New Delhi, Feb 26 (UNI) In a move aimed at easing inflation, Railway Minister Lalu Prasad today announced a freight rate cut of five per cent on diesel, petrol and ammonia and six per cent on iron ore and limestone and an additional 30 per cent discount on the freight rates for wheat, fertilisers and cement.
While there is no across the board increase in freight rates in the Railway Budget 2007-08 presented in the Lok Sabha, the Minister announced an exclusive package for cement traffic.
There would be a 20 per cent cut in freight rates during lean season and 15 per cent during peak season under a two-leg freight discount scheme for covered wagons in up and down directions for distances above 700 km.
General Managers of Zonal Railways would be delegated powers to offer this discount on traffic with a lead of less than 700 km also under certain conditions.
A commodity-based freight policy would be formulated to better address the needs of customers for major commodities. This would be introduced on an experimental basis from April 1 through an exclusive package for cement.
An additional empty flow discount of 30 per cent would be given on bagged consignment of wheat, fertilisers and cement loaded in open wagons. At present, a 20 per cent discount is given to wheat, 30 per cent to fertilisers and 15 per cent to cement.
However, after giving both these discounts, the minimum charges payable would not be lower than freight payable at Class LR-3.
Thus the discount would go up to about 40 per cent for incremental loading of cement, wheat and fertilisers in bags, in empty flow direction.
''I am confident that by giving a such a heavy discount we will be able to attract FCI and various fertilisers and cement companies to load in open wagons returning empty. The calculation of incremental loading will be done on the basis of type of wagon,'' Mr Lalu Prasad said.
On the demand of mineral-based industries like steel and cement, freight rates for transportation of all minerals including iron ore and limestone would be charged at Class 160 in place of 170. This would reduce the freight rates for these commodities by about six per cent.
UNI
While there is no across the board increase in freight rates in the Railway Budget 2007-08 presented in the Lok Sabha, the Minister announced an exclusive package for cement traffic.
There would be a 20 per cent cut in freight rates during lean season and 15 per cent during peak season under a two-leg freight discount scheme for covered wagons in up and down directions for distances above 700 km.
General Managers of Zonal Railways would be delegated powers to offer this discount on traffic with a lead of less than 700 km also under certain conditions.
A commodity-based freight policy would be formulated to better address the needs of customers for major commodities. This would be introduced on an experimental basis from April 1 through an exclusive package for cement.
An additional empty flow discount of 30 per cent would be given on bagged consignment of wheat, fertilisers and cement loaded in open wagons. At present, a 20 per cent discount is given to wheat, 30 per cent to fertilisers and 15 per cent to cement.
However, after giving both these discounts, the minimum charges payable would not be lower than freight payable at Class LR-3.
Thus the discount would go up to about 40 per cent for incremental loading of cement, wheat and fertilisers in bags, in empty flow direction.
''I am confident that by giving a such a heavy discount we will be able to attract FCI and various fertilisers and cement companies to load in open wagons returning empty. The calculation of incremental loading will be done on the basis of type of wagon,'' Mr Lalu Prasad said.
On the demand of mineral-based industries like steel and cement, freight rates for transportation of all minerals including iron ore and limestone would be charged at Class 160 in place of 170. This would reduce the freight rates for these commodities by about six per cent.
UNI
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