Diesel prices may rise but Rly to drop freight charges

The Railway Ministry today said that if there is an increase in diesel prices, it will not affect freight and passenger fares. Instead, it p...

The Railway Ministry today said that if there is an increase in diesel prices, it will not affect freight and passenger fares. Instead, it promised to lower the freight rate with immediate effect, as and when the diesel prices do go up.

Sources close to Railway Minister Laloo Prasad Yadav said it was not a populist move by the ministry, but a well-planned marketing strategy. ‘‘We will still manage to earn a profit where revenue from freight is concerned,’’ said an official. The loading target, as per the budget for 2005-06, was 635 million tonnes, but sources said they would end up carrying about 700 million tonnes.

The official said they will offset the additional burden of the diesel price hike by incremental loading and offering customers lucrative packages. The Railways will offer a rebate of 10 to 24 per cent on certain packages of freight loading. Of the 600 freight trains run by the Railways every day, more than 550 return empty. However, if somebody also books a rake for a return journey, the Railways will offer the 10 to 24 per cent discount, depending upon the goods.

Meanwhile, the railways have transferred three senior officials for ‘‘gross negligence,’’ causing the head-on collision between Jammu Tawi Ahmedabad Express and a local train last December in Punjab, which claimed 38 lives.

Adani group chief Gautam Adani. The regulator made it clear that none of the charges in the show-cause notice could be proved. It also confirmed there was no violation of the Sebi Act concerning fraudulent or unfair trade practices.

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