Indian Railways introduces surcharge exemption for major commodities

Major commodities transported by Indian Railways such as cement, clinker, coal, food grains and fertilisers will be exempt from a 15 per cent surcharge between 1 October 2019-30 June 2020. Usually, between October and June, a surcharge of 15 per cent is levied on base freight and is known as a busy season surcharge (BSC).

Furthermore, a five per cent supplementary charge on mini and two-point rakes has also been waived off. "BSC, which is levied at 15 per cent from 1 October-30 June, has been deferred till further advice. The five per cent supplementary charges applicable on loading on mini and two-point rakes are being waived off. This is likely to boost loading of smaller cargo sizes and help cement, steel, food grains and fertilisers loading," according to a Ministry of Railways press release.

The plans are expected to help capture additional traffic to railways and also benefits freight customers.