The Hindu Business Line : Railways plans to raise freight charges

With the Railways aiming to load 785 million tonnes of goods in the current fiscal, it could earn over Rs 1,400 crore through the levy of these new charges

New Delhi June 11 Moving goods and parcels by trains is set to become dearer, with the Railways deciding to levy a two per cent surcharge as development charge effective from July 1.

Additionally, the Railways has also decided to levy a terminal handling charge of Rs 10 per tonne per terminal from July 1.

TERMINAL CHARGE

The terminal charges will be levied for bulk and loose traffic on terminals and sidings owned by the Railways only - so the terminals owned by customers would not attract any surcharge.

Both load and unloading of goods at terminals would attract Rs 10 surcharge each.

"These charges will be levied on loading and unloading terminals independently and separately on the basis of chargeable weight at the time of issue of railway receipt," said the Railways in an order.

For example, if a customer books 3,600 tonnes of coal from a private siding to a goods shed, the firm would have to pay Rs 36,000 as terminal charge.

Now, if the same traffic is to be moved between two goods sheds owned by the Railways, the customer would have to pay Rs 36,000 as terminal charge for each terminal - totalling Rs 72,000.

However, if the traffic moves between two private sidings, no terminal charge will be levied.

With the Railways aiming to load 785 million tonnes of goods in 2007-08, it could earn over Rs 1,400 crore through these charges, said Ministry officials.

While levying the two per cent surcharge, the Railways has spared those firms with whom it has already entered into long-term contracts - allowing them to use parcel and luggage vans on lease till the contract period ends.

While the Railways has specified that the proceeds of development surcharge on parcel and luggage would go towards funding the dedicated freight corridor project, it has not done so for the two per cent surcharge levied on goods traffic.

The Railways earned Rs 1,726 crore revenue by moving parcels and luggage in 2006-07, according to revised estimates. It proposes to earn Rs 2,200 crore in 2007-08. By moving goods, the Railways aims to earn Rs 46,943 crore in 2007-08.