Railways to hike freight rate by 5.7% from Apr 1

The transportation of goods including foodgrains, edible oil, cement, coal and iron ore will be costlier from April 1 as the freight rate is being revised by about 5.7 per cent to absorb the rising fuel cost by railways.

Railways have proposed to implement the fuel adjustment component-linked revision in freight in the Rail Budget.

"The freight rate has been hiked by about 5.7 per cent on all commodities and new rate will be applicable from April 1," said a senior Railway Ministry official adding "a notification to this effect is being issued today."

Railways aim to mop up Rs 4,200 cr from the freight hike.

The loading target for the next fiscal have been kept at 1047 million tonnes, 40 MT more than the last year.

The freight rate was last hiked by 20 per cent in March 2012.