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RAIL DIWALI GIFT

BSN Network / New Delhi
Date: 05/11/2018

Railways revise “flexi fare” downward

Railways increased freight rates by 8.75 per cent for carrying major commodities like coal, iron ore, steel and some smaller goods. It also announced a downward revision in “flexi fare” system for premium passenger trains, with Railway Minister Piyush Goyal calling the move a “Diwali gift to passengers”.
Rising diesel prices made Railways spend around Rs 2200 crore extra since April on fuel — an amount that was beginning to weigh on its operating finances, sources said. Railway Board had started discussing the fact that diesel prices had made the road sector jack up its rates. “So there was clearly some scope to increase our freight rates without losing our price advantage vis-a-vis the road sector,” a senior Railway ministry official said.
Foodgrains, fertilisers, petroleum products and cement have been left out of the hike.
A statement from the ministry said the hike was “to improve passenger amenities”. Railways expects to earn Rs 3,344 crore in a year from this.
The announcement came on a day when after months of internal deliberations, Railways proposed to revise the flexi fare system from many premium trains owing to low occupancy.

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