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Rail freight on grains, coal, cement to increase from April 1

Aiming to mop up an additional Rs 4,000 crore in goods earning, the Railways will increase its freight rates for several commodities including grains, pulses, urea, coal and cement from April 1 as proposed in the Railway Budget 2015-16.

While sparing passengers in his Rail Budget, Railway Minister Suresh Prabhu had proposed an average hike of 3.2 per cent in freight rates which is expected to have a direct impact on consumers of essential commodities and steel and aluminium industries.

Freight rates for carrying grains, pulses and urea would be increased by 10 per cent from the next fiscal, while coal rates would be raised by 6.3 per cent. Cement freight rate has been proposed to be increased by 2.7 per cent, while a hike by 3.1 per cent is expected on scrap and pig iron rates.

Railways has set an ambitious target of carrying 1,186 million tons (MT) of goods in the 2015-16 fiscal as against 1,105 MT in the current fiscal.

Prabhu had also proposed to raise freight rates for iron ore and steel by 0.8 per cent in the fiscal 2015-16 which begins in April. The freight rates for bitumen and coal tar are to be hiked by 3.5 per cent.

Freight earnings are estimated to be Rs 1,21,423 crore in the next fiscal as against its estimated freight earnings in 2014-15 of Rs 106,927 crore.

Besides freight rates, platform ticket is going to cost Rs 10 as against the current rate of Rs 5 from Wednesday.

The advance reservation period is also going to be increased from the existing 60 days to 120 days from April 1.

source: http://economictimes.indiatimes.com