Railway Budget: Prabhu may cut freight rates

The Railway Board might be looking at a reduction in freight rates, although it did not say this in as many words on Thursday, in the Railway Budget.

“Earlier, when we spoke of freight rationalisation, we usually talked about increasing the fares. But this time, we are talking about marginally decreasing the fares,” said Railway Board Chairman AK Mital.

Railway Minister Suresh Prabhu had spelt out plans to help the Railways regain market share in freight haulage. Asked how the Railways intends to meet a target of an additional 50 million tonnes of freight cargo next year, Mital said it will be chasing about 40 more types of commodities. He, however, added that economic growth will have an impact.

Mohammed Jamshed, Member – Traffic, said the commodities will include automobiles, bamboo, bauxite, charcoal, chemical, fodder, gypsum, manganese, jute, oil and molasses.

Sanjay Mukherjee, Financial Commissioner, said there will be different people to handle the accounts of large customers.

Meanwhile, asked how the passenger segment’s earnings growth will be met, Mital said the Railways is looking to introduce more premium trains in the superfast category. He indicated that these trains will have higher pricing than the rest.

Earlier in the conference, Mital said the unreserved long-distance trains were aimed at the common man, but did not share details of the fares. On whether there could be out-of-Budget fare hikes, Mital said the Railways always has the option of taking such a step. On the fate of a holding company for the Railways, and a likely disinvestment, Mukherjee said they will first have to talk with the Finance Ministry.