Lok Sabha Question No. 3736 (UNSTARRED), answered on 2019-12-11
Subject: Train Fares
Ministry: RAILWAYS
Asked by: Riti Pathak

## GOVERNMENT OF INDIA MINISTRY OF RAILWAYS

## LOK SABHA UNSTARRED QUESTION NO.3736 TO BE ANSWERED ON 11.12.2019

## TRAIN FARES

† 3736.  SHRIMATI RITI PATHAK:

Will the Minister of RAILWAYS be pleased to state:

- (a) whether  fluctuation  in  the  prices  of  petrol  and  petroleum products both in domestic and international market has affected the train fares and freight structure of Indian Railways;
- (b) if so, the details thereof;
- (c) whether the Government has taken any initiative  to  make  the structure of freight and  dynamic  pricing logical in Indian Railways in view of  fluctuations in the prices of diesel / petrol;
- (d) if  so,  the  details  thereof  during  the  last  three  years  and  the current year; and
- (e) the steps taken by the Government to ensure competitiveness among  freight  of  Railways  and  other  means  of  transportation including roads?

## ANSWER

## MINISTER OF RAILWAYS AND COMMERCE & INDUSTRY

## (SHRI PIYUSH GOYAL)

- (a) to (e) A Statement is laid on the Table of the House.

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STATEMENT  REFERRED  TO  IN REPLY TO PARTS (a) TO (e) OF UNSTARRED  QUESTION  NO.3736  BY  SHRIMATI  RITI  PATHAK  TO  BE ANSWERED IN LOK SABHA ON 11.12.2019 REGARDING TRAIN FARES (a)    Presently, adjustments in the fare and freight structure on the Indian Railways are not directly linked to fluctuations in the prices of petroleum and petroleum products. (b)     Does not arise. (c) & (d) Pricing is based on number of factors like cost of service, value of service, what the traffic will bear, competition from alternative modes of transport etc. Pricing of diesel / petrol constitute a part of input costs. Thus, pricing is at present not directly tagged to diesel /petrol prices by any pre-fixed formula. (e)      Steps  taken  to  progressively  upgrade  Railway's  competitive  edge over other modes of transport include inter-alia the implementation of a differential tariff regime for specifically addressing situations arising out of skewed demand during different periods of the year as well as across different regions of the country.  The slew of freight incentives schemes that are also in place for attracting traffic include following initiatives:-

- i. Liberalised  Automatic  Freight  Rebate  scheme  for  traffic  loaded  in empty  flow  direction,  Long  Term  Tariff  Contracts  (LTTC)  with  key freight customers, Station to Station rates (STS), discount on loading of bagged consignment in open and flat wagons, rationalisation of freight rate,  rationalisation  of  Merry-Go-Round  (MGR)  system,  reduction  of minimum  distance  for  charge  from  125  km  to  100  km,  distance

increased for mini rake from 400 km to 600 km and upto 1000 km for Intra Zonal traffic, proliferation of Roll-on Roll-off (RORO) services, denotification of large number of commodities for charging at FAK rates, withdrawal  of  congestion  charge  for  stone  traffic  transported  from Eastern  Railway  to  Bangladesh  via  Darsana/  Benapole,  withdrawal  of 15% Busy Season Charge from 01/10/2019, withdrawal of 5% supplementary charge from Mini Rake and Two Point Rake combination, Discount  of  25%  on  movement  of  empty  containers  and  empty  flat wagons, Round-trip haulage charge for container traffic (for 0-50 km) for ultra  short  lead.  Liberalization  of  Terminal  Access  Charges  (TAC)  for double  (loading  &  unloading)  operations;  i.e.  instead  of  1.5  times  the applicable rate, one time charge is now applicable.

- ii. Use  of  extensive  computerization  in  freight  operation  to  improve monitoring  and  to  improve  utilization  of  assets,  deployment  of  higher capacity  locomotives  and  higher  capacity  wagons,  improvement  in maintenance practices of wagons and locomotives resulting in increased availability of rolling stock for traffic, improvement in track and  signaling  to  carry  the  higher  volume  of  traffic,  training  staff  and officers to adopt the new technology and management practices.
- iii. Two Dedicated Freight Corridors (Western & Eastern Dedicated Freight Corridors)  have  been  taken  up  to  create  adequate  capacity,  which  is essential requirement to cater the traffic demand and improve quality of service.

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