Traditionally, the losses on the passenger side have been compensated by freight rates, Minister of State for Railways Manoj Sinha said in a written reply.
The tariff policy has been to keep passenger fares low, especially in the lower classes, so that even the poorest segment of the population can avail the services, Sinha said.
On the other hand, the freight rates have been increased periodically. Increase in freight rate on regular basis, compromised the competitiveness of Railways with the other modes of transport, particularly road sector, he said.