In a bid to continue the improvements in passenger amenities, including cleanliness at stations, and equipping trains with modern features to ensure additional revenue growth, the Indian Railways has decided to increase freight rates and haulage fares, reports Zee Business.
The Railway Ministry said in a statement that its has rationalised its freight rates for revenue generation across the network for improving passenger amenities. A report had, in August, revealed that the railways spend Rs 111 for every Rs 100 it earns, which was Rs 114 for every Rs 100 in 2016.
"The rationalisation of freight rates would result in an 8.75 per cent increase in freight rates for major commodities such as iron, coal and steel, iron ore, and raw materials for steel plants," said the Ministry in a statement.
There has been an increase of 5 per cent in haulage charges of containers and 8.75 per cent in freight rates of other small goods.
"However, the freight rates of foodgrains, flours, pulses, fertilizers, 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 hiked," the statement said.
Indian Railways is likely to generate additional revenue of Rs 3,344 crore from the move.
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