Indian Railways will charge a busy season surcharge of 15% on goods that are transported by freight trains. This charge will be levied on all goods except coal, coke fuel, containers and automobiles.
The circular: As per the Indian Railways' recently released circular dated September 27, 2022, called ''Dynamic Pricing Policy – Levy of Busy Season Charge, Development Surcharge and Congestion Charge'', Indian Railways will levy a 'busy season surcharge' of 15% on goods traffic from October 1, 2022.
What is this 'busy season surcharge'? This surcharge was announced in 2015 and is levied on transportation of all commodities except coal, coke (fuel, not your soft drink or the drug), and containers and automobiles moved in certain wagons.
Why was the surcharge withdrawn? The Railways had withdrawn the charge on October 1, 2019, due to the slowdown in economic activities in the nation. The charge was waived for all goods except iron ore and petroleum, oil, and lubricants.
What's the impact: The withdrawal of the surcharge in 2019 led to a rise in freight loading as Indian Railways reported a record-high loading for two straight years till August 2022.