Recover wagon maintenance fee from Adani Agri Logistics, Rlys told

The Ministry of Railways has asked Northern Railways to enter into a retrospective agreement and recover maintenance charges on wagons owned by Adani Agri Logistics (AALL). These bulk foodgrain handling, storage, and transportation wagons were owned in accordance with an agreement between AALL and Food Corporation of India (FCI) signed over a decade ago. The recovery of maintenance dues retrospectively is being done under the directives of the Delhi High Court (HC).

“FCI entered into an agreement with AALL, following an open tender for the scheme of bulk movement of foodgrain around 2006. The movement in special wagons began around October 2008,” a railway ministry official told Business Standard.

An internal report in 2014 found no maintenance charges were being taken by Northern Railways for these wagons. Subsequently, it was decided to charge AALL for the same. The bills raised by Northern Railways were contested in court by AALL.

“The present instructions from the Railway Board have been issued in compliance with Delhi HC’s orders for payment of maintenance charges for the wagons after entering into a suitable agreement,” added the official.

According to the railway ministry letter to Northern Railways, the maintenance of these wagons will be done by Indian Railways on payment under an agreement to be executed with AALL. 

Routine maintenance costs, including yard examination, regular and periodical overhauling, and repairs due to normal wear and tear of these wagons, will be charged at a fixed 5-per cent capital cost of the wagons per annum. Unscheduled repairs arising out of reasons other than accidents, including fau­lty manufacture, will be char­ged to AALL over and above the 5-per cent capital cost per annum.