This document outlines the policies for leasing SLRs (brake vans), AGCs (assistant guard's compartments), and VPs (parcel vans) on Indian Railways. Key points include: 1. Leasing is only permitted on BG sections for SLRs/AGCs and Mail Express trains can lease VPs. Interested parties must register with the appropriate division/zone. 2. Tenders are invited for leasing spaces and contracts are awarded based on bids. The minimum bid must be 50% of the reserve price set by Commercial department. 3. Lease durations and amounts are determined based on the bid rate - higher bids qualify for longer term leases.

1. LEASING OF VP/SLR/AGC
POLICY FOR LEASING OF SLR:
 A comprehensive leasing policy is issued by Railway Board vide FM-12 in the
year 2006, with a view to make the scheme attractive , customer friendly and
also simplify the rules of leasing.
 Keeping customer oriented aspects into view, and for better discipline with the
changing trends, a fresh Comprehensive Parcel Leasing policy is issued vide
FM-6-2014., by Railway Board.
APPLICABILITY:
1. Leasing of SLR/AGC/ by all trains in BG Section only.
2. Leasing of AGC by Garib rath trains not allowed
3. Leasing of VP (Parcel Vans) by Mail Express trains. Leasing of VP by ordinary
trains and Rajadhani/Shatabdi/Janshatabdhi/Duronto trains is not permitted..
4. Maximum of 3 SLR’s Can be leased as each unit of 4 Tonnes.. In case of engine
reversal enroute only two (02) SLR’s one in front and one rear can be leased.
REGISTRATION PROCEDURE:
 Interested parties/ firms/ agencies /individuals can register themselves with the
Division/Zone by submitting application in prescribed format with following
documents
(1) Copy of Address proof
(2) Copy of Firm/Company/Society registration
(3) Attested Copy of PAN Card
(4) Copy of Audited B/S and P & L account for Turnover
(5) Photo of LH & Representatives
(6) Registration Fee and Applicabiolity of Category depends on turnover as given
below:
CATEGORY REGISTRATION
FEES
Annual Business
turn over
PARCEL SPACE
PERMISIBLE
“A” Rs. 1,00,000 Rs. 2 Crores VP, SLR’s & AGC
“B” Rs 50,000 Rs. 50 Lakhs SLR’s AGC

2. “C” Rs 25,000 Rsa. 10 lakhs AGC
Registration Certificate shall be valid for 5 Years, Leaseholder can renew before its
expiry.
Duplicate Registration Certificate shall be issued on submission of affidavit of its loss,
and 10% of Registration fees (non-refundable)
Registration has to mandatorily renewed if it expires during currency of contract..
Submission of false information/ Violation contract provision, leads to cancellation of
registration and forfeiture of registration fee. All his leasing contracts will be cancelled
INVITATION OF TENDERS:
• Contracts for leasing out of parcel space in SLRs/Parcel vans by trains will be
awarded by inviting bids through tenders by divisions/Zonal railway.
• The applicant must be a registered leaseholder on the division where the tender
is floated
FIXATION OF RESERVE PRICE –SLR/AGC
TYPE RESERVE PRICE
AGC 1.25 Times freight as per NTR
SLR Equal to freight at par with NTR
• RP fixed by Comml Deptt
• Vetting of Reserve Price by Associate Finance is to be obtained.
• Train in which any SLR is leased through open Tender and is in operation –RP of
subsequent SLRs of same train = Highest of in operation leased SLR (or) NTR
(whichever is Higher)
• RP for AGC involving engine reversal, for each Engine Reversal-10% reduced
Duration of contract:
Offered Rate Duration

3. At prescribed reserve price or above the prescribed reserve price
Long Term Lease
3 Years
50% and above but less than 100% of the prescribed reserve price
Short Term Lease
1 Year
TEMPORARY LEASE/DAY-TO-DAY LEASE
Offered Rate Duration
50% and above but less than 100% of the prescribed reserve price
Temporary Lease
30 Days
At prescribed reserve price or above the prescribed reserve price
Day- to-Day Lease
10 Days at a
time
(1) In the tender notification, it should be mentioned that if no offer(s) are received at
the prescribed reserve price, then Railway may consider offer(s) below reserve price
for reduced period.
(2) The minimum benchmark for accepting the offer(s) shall be 50% of the prescribed
reserve price.
(3) In case leasing of SLR/AGC by trains notified under Rajdhani/Premium Parcel
service (Scale –R and Scale-P ), offers below 100% of reserve price will not be
accepted.
(4) Short term lease will be considered only when there is no response to long term.
(5) Temporary lease/Day-to-Day lease shall not be awarded by those train where
SLR or Parcel van are leased out through open tender for Long/Short term.
PAYMENT OF EMD:
• Parties applying for more than one compartment should submit separate
application for each compartment of train separately.
• EMD has to be paid for each unit separately.
Parcel Space to be leased out Earnest Money
Mode of deposit of Earnest
Money
1 Asst. Guard Space (AGC) Rs.20,000/- Banker Cheque
or
Bank Draft
2
One 4 Tonne compartment of
Brake vans (SLR)
Rs.1,00,000/-
3 Parcel Vans (VP) Rs.4 lakh

4. After finalization of contract, earnest money of unsuccessful bidders shall be refunded.
PROCESS OF LEASE – SOP
Tender Committee shall process and give their recommendations to the accepting authority.
Tender Committee will consist of 3 members, one from Commercial, one from
Accounts and the third member shall be nominated by accepting authority.
A standing Tender committee has to be notified based on above guidelines.
Value of Contract Level of Tender
Committee
Accepting Authority
Up to Rs. 5 crores Senior Scale Sr.DCM
Up to Rs.10 crores JAG ADRM
Up to Rs. 15 crores JAG DRM
> Rs. 15 crores SAG Committee CCM
The Highest bid will be determined based on Total Value of earnings offered by the
prospective leaseholder.
The tenderer shall be required to indicate in the tender form, number of loading days,
number of days of leave he wants to avail during the year.
The tenderer has to also mention the name of intermediate station where he intends to load
and unload in tender form.
AWARD OF LEASE
• Based on the recommendation of Tender Committee, lease contact approval is issued
by the Accepting Authority.
• Lease holder shall remit security deposit and enter into agreement with railways for
operating of lease within 15 days on receipt of award of lease letter.
• On written application additional 15 day can be granted by accepting authority .
• If fails to commence lease operation - EMD paid shall be foreited. leaseholder shall
be Debarred for 2 yrs from participation in all tenders floated in that Division/Zone
• Lease holder has to supply the copy of registration certificate, LOA and copy of
agreement to intermediate and destination station.

5. SECURITY DEPOSIT:
Lease holder shall remit Security Deposit before commencement of contract. EMD
paid can be converted into SD, as per the details given below:
Parcel
Space
Security Deposit Minimum
Amount
Mode of payment
AGC 10 days lumpsum
leased freight
Rs 20,000 Bank
Guarantee
(or)
F D R
SLR Rs 1 Lakh
VP 5(five) days lumpsum
leased freight
Rs 4 Lakh
PREPAYMENT OF FREIGHT:
• Prepayment of freight is compulsory. Payment of lumpsum leased freight should
be made one day in advance of the nominated day of loading.
• If the leaseholder fails to deposit one day in advance of the nominated day of
loading, 5% surcharge on lumpsum leased freight will be levied.
• Lease holder shall pay Development Surcharge and Service Tax as per extant
rules on the Lumpsum leased freight.
PAYMENT OF FREIGHT - OTHER CONDITIONS:
• Budgetary or any other increase in the tariff rate shall be made applicable to the
leased traffic during the currency of contractual period. The lumpsum leased
freight shall be increased/decreased accordingly on prorata basis.
• Revision of categorization of Train not applicable during currency of contract
• If the lease holder fails to load leased SLR/VP on any day without genuine
reason and without prior permission of the Rly Admn the lumpsum freight paid for
the day shall be forfeited.

6. • If the leaseholder after commencement of contract fails to operate for 10 days
continuously without giving any notice, his contract shall be cancelled and
security deposit is forfeited.
SALIENT FEATURES OF LEASING:
• Lease holder shall load only such commodities which are permissible to be
booked as parcel by railways.
• If prohibited articles(explosive, banned, offensive etc;) are found to have been
loaded in leased AGC/SLR/VP, a fine of Rs. 50,000/- shall be imposed on the
lease holder. His lease contract will be cancelled.
• Leaseholder to make his own arrangements for loading and unloading of parcels.
• Lease holder is responsible for complying Sales Tax/VAT provisions
• ID card for Lease holder and his three representative issued by Division. Valid for
one year, and can be renewed.
• Lease holder in turn issues ID card to his labourers, which shall be countersigned
by CPSR. These are also valid for One year.
• Maximum No. of labourers to be permitted shall be decided by Sr DCM.
• One day leave will be due after 30 lease operations. This is subject to his
requisition indicated in tender form. For availing leave lease holder has to give
advance intimation of 24 Hrs before the schedule departure of train to the CPSR
of originating station.
LOADING /UNLOADING AT ORIGINATING AND INTERMEDIATE STATIONS:
• Leaseholder shall complete loading /unloading operation of LC within the
available time at originating and destination stations, duly providing time for
sealing by railways.
• In case of leased Parcel Vans, three hours free time is allowed from the time at
which the vehicle is placed in position for loading or unloading, at originating and
destination stations
• Leaseholder shall be permitted to load/unload the LC at all intermediate stations
where stoppage of train is 5minutes or more.
• In leasing of LC by ordinary trains lease holder is permitted to load/unload
packages at all intermediate stations having schedule stoppages, however any
detention caused will be penalised.

7. • In case of parcel vans loading/Unloading at intermediate stations is permitted
where the scheduled stoppage of the train is 10 minutes or more.
STACKING/REMOVAL OF CONSIGNMENT ON/FROM PLATFORMS:
• At all train originating stations leaseholder is permitted to stack his consignment
2 Hrs before scheduled departure of train in case of leased SLR.
• Similarly at destination leaseholder shall remove his consignments within 2hrs of
actual arrival of train, in case of leased parcel van removal free time is 3 Hrs.
• Wharfage charges as applicable at Public tariff rate shall be collected from
leaseholder for non-removal of consignment from the station premises.
OTHER CONDITIONS:
• No RR will be issued only MR shall be issued for the lumpsum lease freight paid.
• Lease holder shall prepare detail manifest for consignment being transported by
him in four copies.
• The leaseholder shall be required to prepare detailed ‘Manifest’ for consignments
being transported for each combination of loading & unloading station indicating
station-wise details of number of consignments loaded and their weight .
• In case of excess number of packages found vis-à-vis shown in the Manifest a
penalty of Rs.5000/- shall be recovered per vehicle even when the weight is
within the permissible carrying capacity of that vehicle
• In case of less number of packages found vis-à-vis shown in the Manifest no
penalty shall be recovered, provided the total weight of the packages is within the
permissible carrying capacity of that vehicle.
SEALING & WEIGHMENT:
• The originating station shall weigh atleast 20% of the total leased traffic on daily
basis, in such a manner that the entire leased traffic from a originating station is
covered by rotation. Records of such weighment should be mentioned in
weighment register
• The originating station must ensure that after completion of loading, the leased
SLR/VP are sealed by railway staff. Similarly at intermediate stations where
loading/unloading are permitted must ensure sealing of SLR/VP before departure
of train.

8. • Efforts should be made to conduct reweighment in the presence of concerned
party/leaseholder. The report of results shall be countersigned by party and CPS.
SALIENT FEATURES OF ASST. GUARD CABIN LEASING:
• Lease holder will be allowed to load/ unload their packets etc. at all stopping
stations en-route irrespective of stoppage time of the train at intermediate
stations.
• In case of AGC Max Wt per Package should not exceed 25 Kgs.
• One representative of the lease holder will be permitted to travel in the Asstt .
Guard’s cabin of the train free of charge with an authority from the Sr.DCM/DCM
for handling packages at intermediate stations.
• Leaseholder or his representative shall not interfere with the BV equipments, any
damage caused will be penalized with a minimum fine of Rs. 5000/-
SALIENT FEATURES OF PARCEL VAN (VP) LEASING:
• VP’s shall be leased on Round Trip basis and shall be awarded on long term
contract only..
• Normally train owning railway initiates lease of VP, however NOC has to be
obtained from destination railway.
• If owning railway is unable to lease, then destination railway can lease after
obtaining NOC.
• Normally NOC are to be issued by concerned Zonal railway within 15 days.
• FIXATION OF RESERVE PRICE FOR VP’s
• Parcel Scale Category of both the directions of train is ascertained
• If in either of the direction the train is notified as Scale-‘R’ , reserve price is fixed
taking Scale ‘R’ for both directions
• Minimum chargeable scale for reserve price fixation is Scales ‘P’
• Reserve price is fixed at 1.5 times of single journey freight of Scale R or Scale P
depending on the category of train.
• Minimum distance for charge is 500 Kms in each direction.

9. • If one or more VPs already leased through open tender and are in operation.
Reserve Price for subsequent VPs by same train, shall be Equal to Amount of
highest leased freight among them (provided should have completed 1 year)
PENAL PROVISIONS ON LEASING:
• DETENTION PENALTY : Causing detention to AGC/SLR/VP beyond the
schedule stoppage of train, a fine of Rs. 5000/- is levied.
• OVERLOADING PENALTY (LC):
• (i) Normal lumpsum leased freight for weight in excess of permissible carrying
capacity of vehicle + (ii) punitive charges equivalent to six times the freight at
Scale – R for entire excess weight from origin to destination irrespective of the
point where such over loading was detected + (iii) a penalty of Rs. 10,000/- per
vehicle.
• In addition to the above penalty, Railway may terminate the contract and cancel
the registration of the leaseholder in case of 4th (fourth) default.
• OVERLOADING AGC:
• Tolerance of 5Kgs per package allowed. Beyond tolerance detected shall be
levied Six times of scale “R” for the weight exceeding beyond 25 Kgs.
• (1) In addition to above a penalty of Rs. 5,000/- shall be levied per unit of AGC
detected with overloading.
• (2) Penal charges shall be recovered from origin to destination irrespective of the
point where such overloading is detected.
• (3) Railway may terminate the contract and cancel the registration of the
leaseholder in case of 4th (fourth) default.
• OVERLOADING VP:
• Tolerance of 0.5 tones allowed with normal freight. Beyond tolerance detected
shall be levied with Six times of scale “R” for the weight detected beyond PCC.
• (1) In addition to above a penalty of Rs. 10,000/- shall be levied per vehicle
detected with overloading.
• (2) Penal charges shall be recovered from origin to destination irrespective of the
point where such overloading is detected.

10. • (3) Railway may terminate the contract and cancel the registration of the
leaseholder in case of 4th (fourth) default.
• MIS-Declaration: In case of mis-declaration, penalty shall be imposed as per
extant rules and provisions of Section 163 of Railway Act 1989.
GRIEVANCES REDRESAL MECHANISM:
• HELPLINE: In order to provide immediate help to a lease holder in an
emergency, each division will get a help line activated for solving their day-to-day
problems. Telephone No. of helpline will be that of Commercial Control.
• MDT: In order to provide single window and customer friendly service to lease
holders at the station, multi-disciplinary teams will be deputed in each shift at
major passenger terminals from where large number of trains originate /
terminate.
• Teams will comprise of representatives from following departments:
– Commercial department – Parcel staff – Team Leader.
– Mechanical department – TXR staff.
– Security department – RPF staff.
TERMINATION OF LEASE:
• Lease holder shall have the right to terminate the agreement after serving 60
days notice to railway administration.
• However, leaseholder shall Not be allowed to terminate the contract before one
year in case of any contract whether it is on short term or long term.
• In case he does so, his security deposit and registration fee shall be forfeited and
he shall be debarred from entering into any tender for one year.
ACCOUNTAL LEASE:
• Proper accountal and check on various aspect of leased traffic viz. earnings per
trip, type of stock, carrying capacity, details of Money Receipt, accountal of
leased earnings in balance sheet, number of leave/ non-loading days availed by
the leaseholder etc; is to be maintained in the prescribed Performa.
• All concerned must maintain the same and submit it every month to Sr. DCM/
CCM(FM) and Traffic Accounts Office.