Railway Board Changes Rules for Penalty Waivers on Goods Delay from July 1
Reported by Amit Singh
New Delhi, 25th June 2025: The Ministry of Railways has issued Corrigendum No. 58, revising the guidelines for waiver and write-off of Demurrage and Wharfage charges across all Zonal Railways, effective July 1, 2025. The instructions supersede earlier circulars and lay out a modified Standard Operating Procedure (SOP) and revised eligibility conditions for applications and appeals related to these charges.
Under the new framework, the delegation of authority to waive Demurrage and Wharfage has been restructured. Assistant General Managers (AGMs) are now empowered with full authority to waive both Demurrage and Wharfage charges per wagon and per consignment, respectively. Other designated officials—including PCCMs, HODs, DRMs, and ADRMs—have specified financial limits under which they can authorize waivers.
Finance concurrence is now mandatory for all waiver cases exceeding ₹25,000 per wagon or per consignment. Applications for waiver must be submitted through the FBD portal within ten days from the date of accrual. In large sidings such as power houses and steel plants, the time limit for application extends to the following month.
The guidelines strictly prohibit waivers where delays were due to factors within the control of the consignor or consignee. Only cases attributed to force majeure—such as natural disasters, curfews, strikes, accidents, and administrative restrictions—or operational exigencies will be considered for waiver.
The policy mandates that all waiver decisions must be supported by reasoned speaking orders. In sidings with frequent demurrage, broader justifications may suffice.
For appeals, stakeholders can escalate their grievances through the FBD portal, limited to two levels, with the AGM being the final authority. Refunds, where sanctioned post-waiver, must follow prior account verification, ensuring the railway has received the payment. No refunds will be processed without adherence to waiver procedures.
The revised procedure will also apply to DFCCIL until other operators enter its network. All Zonal Railways are directed to implement the changes and provide feedback on operational and business impacts for further review.
The notification has been issued with the concurrence of the Finance Directorate and in consultation with the Freight Marketing and Traffic Transportation Directorates.
