At a time when the government is trying to curb inflation, the railways has increased freight charges and made extra Rs 6,000 crore in the last 3-4 months, a senior official said.
The commerce ministry wants the finance ministry to deduct, from the general budgetary allocation, amount equivalent to "windfall" which the railways has earned over the past few months.
"Everybody is squeezing the same fellow (manufacturer). Freight charges have increased and then you put export duty on top of it," the official said.
Citing the example of iron ore, he said the railways has increased the charges on transporting the material to ports by Rs 1,025 per tonne between September 30, 2007 and May 22, 2008.
"This is a 21 per cent increase and as good as putting duty on exports," the official said.
While the Railway Budget for 2008-09 left passenger fares and freight charges unchanged, the railway minister faced criticism in the Parliament by opposition which alleged that the rates were being revised in the name of "rationalisation".
The extra budgetary resources for the railways Annual Plan for the current year are pegged at Rs 8,500 crore. The commerce ministry wants the finance ministry to penalise the railways for resorting to revision in freight charges. Besides sparing the industry of hike in freight charges in the Railway Budget, Prasad had announced 5 per cent cut in transportation cost of petrol and diesel.
But, the 45-month high inflation of 8.1 per cent is being driven both by the edible and non-edible items, particularly steel which depends on costly iron ore.
