The railway ministry has formulated various freight incentive schemes with the objective of increasing freight traffic as well as generating additional revenue for Indian Railways with encouraging response from the customers. So far a total number of 326 proposals have been received by the Railways under these schemes out of which 244 proposals have been approved.

These are expected to generate additional earnings of Rs305.29 crore during the current financial year.

Under the ''incentive scheme for traditional empty flow direction'', a total number of 48 proposals have been received by the ministry, of which 31 proposals have already been approved, which will yield additional earnings of Rs38.58 crore during the current financial year.

Under this scheme the freight discount up to 30 per cent has been permitted on traffic loaded in the notified traditional empty flow directions during both busy and lean seasons to generate additional business volume in the movement streams traditionally carrying predominantly empty wagons. The discount has been permitted even in less than block rake traffic also.

Under the ''long term special incentive scheme'', a total number of 31 proposals have been approved out of total 78 proposals received so far. This will give additional earnings of Rs50.60 crore during the current financial year. Under this scheme, the zonal railways have been delegated the power to grant concession up to 20 per cent to the customers offering sizeable traffic.

Indian Railways will also generate additional earnings of Rs177.35 crore during the current year from the ''incentive scheme for incremental traffic''. Out of a total number of 87 proposals, 72 proposals have already been approved under this scheme. The customer is eligible for discount up to 15 per cent for incremental earning in lean season under this scheme.

A total number of 40 proposals have been received and approved under the Incentive ''scheme for freight forwarders''. To promote rail, road and warehousing integration and expansion of commodity basket for railways, composite freight rates have been offered to freight forwarders for loading in covered and BOXN wagons. This will give additional earnings of Rs10.82 crore during the current financial year.

Under the ''incentive scheme for two leg'', out of 73 proposals, 70 have already been approved and will generate additional earnings of Rs27.94 crore during the current financial year. Under this scheme, freight concession of 15 per cent in busy season and 20 per cent in lean season is granted to customer offering return traffic in covered wagon in ''block rakes''. For aggregated cargo, composite rates are being offered under this scheme.

The ministry has instructed all zonal railways to promote these schemes to convert road traffic to rail.