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Merry-Go-Round System in Railways

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Capital Market
In order to provide an economical and reliable alternative short lead traffic, a rationalized scheme with lump-sum rates for Merry-Go-Round has been notified with effect from 01 April 2016. Some of the features of this scheme are as under:

The MGR Terminals at both ends shall be privately owned.

Rail track between the two terminals will be provided by the customer.

Railways will provide locos, wagons, brake-vans and other rolling stock as per requirement for running of the rakes under MGR system.

Terminals at both ends will operate round the clock.

Lump-sum rates charged under the MGR System would depend upon the number of rakes loaded per day and the lead of traffic.

 

For 18 km lead, the average MGR rate for 2-3 trips per day is around ? 47 per tonne.

Expected traffic under this scheme is around 4-5 million tonnes in the financial year 2016-17.

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First Published: Apr 27 2016 | 5:25 PM IST

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