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Journalism of Courage
That funding the Rs 28,181 crore Dedicated Freight Corridor (DFC) is weighing heavy on the minds of Railway minister Lalu Prasad Yadav’s mandarins in Rail Bhawan is evident than ever before.
Having decided to convert the “safety surcharge” imposed on passenger fares into a development charge, the receipts from which would be used to fund the DFC, the Railways ministry has now decided to levy a 2 per cent development charge on parcel and luggage services with effect from July 1. Simply put, parcel and luggage services on Indian Railways are set to get costlier.
Railways earned around Rs 1,700 crore during 2006-07 from “Other Coaching” which mainly comprises of revenue from parcel and luggage services. The ministry plans to increase this revenue to Rs 2,200 crore during 2007-08. Considering that a 2 per cent development charge would only earn Railways roughly Rs 200 crore over five years (the time it will take to construct the DFC), the levy is being viewed more as a measure in desperation.
However, the levy of this development charge would only be made on leasing contracts executed after June 30. Existing leased Brake Vans (SLRs), Assistant Guard Cabins, Parcel Vans and Parcel trains would continue to run as per agreements entered into by the Railways and would not attract the development charges for the duration of their respective current agreements.
