| QUOTATION OF STATION TO STATION RATES (STS) |
| To attract additional traffic by offering freight discount 1. Applicable to both existing as well as new traffic. 2. Station - to - station concession in freight rates will be applicable to a specific stream of traffic of a particular commodity for movement between a pair of specific originating and destination stations. 3. The concession can be granted either to a consignor or a consignee both for 'paid' and 'to pay' and only for block rate traffic. 4. Concession under Station to Station scheme will be granted only if the Rail user offers written commitment to move traffic equal to or higher than the benchmark level during the proposed period. 5. The Station to Station Concession will be in the form of percentage discount, over the prevailing freight rates and only on that volume of traffic to which concession under no other scheme has been granted. 6. No concession in freight rates will be granted in respect of the following commodities:- All commodities with classification below dass-110. Coal (all types) Lignite Livestock e) 'Dangerous' commodities or those having suffix 'd' with their nomenclature in the Goods Traffic except P.O.L. products. 7. Station to Station concession in freight rates may be granted for a period of not less then three months and not more than twelve months. For new traffic, it may be granted for a maximum period of three years. 8. Concession under the scheme will be granted only on the 9. The applicant will be required to furnish a General Indemnity Bond to pay under charges equivalent to the total amount of freight concession proposed to be availed to indemnify the Railways against loss of revenue in case of non-fulfillment of the commitment. 10. The maximum level of Station to Station concession would be as follows:- |
| Group | Commodities classified at |
Maximum concession in freight rates on the retained traffic offered up to the benchmark |
Max. concession in freight rates on the incremental traffic offered above the benchmark |
| I | Class-110 to Class-135 | Upto10% | Upto12% |
| II | Class-140 to Class-175 | Upto12% | Upto18% |
| III | Class-180 to Class-300 | Upto15% | Upto24% |
For the same commodity, the rail user offering higher incremental volume of traffic may be considered for higher concession.
The level of freight concession for existing traffic would also depend upon the need for retaining the existing level of earnings from that traffic as well as other factors like competition from road traffic, idling or rolling stock etc.
Modalities:
Rail users desirous of availing STS concession in freight rates will be required to apply for the same giving written commitment in respect of traffic to be offered, in tonnes, during the proposed period. STS concession in freight rates may be granted for a period of not less than 3 (three) months and not more than 12 (twelve) months.
For the "New" traffic, concession in freight rates may be granted for
maximum period of 3 (three) years.
The applicant will also be required to furnish a General Indemnity Bond to pay undercharges equivalent to the total amount of freight
concession proposed to be availed to indemnify the Railway against loss of revenue in case of non-fulfillment of the commitment in respect of traffic offered for rail movement under this scheme. If the applicant is a "Consignee" the General Indemnity Bond should be endorsed by the consignors).
Concession in freight rates under the STS Scheme will be granted only the recommendations of both CCM and COM, duly concurred by FA & CAO and with personal approval of the General Manager of the Zonal Railway.
Traffic in respect of rail users who have been granted concession in
freight rates under the STS scheme will be booked at the reduced
freight rate in case of "Paid" traffic.
In case of "To Pay" traffic, STS concession would be leviable on the normal freight rate and will be granted as a refund to the rail user on quarterly basis on fulfillment of the commitment. The To-Pay" surcharge will be calculated at the destination on normal freight rate as per the extant rules.
Zonal Railways should raise undercharges against the rail user who fell to fulfill their commitment of offer of traffic as para 5.0 and initiate action to invoke the General Indemnity Bond to recover the amounts due to the Railways.
Zonal Railways may forward such proposals for STS concession in
freight as are not covered under these guidelines, to Railways Board with full details and complete Justification. Such proposals must have recommendations of both CCM and COM, concurrence of FA & CAO and personal approval of the General Manager.