compilation of the Operating Statistics such as Wagon usage and Engine usage statistics.. etc. ECONOMIC & FINANCIAL STATISTICS: The detailed statistics related to the Advanced tri-monthly figures of earnings and traffic handled in the shape of passengers booked. Rolling sock repairs and Engine failure statistics. The main object is to do the maximum of work with the minimum of cost. COMMERCIAL STATISTICS: Commercial Statistics are commonly called revenue statistics. etc. The Principal Heads of Railway Statistics. wagon mobility. Coal & Oil consumption. 2. productive and unproductive services. 1. OPERATING STATISTICS: .From the Commercial Statistics the administration can know whether the traffic in passengers and goods is increasing or decreasing and the reasons for any fall in the traffic or increase in the traffic and as to what modifications re needed to remedy the situation. passenger kilometers. and the statistics of revenue and expenditure s booked in monthly and yearly count. wagon Mobility. Under this head the Statistics relating to the number of passengers. tonnes carried. The Operating statistics may broadly be divided as “Traffic statistics” ad “Power statistics. punctuality and wagon detention statistic. Wagon detention statistics.” The Operating statistics include the statistics of wagonloads. net Tonne kms. 3. etc.

engine failures. are compiled. etc. etc. 5. which are called “PRIMARY UNITS. vehicles.. etc. the Railway Statistics are based on the following four factors.Statistic regarding freight traffic and earnings by commodities claims paid for compensation of goods or parcels lost or damaged are also included in this category. pay Categories. STATISTICS: ROLLING STOK & WORKSHOP REPAIRS The statistic dealing with the repair an maintenance of rolling stock. gradients. are kept besides the physical statistics like number of station. are kept besides the physical statistics like number of stations.. 4. pay categories.. their numbers. Under this head the statistics relating to the number of passengers. curvatures of the permanent way. tones carried. gradients. Hence. net tonne kms. . wagons and engines COMMERCIAL STATISGTICS: Commercial Statistics are commonly called revenue statistics. UNITS IN RAILWAY STATISTICS: The main job of the Railways is to carry some QUANTITY of passengers and goods traffic to some DISTANCE under stipulated conditions of TIME BY THE MEDIUM OF SERVICE performed by the Railways. passenger kilometers. etc.”  QUANTITY – Expressed in number of tones and passengers transported and in earnings derived. incidence of sickness. curvatures of the permanent way. ADMINISTRATIVE STATISTICS: These statistics relating the staff matters. average rte per passenger or tonne kilometer and average lead of traffic etc.  DISTANCE – Expressed in kilometers  DURATION – Expressed in hours and days  SERVICE performed – Expressed in trains.

of wagons loaded.” The report also shows variations as compared to the corresponding period of the previous year. tonnage originating and tonne kilometers etc. Telegraphic report of Advance gross earnings: The stations send it periodically. 7. 8. 10. 2. Earnings for the period will be sent under the following heads:       Passenger earnings Other coaching earnings Total coaching earnings Goods earnings Sundry earnings Total gross earnings Advance Statement of Gross earnings and traffic handled at the station – SN-2 . 3. claim paid for compensation of goods or parcels lost or damaged are also included in this category. The volume of goods traffic measured in terms of the no.. 4.Statistics regarding freight traffic and earnings by commodities. It contains the figures of originating earnings under “Passenger. 5. Other Coaching. determine the important role in the economic development of the country The commercial statistics throw light o the freight traffic as originally planned and actually materialised The rate of increase in passenger or goods traffic also helps in future planning 9. Total Coaching. Goods and Sundry other earnings and Gross earnings. 6. The commercial statistics are compiled to watch the following: 1. Whether the traffic in passengers and goods is increasing or decreasing The reason for any fall or increase in the traffic Whether the increase in fare/freight rates tending to decrease in the average haul or decrease in passenger or goods traffic Whether introduction of concessions affecting adversely the normal traffic Whether the increase in rtes is higher than what the traffic can bear The effect of economic activities of the country on the trend of the traffic The comparative trends in the production and in the movement by rail of certain selected commodities.

Separate figures are exhibited for suburban and non-suburban traffic under the heads of different classes of accommodation and season tickets. Preparation of the statement: 1. 1 to 10th. Other Coaching Traffic: This shows the data for the current period. 2. 4. 3. 1. passenger earnings and causes of variations in earnings as compared to the corresponding period of the Previous year. This statement is more useful at the time of the presentation of the budget in the parliament in the month of February. The figures are shown under six different tables as under: st Table Table Table Table Table Table I II III IV V VI - Passenger traffic (In various classes) Other coaching traffic Goods traffic Sundry Earnings Gross Earnings Earnings by important commodities The earnings as reflected in the periodical statement of Advance Gross Earnings and Traffic handled is available at the Board’s office to know the trend of earnings for the Indian Railways as a whole. 5. It is sent to the statistical office o the day following the close of each tri-monthly period. 11th to 20th and 21st to the end of the month. Passenger Traffic: This would show the details of the number of passengers originating.. 2. corresponding period of the previous year and Causes for variations for the following description of traffic. Luggage including military baggage Horses.This return is prepared by each station for each 10-day period viz. The office copy should be retained for check by the inspecting officials. Carriages and Dogs Motor car traffic Penalties collected for irregular traveling Parcel “Outward Paid” traffic Special trains and reserved carriages . Hence due emphasis should be given on the correct compilation of this statement. 6.

Undercharges detected by the station staff t the time of delivery 5. Total (Item 1 to 4 minus item 5) 4. Total (Items 1 to 9 minus 10) 3. Demurrage. 11. 6. Other miscellaneous goods earnings 4. 10. Undercharge detected by the station staff at the time of delivery of parcels etc. Left luggage. Revenue earning traffic 2. Overcharge allowed by the station staff at the time of delivery of parcels etc. 2. Overcharges allowed by the station staff at the time of delivery 6. Goods Traffic: This shows the weight and earnings for the current period and corresponding period of the previous year with causes for variations in earnings in respect of the following items: 1. Miscellaneous other coaching earnings 9. Wharfage. 3 4 5. Demurrage. Wharfage and Storage collected 3. Earnings by important commodities: This would show the weight and earnings for the current and corresponding period of the Previous year along with the causes for .7. Storage collected on parcels 8. Telegraph earnings All other sundry earnings collected in booking office All other sundry earnings collect ed in goods office Total (Item 1 to 3) Gross Earnings: Gross Earnings of tables 1 to 4 are shown for the current period and the corresponding period of the previous year. Sundry Earnings: Earnings are shown for the current and corresponding period of previous year with causes for variations in respect of the following items: 1.

 each child ticket is count as one passenger  each return journey ticket as two passengers  each monthly season ticket as 50 passengers  each quarterly season ticket s 150 passengers  each circular journey ticket per passenger s single journey ticket  each BPT per passenger as single journey ticket  each Soldier ticket for party of military personnel as per no. shall be accounted in the “Passenger earnings” column.” The amount of penalties colleted for irregular traveling (By TCs of the station and TTEs of the same station or other stations) shall be included against the head “Penalties collected for irregular traveling”. The difference in fares collected in case of change in class shall be shown against the higher class The amount collected toward the penalties levied on passengers for irregular travel or for the unbooked luggage shall not be included in the Passenger traffic earnings In case of combined train ticket or combined class ticket. Instructions to fill up the S. of military personnel Excess Fare Tickets issued for journey extension or change of class shall not be accounted as separate passenger But the amount of fare for passenger traveling without ticket or for extension of journey or change of class collected both by the TCs at the station and the amount remitted by the TTE of the same station or other stations who remitted their cash t the station. - . – Statement: I.N. II Other Coaching Traffic: The amount collected a penalty for unbooked luggage by TCs of the station and TTEs of the same station and other stations who remit their cash at the station shall be included against the head” Luggage including military baggage. Passenger Traffic: To calculate the number of passengers.variations in respect of some 20 important Commodities originating on the Railway. the earnings will be shown against the train or class in which the traffic first originates.

Other Miscellaneous goods earnings hall include all other sundry goods earnings such as.The amount of under charges detected at the time of delivery of parcels should be included . Goods Traffic: In case of rebooking of goods.The amount of deposits. The amount collected on outward consignments. the “Paid on charge” should be included. like Wagon demand registration fee should not be included. Storage.The amount of overcharges refunded at the time of delivery of parcels should be deducted from the earnings .  Platform tickets and Platform permits  Retiring room charges  Percentage charges deducted on unused tickets and clerkage charges .. which are refundable.Paid on charges in case of rebooked parcels should be excluded . inward consignments and rebooked consignments should be shown. Wharfage.Miscellaneous other coaching earnings shall include all other items not included under the above heads such as. etc.Left Luggage. the amount collected should be included and not the amount accrued. shall not be included III. Sundry Earnings: . - - - IV.  Crane charge  Siding charges and Shunting charges  Re-weighment charges  Diversion fee  Unloading charges The mount of undercharges detected on inward consignments should b shown The amount of overcharges refunded at the time of delivery of inward consignments should be adjusted from the goods traffic earnings Amount of deposits. but the “To pay” freight in respect of traffic from our station to the new destination should be included Against the heads Demurrage. shall be included under the respective heads . etc. Demurrage charges.

Earnest money deposit by contractors and vendors Deposit by stores contractors Deposits by private parties for railway claims Security deposits Deposit fee for requisition of coaching stock Shortage in cash remittance subsequently remitted by staff Amount towards indemnity bonds Value deposit money collected from the consignee in the absence of PWB  School fees deposited at station         -Items to be included in the statement:                    Bed roll charges Rent of buildings and land Sale of time tables and tariffs Sale of railway concession books Sale of trees on line Sale proceed of auction sale of unclaimed and damaged goods Cost of tender forms Excess in booking Hand cart license fees Hire charges for motor cars Licensed porter fees Amount of catering (excluding sales tax payable to state government) Advertisement fees Interest and maintenance charges in respect of (1) Sidings (2) Level crossings from private parties Amount of wagon registration fees forfeited Railway doctor’s visit fees remitted by passengers The amount collected in respect of penalty for cancellation of reservations of railway free passes Diet charge recovered from Railway servants in railway hospitals Sale of plastic covers Commodity Wagon loading Statement – SO-24 .

2. Separate statements are prepared for broad. 3. 4. metre and narrow gauges. Metre and Narrow gauges  Weight charged for should be taken. A. patent fuel and railway materials and stores booked on RMC Note are shown separately. Revenue earning traffic and Non-revenue earning traffic are separately shown in this statement. Products of Agriculture Products of mines Mineral oils Manufacturers Miscellaneous B. of wagons loaded and the weight loaded into them at stations. non-government railways ad government departments are sown separately. 5. Non-Revenue traffic: 1. When charges are based on the floor area or at wagon kilometer or lump sum wagon rate and in the case of military consignment in wagon load charged on kilometer basis the average weight per wagon shall be determined in consultation with the Commercial branch of the Zonal Railway. coke.  Kit and other materials booked free shall be shown separately.  Traffic received from Out-agencies should be accounted for by the respective serving stations along with the local loading at the station. In this register figures should be posted daily and summarised periodically for incorporation in the periodical statement. . Railway coal and materials Total = Revenue + Non-revenue Public traffic at coaching rates Kit and other material booked free Instructions to fill up the SO. 3.  Wagons loaded with freight on which revenue is earned from the public.  A register of wagons loaded showing all the information required to be furnished under different heads detailed in the statement should b maintained by all stations. 4.This statement is to show the no. Revenue earning traffic: 1. 2. – 24 statement:  Separate statements are to be prepared for Broad.  Wagons loaded with Non-revenue traffic such as Railway Coal.

6. 7. are to be excluded from the statement. The amount remitted by TCs and TTEs are not correctly segregated under class-wise.  Wagons are to be counted in terms of 4 – wheelers as follows: IN TERMS OF WAGON TYPE 4-WHEELER 1 Six Wheeler 1 four Wheeler 1 Bogie 2 four Wheelers 1 Twelve Wheeler 3 four Wheelers 1 BOBX 3 four Wheelers 1 BRS/BRH 3 four Wheelers 1 BOI 3 four Wheelers 1 BWT 3 four Wheelers 1 BOX 3 four Wheelers  The following wagons should not be accounted as fresh loadings: 1. of passengers in respect of BPTs and Soldier tickets are not correctly accounted for. Wagon loads diverted 6. 4. In respect of cancellation of Reserve tickets. 2. . A separate register for “Advance gross earnings statement” is not being maintained. No. the number of passenger and earnings thereof are not correspondingly deducted. circular ticket and concessional tickets are either exchanged or wrongly calculated. Wagon loads received for weighment/re-weighment and despatched Common irregularities in preparation of statements at Stations: 1. No. 4. of passengers availing of return tickets. Departmental Wagons loaded by the owning department and vehicles loaded or lent to the Engineering or other department for carriage of departmental stores or used on ballast trains. 3.. The No. penalty and unbooked luggage. etc. 2. 3. of passengers detected traveling without ticket are either exclude or not accounted for under correct classes. Infringement loads adjusted at enroute Seal cut and seal missing wagon checked at enroute Unconnected load detained and sent on receipt of particulars Wagon loads with excess permissible load sent after unloading the excess weight 5. 5. Under charges realize at the time of delivery is not included.

15. 11.” Misc. Weight of RMC is calculated on n approximate basis. Unloading charges. 23. 21. etc. 13. are not included under “Misc. Under charges detected and recovered at the time of delivery are not included. Actual weight is worked out instead of charged weight. Demurrage/Wharfage foregone is not excluded.8. Loading statement is prepared not on the basis of invoices issued. Siding Charges. 17. Instead Actual weight of goods is accounted. 26. Platform tickets.” Charged weight is no being accounted. are wrongly included under sundry earnings. Accountal of wagons is not done in term of 4 – wheelers. of passengers in this case should not be clubbed with “Passengers originating. Over charge allowed by the stations at the time of delivery are not excluded. 20. Reasons for variation in the traffic: The Supervisor should invariably give the reason for variations in the traffic as compared with the traffic of corresponding period of the previous year under the relevant columns.. viz.wise weights reported in the statement are not correctly worked out. 14. The forfeited WDR Fee is not included in the earnings. 18. RRT. Out-agency and “Paid-on” charge in respect of rebooked consignment are wrongly treated as earnings. Kit wagons are omitted. goods earning. ... etc. Out-agency charges are wrongly included in the parcel earnings. Value deposit money collected from the consignee in the absence of PWB is wrongly accounted under “Other Coaching earnings” It should be excluded. Earnings from reserved carriages are indicated wrongly under “Passenger earnings” instead of under “Other Coaching earnings. WDR Fee is wrongly included in the earnings. other coaching earnings. 19. Weight of livestock is not being accounted. They should not be accounted as earnings. 12. 16. Commodity. 24.” Also the no. 10. 22. instead based on stock report position. 9. 25.