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Subject : Important Freight policies 2020

Letter No : Updated upto Sep 2020

Subject matter of the circular
Details of Freight Policy Measures
To promote economic activities in the country during covid pandemic, Indian Railways has taken a number of freight policy measures. More relaxations have been provided to the customers by slew of incentives announced by Indian Railways. These incentives are expected to boost the economy of the country. Details of the initiatives duly referring circular/policy letter are given below. For details of the initiatives, customers may visit the Traffic Commercial Directorate of at Indian Railways website ( Customers may get in touch with Sr. Divisional Commercial Manager at division level or Chief Commercial Manager (FM) at zonal railway level for any freight traffic related query. Customers may also visit the website of FOIS ( to know more about freight traffic and policies.
i) Automatic Freight Rebate Scheme for traffic loaded in Traditional Empty Flow Directions (TEFD) under which discounted freight is charged at Class LR1/Class 100/Class 110 for train load/wagon load respectively), if traffic is booked in notified empty flow directions. Discount is granted through system. Terms & conditions as per the circular apply
(Rates Circular No. 8 of 2020 and its corrigendum No.1 dt.30.06.2020)
ii) Long Term Traffic Contract (LTTC) is a policy which provides freight stability to its customer in the current year of the agreement alongwith the rebate in freight based on incremental growth in Gross Freight Revenue GFR). Rebate is also available for retention of GFR in each year of the agreement period.
(Rates Circular No.14 of 2017)
iii) Busy Season Charge which was levied during busy season @15% on all goods traffic has been withdrawn from 01.10.2019 for all traffic; except Iron Ore and POL traffic.
(Corrigendum No.1 dt.12.09.2019 to Rates Master Circular/Dynamic Pricing Policy/2015/0)
iv) Round Trip Tariff (RTT) policy has been implemented from 01.07.2020. Discount is granted to traffic if booked in the return direction, by way of charging the return traffic at lower of the two classes.
(Rates Circular No.11 of 2020)
v) Incentive to fly ash: 40% discount in freight is granted to fly ash traffic booked in bagged condition or in bulk/loose condition when loaded in Open Stock. If it is loaded in bagged condition, then flat wagons are also granted 40% concession; and Covered wagons are charged at Class LR1.
(Rates Circular No.09 of 2020 and its corrigendum No.1 dt.03.08.2020)