New Delhi, June 6: Faced with acute financial crunch, railways has hiked the parcel and luggage tariff rates by about 20%-25% on all goods and baggage to generate resources.
After hike in freight tariff rates just before the rail budget two months ago, the move is seen as railway management's effort to generate funds to wriggle the state-run transporter out of fiscal mess without annoying its political masters.
These backroom measures to raise funds has come after railway minister Mukul Roy, under pressure from her political master and West Bengal chief minister Mamata Banerjee, had roll backed the proposal for passenger fare hike which has remained untouched since 2002-03.
Railways has increased the freight rates by 20%-25% in March just a week ahead of the rail budget.
The transporter aims to generate around Rs 350-400 crore as additional revenue in the current fiscal through the rationalization of tariff that has come after six years. Railways has earned Rs 1,600 crore from parcel and luggage traffic during 2011-12.
Railway officials defended the move, arguing that the parcel and luggage rates were last revised in 2006. It was argued that parcel and luggage rates were very low while there was need to bring some parity between the freight and parcel rates.
The revised rates are applicable to all goods, excluding newspapers which continue to be booked at concessional rates. However, registered magazines will not enjoy the concessions any more.
"The new rates are effective from June 1," said a circular issued by railway board.
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