The Telegraph

The railways have increased 8.75 per cent the freight rates on major commodities such as coal, steel, iron ore and raw materials for steel plants.

“The decision to rationalise freight rates will result in additional revenue generation for Indian Railways to the tune of Rs 3,344 crore. The additional revenue will further help enhance various aspects of railways including safety, service, punctuality,” the statement said.

The freight rates for foodgrains, flours, pulses, fertilisers, salt and sugar have not been increased, keeping in mind farmers and the common man.

The rates for cement and petroleum products, including diesel, have also not been increased. Haulage charges for containers have been increased 5 per cent and freight rates of other small goods have been increased 8.75 per cent.

Freight accounts for almost 65 per cent of total revenues of the railways and helps it cross-subsidise the passenger segment. In the last fiscal, the railways had earned Rs 1.17 lakh crore through freight loading. For this year, it has set a target of earning Rs 1.21 lakh crore from freight.

Earnings from the passenger segment are pegged at Rs 52,000 crore. The total receipts of railways, including sundry and non-fare revenue, are estimated to be Rs 2 lakh crore in the current fiscal.