Railways extend lean season rebate

The railway ministry has extended the lean season discount for carrying commodities by another two months. The scheme was effective from July to September.

In addition, discounts for commodities on certain notified directions, where wagons generally go empty, would also be available throughout the year as opposed to just during the lean season.

While during the lean season, a 15-per cent discount is available, customers can avail a discount of 20 per cent under the empty flow direction for high-end commodities like steel and petroleum.

The ministry will introduce further changes in the empty-flow direction scheme, by increasing the number of commodities covered. The scheme will now also apply to foodgrains for export, iron ore and minerals.

"We are extending the discounts to attract more traffic, as we have a surplus of about 20,000 wagons lying with us," a ministry official said.

While during the lean season, a 15-per cent discount is available, customers can avail a discount of 20 per cent under the empty flow direction for high-end commodities like steel and petroleum.

The ministry will introduce further changes in the empty-flow direction scheme, by increasing the number of commodities covered. The scheme will now also apply to foodgrains for export, iron ore and minerals.

Ministry officials added that the rebate in the empty-flow directions would now be available for every incremental unit of traffic. Earlier the discount was available for incremental loading over the 10 per cent growth in the traffic.

In addition, discounts available under the scheme would apply to traffic originating from ports also, which was excluded from the original scheme, they said.

The railways were losing their traffic from ports and wanted to consolidate in this area.

The ministry has also extended the scheme for two-point loading (where customers can unload at more than one destination) till November 30. Usually, a customer can unload at only one station.

Officials also said in order to garner more traffic, the railways were looking at forging partnership with transporters, where the railways carry the long-haul traffic, while the transporters concentrate on the short distance traffic.

"We will soon come up with a policy, where the transporters would also benefit with lower cost of transportation. This in turn will help them in reducing their freight rates," an official said.