Railways mull tariff reforms

Number of tariff classes for freight may be brought down to 10

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Vishaka Zadoo New Delhi
Last Updated : Feb 06 2013 | 5:33 PM IST
The Railways plan to go in for freight rationalisation and may reduce the number of tariff classes to 10 rate schedules, instead of 27 at present.
 
"There would be around 8-10 schedules depending on the type of product being carried," a railway ministry official said.
 
He said the idea was to make the freight service more customer-friendly. A large number of tariff classifications created confusion for the customers, he added.
 
For instance, he said, different rates were being charged for aluminium rods and aluminium slabs. While rationalising, the attempt would be to bring similar products under one category.
 
The products would be divided into 8-10 classes like raw materials, foodgrains, finished products, etc. There would be an omnibus class, which would contain products not covered by the other classes.
 
The government has been steadily reducing the freight classes over the years. In 2002-03, the then Railway Minister, Nitish Kumar, reduced the number of classes from 59 to 33. In February, 2004-05, the number was brought down to 27.
 
The official said the move would be a part of the policy measures planned by the government to increase freight traffic by streamlining charges. A proposal for flexi-tariffs on certain routes has also been mooted to attract more customers.
 
The ministry is also trying to correct the imbalance in rates, where some products are subsidised while others are overcharged. One measure planned in this direction is the reduction in freight charges for petroleum.
 
The ministry is mulling over a proposal to slash freight rates for petro products by as much as 35 per cent. This would help the Railways regain the lost marketshare in petro products transportation.
 
The ministry would also introduce the Freight Operation Information System for monitoring movement and decision-making. The computerisation would make data about arrival and departure of rakes readily available, which would help identify bottlenecks, the official said.

Taxing tariffs
  • Railways to bring similar products under one category and create an omnibus class for products not covered under other categories
  • The move is aimed at ending confusion and making the freight service customer-friendly
  • Rail ministry is also trying to correct the imbalance in freight charges, where some products are subsidised while others are overcharged

 

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First Published: Dec 20 2004 | 12:00 AM IST

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