Access Charges to DFCCIL

Access Charges to DFCCIL

What are Access Charges?

Access charges are fees paid by Indian Railways to DFCCIL (Dedicated Freight Corridor Corporation of India Limited) for using the dedicated freight corridors (DFCs) for freight transportation. These charges ensure cost recovery for DFCCIL while maintaining affordable and efficient freight services for Indian Railways.

DFCCIL is responsible for the operation and maintenance of these dedicated freight corridors, ensuring seamless freight movement across India.

Key Aspects of Access Charges

1. Purpose: To recover asset & usage cost of corridor

Components of Access Charges

1. Track Usage Fee

• Charges for using DFCCIL’s railway tracks, similar to toll charges on highways.

1. Terminal Charges

• Fees for utilizing DFCCIL-operated terminals for loading/unloading.

1. Maintenance Charges

• Cost recovery for maintaining infrastructure, signalling, and power systems.

1. Overhead Costs

• Charges covering administrative and operational overheads.

1. Performance-Based Charges

• Additional charges/discounts based on punctuality, load efficiency, and train performance.

2. Computation Basis

Access charges are calculated based on:

• Gross Tonne Kilometres (GTKMs) — The weight of freight multiplied by the distance travelled.
• Train Path Allocations — Reservation of freight slots on DFCs.
• Distance Covered — Longer distances attract higher charges.

💡 DFCCIL structures access charges to encourage higher utilization and efficient freight movement.

3. Mutual Agreement

• Rates are determined through mutual discussions between Indian Railways and DFCCIL.
• The charges are reviewed periodically to reflect cost variations and operational requirements.

4. Revenue Sharing & Financial Sustainability

• DFCCIL uses access charges to repay loans taken for DFC construction and maintenance.
• Revenue from access charges contributes to the long-term financial stability of DFCCIL.

5. Operational Benefits

• Decongests Passenger Rail Lines — Freight trains move on DFCs, freeing up Indian Railways’ passenger corridors.
• Enhances Freight Efficiency — Higher speeds and reliability for freight transport.
• Boosts Economic Growth — Faster movement of goods supports industries and trade.

Financial Classification of Access Charges

As per the latest classification in Finance Code Volume 2:

• Major Head: 3002 — Indian Railways Working Expenses — Commercial Lines
• Erstwhile Demand №09 — Sub Major Head: 07 (Operating Expenses — Traffic)
• Detailed Head: 735

Authority

• RBA №33/2024 — Advanced Correction Slip (ACS) №11 to Finance Code Volume 2

Access charges facilitate a strong partnership between DFCCIL and Indian Railways, ensuring a well-maintained, high-capacity freight transportation network in India.