core sector communique

Rationalization of Railways’ Fare and Freight Structure

Railways operate in an economic environment that is dynamic in nature. Conducting in-house exercises vis-à-vis rationalization of the fare and freight structure in response to evolving requirements is, thus, a continuous, on-going process. However, the implementation of resultant revisions in passenger fares and freight tariffs need not necessarily constitute a part of Budget proposals. Some of the initiatives implemented in 2012 include; Rationalisation of freight rates with effect from March 6, 2012; Increase in passenger fares for First class, AC 2-Tier and First AC/Executive Class by, respectively, 10, 15 and 30 paisa per kilometre with effect from April 1, 2012. In addition, various other optimization measures, such as enhancement of axle loads for enabling carriage of higher pay load per freight car, increasing the carrying capacity of wagons etc. have been implemented in the recent past. Railways have also taken a number of steps to attract additional traffic particularly in the traditional empty flow directions and during lean seasons through a slew of freight incentive schemes. Efforts continue to be made for raising resources internally from other than traditional sources also. This information was given by the Minister of State for Railways, Shri Bharatsinh Solanki in a written reply in Rajya Sabha today.