{"id":2419,"date":"2025-07-25T11:57:45","date_gmt":"2025-07-25T11:57:45","guid":{"rendered":"https:\/\/railtravels.org\/?page_id=2419"},"modified":"2025-07-25T11:57:45","modified_gmt":"2025-07-25T11:57:45","slug":"freight-incentive-scheme-in-indian-railway","status":"publish","type":"page","link":"https:\/\/www.reilsolar.com\/train\/freight-incentive-scheme-in-indian-railway\/","title":{"rendered":"Freight Incentive scheme in Indian Railway"},"content":{"rendered":"

Freight Incentive scheme in Indian Railway<\/strong><\/p>\n

Western Railways\u2019 Freight Incentive Schemes provide ease of business to the customers<\/strong><\/p>\n

Various railway incentive schemes for transportation of goods & parcels has been introduced by Western Railways. The Freight Incentive Schemes provide ease of business to the customers and also garner additional volume of traffic and revenue to the railways. Thus, these schemes based on the existing traffic pattern, results in win-win situation for the freight customers as well as for Railways.<\/p>\n

Except for Station to Station Rates and Long-term Tariff Contract, all the incentives\/ benefits are provided at the Goods shed itself based on the traffic offered and the scheme guidelines. Some of the major schemes available for transportation of goods through Railways are outlined below:<\/p>\n

    \n
  1. Station To Station Rates (STS)<\/strong><\/li>\n
  2. Liberalised Automatic Freight Rebate Scheme on traffic booked in Traditional Empty Flow Direction (TEFD)<\/strong><\/li>\n
  3. Long Term Tariff Contract (LTTC)<\/strong><\/li>\n
  4. Freight Forwarder Scheme<\/strong><\/li>\n
  5. Relaxation for loading of Steel pipes through Railways<\/strong><\/li>\n
  6. Relaxation for loading of Petcoke through Railways<\/strong><\/li>\n
  7. Concession for non-refined Salt for human consumption through Railway<\/strong><\/li>\n
  8. Freight Incentive Scheme for loading bagged consignment in open & flat wagons<\/strong><\/li>\n
  9. Freight Incentive Scheme for Loading of Fly Ash<\/strong><\/li>\n
  10. Round Trip Traffic (RTT)<\/strong><\/li>\n
  11. Short Lead Traffic<\/strong><\/li>\n
  12. Long Lead Traffic<\/strong><\/li>\n<\/ol>\n

    These schemes have been designed especially for freight transporters and Western Railway is requesting them to come forward and grab these attractive schemes. For further specific details of these schemes, the Rates Circulars as mentioned above can be accessed on the below mentioned link and Senior Divisional Commercial Managers (Sr. DCM) of various divisions over Western Railway can also be contacted for any assistance in this regard.\u00a0indianrailways<\/a><\/p>\n

    Here’s a comprehensive overview of the Freight Incentive Schemes<\/strong> offered by Indian Railways<\/strong>, aimed at boosting cargo traffic, improving cost-efficiency, and promoting modal shift from road transport:<\/p>\n

    \n

    \ud83d\ude9b Key Freight Incentive Schemes<\/h2>\n

    1. Traditional Empty Flow Direction (TEFD)<\/strong><\/h3>\n

    Automatically offers 15\u201320% freight rebate<\/strong> for traffic booked over 100\u202fkm in designated empty return corridors. Booking is done at normal tariff; rebate applied at billing. No application needed.<\/p>\n

    2. Long-Term Traffic Contract (LTTC)<\/strong><\/h3>\n

    Provides stable freight rates for one year<\/strong>, regardless of tariff hikes. Offers incremental rebates if customers exceed previous year\u2019s Gross Freight Revenue (GFR), and retention discounts if volumes are maintained year-on-year. Requires agreement via zonal railways.<\/p>\n

    3. Station-to-Station (STS) Rates<\/strong><\/h3>\n

    Targeted at specific commodity streams between defined origin-destination stations. Offers up to 30% discount on new\/incremental traffic<\/strong> and 15% retention discount<\/strong>. Container traffic can get up to 15% after benchmarks. Excludes commodities like coal, iron ore, POL, military traffic.
    \nRequires direct application to Divisional Commercial Manager.<\/p>\n

    4. Round Trip Tariff (RTT)<\/strong><\/h3>\n

    Applicable when customers commit to return traffic within 200\u202fkm of the source. Both outward and backward traffic are charged at the lower applicable freight class<\/strong>. Generally capped at maximum discount of ~10% (coal\/coke).
    \nRequires application to respective zonal railway.<\/p>\n

    5. Short-Lead and Long-Lead Concessions<\/strong><\/h3>\n
      \n
    • Short Lead (0\u201350\u202fkm, up to 100\u202fkm):<\/strong> Discounts ranging from 50% to 10%<\/strong> on Normal Tariff Rate (NTR), except for coal, iron ore, container traffic.<\/li>\n
    • Long-Lead:<\/strong> Discounts (~15\u201320%) for select commodities (e.g., iron ore, steel, coal) moving over a specified distance threshold (>700\u202fkm or >1,400\u202fkm).<\/li>\n<\/ul>\n

      6. Mini Rake Scheme & Loading Incentives<\/strong><\/h3>\n
        \n
      • Mini\u2011rakes<\/strong> (\u226520 wagons) can be booked under train-load class tariffs; supplementary charges may still apply depending on commodity\/distance.<\/li>\n
      • Bagged Consignment Discount<\/strong>: Up to 30% rebate<\/strong> for moving commodities like cement, grains in open\/flat wagons due to low availability of covered wagons.<\/li>\n<\/ul>\n

        7. Freight Forwarders Incentive<\/strong><\/h3>\n

        Encourages aggregators to combine multiple commodities in a single rake and offers train\u2011load class billing, making it feasible for smaller shippers.<\/p>\n

        8. Other Supporting Incentives<\/strong><\/h3>\n
          \n
        • No terminal charges<\/strong> (~\u20b920\/tonne) when using alternative goods sheds nominated by railways.<\/li>\n
        • 25% discount on empty container or flat wagon movements<\/strong>, to promote return loading.<\/li>\n
        • Waiver of 5% supplementary charges<\/strong> on mini and two-point rakes.<\/li>\n<\/ul>\n
          \n

          \ud83d\udee0\ufe0f Private Wagon Operators (GPWIS & LSFTO)<\/h2>\n

          General Purpose Wagons Investment Scheme (GPWIS)<\/h3>\n

          Under this scheme, private entities procure GP wagons for up to 15-year circuits. They receive a 10% rebate<\/strong> on freight per RR for loaded runs, capped to lease charges paid by Indian Railways. Includes automatic rebate systems and exemption on empty run charges.<\/p>\n

          Liberalized Special Freight Train Operator (LSFTO)<\/h3>\n

          Privately operated special-purpose wagons (e.g. auto-car carriers, chemical tankers) qualify for a 12% rebate<\/strong> on freight charges, valid for 20 years. Designed to service non-traditional or under-served commodity verticals.<\/p>\n

          \n

          \ud83d\udccb Quick Reference Table<\/h2>\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n
          Scheme<\/th>\nRebate \/ Benefit<\/th>\nEligibility \/ Notes<\/th>\n<\/tr>\n<\/thead>\n
          TEFD<\/td>\n15\u201320%<\/td>\nAuto-applied for routes with empty return flows<\/td>\n<\/tr>\n
          LTTC<\/td>\nFixed rates + growth\/retention rebates<\/td>\n1-year contract; applies to total GFR<\/td>\n<\/tr>\n
          STS (Station-to-Station)<\/td>\n\u25b230% \/ 15%<\/td>\nRequires zonal application; selective commodities<\/td>\n<\/tr>\n
          RTT<\/td>\nCharged at lower of two-way<\/td>\nRequires round-trip booking commitment<\/td>\n<\/tr>\n
          Short-Lead Discount<\/td>\nUp to 50%<\/td>\nFor \u2264100\u202fkm (excl. coal, iron ore, containers)<\/td>\n<\/tr>\n
          Long-Lead Discount<\/td>\n~15\u201320%<\/td>\nCommodity-specific with distance thresholds<\/td>\n<\/tr>\n
          Mini Rake + Bagged Loading<\/td>\n30% discount<\/td>\nApplied at booking via RR<\/td>\n<\/tr>\n
          Freight Forwarders<\/td>\nTrain-load rate pricing<\/td>\nAggregators book mixed consignments<\/td>\n<\/tr>\n
          Alternative Goods Shed Usage<\/td>\n\u20b920\/tonne terminal waiver<\/td>\nWhen using nominated sheds<\/td>\n<\/tr>\n
          Empty Wagon Discount<\/td>\n25%<\/td>\nTowards ports or depots to return loaded traffic<\/td>\n<\/tr>\n
          Mini \/ Two-Point Rake Waiver<\/td>\nNo 5% charge<\/td>\nApplicable per exemption policies<\/td>\n<\/tr>\n
          GPWIS (Private Wagons)<\/td>\n10% for 15 years<\/td>\nPrivate wagons in closed circuits<\/td>\n<\/tr>\n
          LSFTO (Special Wagons)<\/td>\n12% for 20 years<\/td>\nOperated by private freight companies<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n
          \n

          \ud83d\udd0d Why It Matters<\/h2>\n
            \n
          • Multiple zonal and regional railways\u2014including North East Frontier<\/strong>, Western<\/strong>, and others\u2014actively promote these schemes as part of cargo expansion strategies.<\/li>\n
          • These concessions aim to make rail freight fare-competitive vs road transport\u2014especially for perishable, agricultural, and containerized goods.<\/li>\n<\/ul>\n
            \n

            \u2705 For Potential Freight Customers<\/h2>\n
              \n
            1. Check eligibility<\/strong> with your commodity and station pairs.<\/li>\n
            2. Apply via zonal railway<\/strong> (e.g. STS, LTTC, RTT) if required.<\/li>\n
            3. Ensure your routes qualify<\/strong> for TEFD; internal FOIS system applies rebates automatically.<\/li>\n
            4. Explore private wagon options<\/strong> like GPWIS or LSFTO if you operate large volume or specialized cargo.<\/li>\n
            5. Track other services<\/strong> like Mini-rake, Kisan Rail, Vyapar Mala Express for logistics flexibility.<\/li>\n<\/ol>\n
              \n

              Would you like help checking which scheme fits your specific commodity\/station pair? Or need contact details for zonal Commercial Managers to initiate agreements?<\/p>\n","protected":false},"excerpt":{"rendered":"

              Freight Incentive scheme in Indian Railway Western Railways\u2019 Freight Incentive Schemes provide ease of business to the customers Various railway incentive schemes for transportation of goods & parcels has been introduced by Western Railways. The Freight Incentive Schemes provide ease of business to the customers and also garner additional volume of traffic and revenue to […]<\/p>\n","protected":false},"author":102,"featured_media":0,"parent":0,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"","meta":{"footnotes":""},"class_list":["post-2419","page","type-page","status-publish","hentry"],"_links":{"self":[{"href":"https:\/\/www.reilsolar.com\/train\/wp-json\/wp\/v2\/pages\/2419","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.reilsolar.com\/train\/wp-json\/wp\/v2\/pages"}],"about":[{"href":"https:\/\/www.reilsolar.com\/train\/wp-json\/wp\/v2\/types\/page"}],"author":[{"embeddable":true,"href":"https:\/\/www.reilsolar.com\/train\/wp-json\/wp\/v2\/users\/102"}],"replies":[{"embeddable":true,"href":"https:\/\/www.reilsolar.com\/train\/wp-json\/wp\/v2\/comments?post=2419"}],"version-history":[{"count":0,"href":"https:\/\/www.reilsolar.com\/train\/wp-json\/wp\/v2\/pages\/2419\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.reilsolar.com\/train\/wp-json\/wp\/v2\/media?parent=2419"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}