Indian Railways to hike freight rate by 5.7% from Apr 1

Business Standard reported that the transportation of goods including food grains, edible oil, cement, coal and iron ore will be costlier from April 1 as the freight rate is being revised by about 5.7% 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.

A senior Railway Ministry official said that “The freight rate has been hiked by about 5.7% on all commodities and new rate will be applicable from April 1st.”

Railways aim to mop up INR 4,200 crore from the freight hike.

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

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