Railways hikes freight rates by up to 8.75%; rationalises flexi fare scheme
01 Nov 2018
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Indian Railways has announced an 8.75 per cent increase in freight rates for major commodities to ensure additional revenue generation across the network for improved passenger amenities.
The rationalisation of freight rates will result in a 8.75 per cent increase in freight rates for major commodities such as coal, iron and steel, iron ore, and raw materials for steel plants, a railway ministry release stated.
The Railways raised haulage charges of containers by 5 per cent and the freight rates of other small goods by 8.75 per cent.
However, the freight rates of food grains, flours, pulses, fertilisers, salt, and sugar have not been increased, keeping in mind farmers and the common man. Additionally, the freight rates of cement and petroleum (including diesel) have not been increased.
The decision to rationalise freight rates will result in additional revenue generation for Indian Railways to the tune of Rs3,344 crore. The additional revenue will further help enhance various aspects of Railways including safety, service, punctuality, etc.
The Railways also reviewed the flexi fare scheme as per the recommendation of the review committee based on the Comptroller and Auditor General’s report, and representations from passengers.
Accordingly, 15 trains have been taken completely out of the flexi fare scheme;
Another 32 trains have been partially taken out of the flexi fare scheme for the lean period (February, March and August)
Graded discount of up to 20 per cent on last fare will be given (class wise) in case of class occupancy being less than 60 per cent. The highest slab also stands reduced from 1.5 times to 1.4 times
Theflexi fare scheme was launched with effect from 9 September 2016. The scheme generated high revenue. However, initially, there was a drop of passengers which picked up later on. Further, to rationalise the fares an 8 member committee was formed to review the scheme and make it more passenger friendly. The review of the scheme has been done based on the recommendation of the committee, Comptroller and Auditor General’s report, and representations from passengers.
