Wagons. 5.1 The Parties hereby acknowledge and agree that the AFTO shall procure by way of purchase and lease any and all Wagons including Brake Vans required by the AFTO for the purposes of operating, in accordance with the terms of this Agreement, the AFTO’s Trains and that Railway Administration shall not, in any way, be responsible or obligated to provide to the AFTO any Wagons including Brake Vans and any other rolling stock (other than supply of the locomotive in accordance with the terms of this Agreement). 5.2 The AFTO shall carry on its train such wagons, which conform to Wagon capacity and the moving dimensions as may be notified / published by MOR for the purpose of Automobile Freight Train Operator (AFTO) Scheme. 5.3 Procurement of wagons for induction under Automobile Freight Train Operator (AFTO) Scheme will be allowed only with prior administrative approval of MOR. Wagons procured with out the prior approval of MOR will not be permitted to be inducted for operation. 5.4 The AFTO shall procure/operate wagons of RDSO approved IRS designs manufactured by a Indian Wagon Supplier holding valid G105 Certificate issued by RDSO or by an overseas supplier considered suitable by RDSO provided that all wagons procured by the Licensee must comply with the technical specifications and design prescribed by RDSO. In case a AFTO procures new wagons, using the design and drawings of RDSO design loan charges shall be payable by the operator to RDSO at rates as applicable at the time of manufacture of such wagon for use of such design & drawings of RDSO. 5.5 The Parties further agree that any Wagons or its parts, which are safety related, procured by the AFTO shall be subjected to inspection by RDSO or its authorised inspecting agency for which the AFTO shall pay due charges for such inspection. In case sourcing of wagons or such of its parts as are essential for safe operations is from RDSO approved suppliers, the inspection can also be carried out by any one of the inspection agencies nominated by the RDSO from time to time. In addition to inspection charges, design loan charges shall be levied and paid to Indian Railway or its authorized agencies, in case Wagon design belongs to Indian Railway or its authorized agencies. For the avoidance of doubt, it is agreed that these charges shall be levied on all AFTOs on a non- discriminatory basis. 5.6 The AFTO may procure new designs of wagon which have not been introduced earlier on Indian Railways network. In all such cases, the AFTO shall obtain RDSO’s mandatory approval for new wagon design in terms of new wagon design policy of ▇▇▇▇ ▇▇. ▇▇-▇▇-▇▇▇-▇▇▇▇ (latest version) prior to introduction of such wagons in service. The design ownership rights shall be regulated as per the new wagon design approval policy from time to time. As regards the aforementioned inspection by RDSO or its authorized inspecting agency, it is agreed that the AFTO shall be required to provide a notice to the Railway Administration seeking execution of the above aforementioned inspection. The Railway Administration shall, within the period falling between 45 days to 60 days after receipt of such notice from the AFTO and upon full payment of relevant charges (in advance), commence and complete such inspection. 5.7 The AFTO has to procure full rake composition as notified by IR with 4% additional wagons as maintenance spare and a brake van per rake. 5.8 AFTO shall be required to incorporate following warranty clause in their purchase contract with the wagon manufacturer (Vendor): “The vendor of AFTO hereby covenants that it is a condition of the contract that all wagons furnished to the AFTO under this contract shall be of the highest grade, free of all defects and faults and of the best material, quality, manufacture and workmanship throughout and consistent with the established and generally accepted standards for materials of the type ordered and in full conformity with the contract specification, drawing or sample if any and shall, if operable, operate properly: The Vendor of AFTO also guarantees that the said wagons would continue to conform to the description and quality as aforesaid, for a period of 30 months after their delivery or 24 months from the date of placement in service whichever shall be sooner, and this warranty shall survive notwithstanding the fact that the wagons may have been inspected, accepted and payment therefore made by the AFTO. If during the aforesaid period, the said wagons be discovered not to conform to the description and quality aforesaid or have deteriorated, otherwise than by fair wear and tear, the decision of the AFTO in that behalf being final and conclusive then the AFTO will be entitled to reject, the wagons or such portions thereof as may be discovered not to conform to the said description and quality. On such rejection, the wagons will be at the vendor’s risk. If the vendor so desires, the rejected goods may be taken over by him or his agents for disposal in such manner as he may deem fit within a period of 3 months from the date of such rejection. At the expiry of the period, no claim whatsoever shall lie against the AFTO in respect of the said wagons, which may be disposed of by the AFTO in such manner as he thinks fit. Without prejudice to the generality of the foregoing, all the provisions in the AFTO’s standard condition of contract relating to the rejection of wagons, failure and termination shall apply. The vendor shall, if required, replace the wagons or such portion thereof as have been rejected by the AFTO, free of cost, at the ultimate destination, or at the option of the AFTO, the vendor shall pay the AFTO, the value thereof at the contract price and such other expenditure and damage as may arise by reason of the breach of the conditions herein before specified. Nothing herein contained shall prejudice any other right of the AFTO in that behalf under this contract or otherwise.” A copy of the contract warranty clause shall be submitted by the AFTO to the Maintainer to ensure logging of warranty calls in the field. However, the AFTO shall coordinate compliance of warranty calls booked by the Maintainer with the builder and cost of all uncomplied warranty repairs shall be the liability of the AFTO. 5.9 AFTO can also take new wagons on lease from a Wagon Leasing Company subject to necessary approvals by MOR. AFTO can also purchase or take on lease wagons procured under AFTO Scheme from another registered operator, in that particular category, subject to necessary approval by MOR. However, in such cases AFTO will be entitled for a freight rebate to be charged the remaining period of the rebate that has already been availed. 5.10 AFTO shall inform the MOR regarding details of placement of procurement order. Similarly the date of actual induction shall be advised by the applicant to MOR under advice to concerned zonal railway(s) indicating the loading and unloading terminals. 5.11 Each wagon procured by the AFTO shall be allotted a unique vehicle number and owner code allotted by the Authority. The licensee shall not alter/modify such unique identification number on his own. In case of change in ownership for any reason, the AFTO shall approach MOR for change of ownership code. 5.12 In the event of the AFTO acquiring wagons on lease from a wagon leasing company or purchases used wagons from another operator , such wagons shall be subjected to safety and fitness inspection by the Maintainer in accordance with rules/regulations / norms applicable to such type of wagons as issued by the MOR from time to time. Upon request by the Licensee, Maintainer shall carryout necessary repairs, at AFTO’s cost, to render such wagons fit prior to introduction in service, provided that, if, prior to being acquired by the AFTO, such wagons remained under continuous and regular operation and maintenance by Indian Railways, initial inspection may be waived at the discretion of “the Maintainer” . The time taken for inspection and repairs of such wagons by “the Maintainer” shall in any case not exceed 30 days from the date of application made by the AFTO for the same. At any time during the currency of this agreement, the Maintainer, if so warranted on age cum condition basis, may condemn any wagon owned by the AFTO after advising the AFTO with detailed reasons for such a decision. For this purpose, the Codal life of wagons shall be as per norm fixed by the MOR which shall be non-discriminatory. 5.13 On receipt of documents about the induction of rake, a notification shall be issued by the zonal railway including all details of rebate, the date of commencement of agreement period, the name of AFTO, wagon numbers, category, handling terminals etc.
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Wagons. 5.1 The Parties hereby acknowledge and agree that the AFTO Concessionaire shall procure by way of purchase and lease any and all Wagons including Brake Vans required by the AFTO Concessionaire for the purposes of operating, in accordance with the terms of this Agreement, the AFTOConcessionaire’s Trains and that Railway Administration shall not, in any way, be responsible or obligated to provide to the AFTO Concessionaire any Wagons including Brake Vans and any other rolling stock (other than supply of the locomotive in accordance with the terms of this Agreement).
5.2 The AFTO Concessionaire shall carry on its train such wagons, which conform to Wagon capacity and the moving dimensions as may be notified / published by MOR for the purpose of Automobile Special Freight Train Operator (AFTOSFTO) Scheme.
5.3 Procurement of wagons for induction under Automobile Special Freight Train Operator (AFTOSFTO) Scheme will be allowed only with prior administrative approval of MOR. Wagons procured with out the prior approval of MOR MoR will not be permitted to be inducted for operation.
5.4 The AFTO SFTO shall procure/operate wagons of RDSO approved IRS designs manufactured by a Indian Wagon Supplier holding valid G105 Certificate issued by RDSO or by an overseas supplier considered suitable by RDSO provided that all wagons procured by the Licensee must comply with the technical specifications and design prescribed by RDSO. In case a AFTO SFTO procures new wagons, using the design and drawings of RDSO design loan charges shall be payable by the operator to RDSO at rates as applicable at the time of manufacture of such wagon for use of such design & drawings of RDSO.
5.5 The Parties further agree that any Wagons or its parts, which are safety related, procured by the AFTO Concessionaire shall be subjected to inspection by RDSO or its authorised inspecting agency for which the AFTO Concessionaire shall pay due charges for such inspection. In case sourcing of wagons or such of its parts as are essential for safe operations is from RDSO approved suppliers, the inspection can also be carried out by any one of the inspection agencies nominated by the RDSO from time to time. In addition to inspection charges, design loan charges shall be levied and paid to Indian Railway or its authorized agencies, in case Wagon design belongs to Indian Railway or its authorized agencies. For the avoidance of doubt, it is agreed that these charges shall be levied on all AFTOs Concessionaires on a non- non-discriminatory basis.
5.6 . The AFTO Concessionaire may procure new designs of wagon which have not been introduced earlier on Indian Railways network. In all such cases, the AFTO Concessionaire shall obtain RDSO’s mandatory approval for new wagon Concessionaire shall obtain RDSO’s mandatory approval for new wagon design in terms of new wagon design policy of ▇▇▇▇ ▇▇. ▇▇-▇▇-▇▇▇-▇▇▇▇ (latest version) prior to introduction of such wagons in service. The design ownership rights shall be regulated as per the new wagon design approval policy from time to time. As regards the aforementioned inspection by RDSO or its authorized inspecting agency, it is agreed that the AFTO Concessionaire shall be required to provide a notice to the Railway Administration seeking execution of the above aforementioned inspection. The Railway Administration shall, within the period falling between 45 days to 60 days after receipt of such notice from the AFTO Concessionaire and upon full payment of relevant charges (in advance), commence and complete such inspection.
5.7 5.6 Wagon inducted for transportation of commodities under SFTO scheme should give at least the same net tonnage per train as carried in a train of full rake length as notified by IR. The AFTO Concessionaire has to procure full rake composition as notified by IR with 4% additional wagons as maintenance spare and a brake van per rake.
5.8 AFTO shall 5.7 Concessionaire will be required to incorporate following warranty clause in their the purchase contract with the wagon manufacturer (Vendor): “The vendor of AFTO hereby covenants that it is a condition of the contract that all wagons furnished to the AFTO Concessionaire (SFTO) under this contract shall be of the highest grade, free of all defects and faults and of the best material, quality, manufacture and workmanship throughout and consistent with the established and generally accepted standards for materials of the type ordered and in full conformity with the contract specification, drawing or sample if any and shall, if operable, operate properly: The Vendor of AFTO also guarantees that the said wagons would continue to conform to the description and quality as aforesaid, for a period of 30 months after their delivery or 24 months from the date of placement in service whichever shall be sooner, and this warranty shall survive notwithstanding the fact that the wagons may have been inspected, accepted and payment therefore made by the AFTOConcessionaire. If during the aforesaid period, the said wagons be discovered not to conform to the description and quality aforesaid or have deteriorated, otherwise than by fair wear and tear, the decision of the AFTO Concessionaire in that behalf being final and conclusive then the AFTO Concessionaire will be entitled to reject, the wagons or such portions thereof as may be discovered not to conform to the said description and quality. On such rejection, the wagons will be at the vendor’s risk. If the vendor so desires, the rejected goods may be taken over by him or his agents for disposal in such manner as he may deem fit within a period of 3 months from the date of such rejection. At the expiry of the period, no claim whatsoever shall lie against the AFTO Concessionaire in respect of the said wagons, which may be disposed of by the AFTO Concessionaire in such manner as he thinks fit. Without prejudice to the generality of the foregoing, all the provisions in the AFTOConcessionaire’s standard condition of contract relating to the rejection of wagons, failure and termination shall apply. The vendor shall, if required, replace the wagons or such portion thereof as have been rejected by the AFTOConcessionaire, free of cost, at the ultimate destination, or at the option of the AFTOConcessionaire, the vendor shall pay the AFTOConcessionaire, the value thereof at the contract price and such other expenditure and damage as may arise by reason of the breach of the conditions herein before specified. Nothing herein contained shall prejudice any other right of the AFTO Concessionaire in that behalf under this contract or otherwise.” A copy of the contract warranty clause shall be submitted by the AFTO SFTO to the Maintainer to ensure logging of warranty calls in the field. However, the AFTO SFTO shall coordinate compliance of warranty calls booked by the Maintainer with the builder and cost of all uncomplied uncomlied warranty repairs shall be the liability of the AFTOConcessionaire.
5.9 AFTO 5.8 Concessionaire can also take new wagons on lease from a Wagon Leasing Company wagon leasing company subject to necessary approvals by MOR. AFTO Concessionaire can also purchase or take on lease wagons procured under AFTO SFTO Scheme from another registered operator, in that particular category, subject to necessary approval by MOR. However, in such cases AFTO Concessionaire will be entitled for a freight rebate to be charged the remaining for a period of 20 years less the period of rebate that has already been availedavailed or till recovery of the cost of investment based on the total freight rebate available on the rake whichever is earlier.
5.10 AFTO 5.9 Concessionaire shall inform the MOR regarding details of placement of procurement order. Similarly the date of actual induction shall be advised by the applicant to MOR under advice to concerned zonal railway(s) indicating the loading and unloading terminals.
5.11 5.10 Each wagon procured by the AFTO Concessionaire shall be allotted a unique vehicle number and owner code allotted by the Authority. The licensee shall not alter/modify such unique identification number on his own. In case of change in ownership for any reason, the AFTO Concessionaire shall approach MOR for change of ownership code.
5.12 5.11 In the event of the AFTO Concessionaire acquiring wagons on lease from a wagon leasing company or purchases used wagons from another operator , such wagons shall be subjected to safety and fitness inspection by the Maintainer in accordance with rules/regulations / norms applicable to such type of wagons as issued by the MOR from time to time. Upon request by the Licensee, Maintainer shall carryout necessary repairs, at AFTOConcessionaire’s cost, to render such wagons fit prior to introduction in service, provided that, if, prior to being acquired by the AFTOConcessionaire, such wagons remained under continuous and regular operation and maintenance by Indian Railways, initial inspection may be waived at the discretion of “the Maintainer” . The time taken for inspection and repairs of such wagons by “the Maintainer” shall in any case not exceed 30 days from the date of application made by the AFTO for the same. At any time during the currency of this agreement, the Maintainer, if so warranted on age cum condition basis, may condemn any wagon owned by the AFTO Concessionaire after advising the AFTO Concessionaire with detailed reasons for such a decision. For this purpose, the Codal life of wagons shall be as per norm fixed by the MOR which shall be non-discriminatory.
5.13 5.12 On receipt of documents about the induction of rake, a notification shall be issued by the zonal railway MOR including all details of rebate, the date of commencement of agreement concession period, the name of AFTOSFTO, wagon numbersnumber, category, handling terminals etc.
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Sources: Concession Agreement