The Ministry of Railways has decided to withdraw the Busy Season Charge levied on all commodities loaded in Covered Stock for two months. This will be applicable from 1st May 2016 to 30th June 2016. This was announced by the Railway Minister Suresh Prabhakar Prabhu in a programme today.
It is expected that by this policy initiative of withdrawal of Busy Season Charge, there would be a likely increase in loading by around 6-7MT, which will more than compensate the financial loss due withdrawal of this surcharge.
In the Railway Budget for 2016-17,it was declared that a review of tariff policy would be undertaken to evolve a competitive rate structure vis-à-vis other modes, permit multi point loading / unloading and apply differentiated tariffs to increase utilization of alternate routes. It was also stated that the current tariff structure of IR has led to out-pricing of its services in the freight market.