The Railways has revised its tariffs for bulk commodities such as coal, iron ore and steel, which could raise costs for power producers and steel and its user industries. The national transporter also removed surge pricing on certain categories for premium trains, making passenger travel cheaper on those trains.
The increase in freight rate is 8.75%, which will net the railways at least Rs 3,300 crore as additional freight revenue in the current financial year. There’s no revision in freight rate for cement, petroleum products, foodgrain and urea.
A top railway official said that the higher tariff won’t increase the cost of thermal power production as the country’s largest power producer — NTPC — would be provided transportation of coal at earlier rates till FY20. Read More
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