Lok Sabha Question No. 1758 (UNSTARRED), answered on 2019-02-13
Subject: Fluctuations in the Prices of Diesel/Petrol
Ministry: RAILWAYS
Asked by: JUGAL KISHORE SHARMA

## GOVERNMENT OF INDIA MINISTRY OF RAILWAYS

## LOK SABHA UNSTARRED QUESTION NO.1758 TO BE ANSWERED ON 13.02.2019

## FLUCTUATIONS IN THE PRICES OF DIESEL/PETROL

## † 1758.  SHRI JUGAL KISHORE:

Will the Minister of RAILWAYS be pleased to state:

- (a) whether fluctuations in the prices of petrol and petroleum products  in  both  national  and  International  markets  have  any effect on fares and freight structure of the Railways;
- (b) if so, the details thereof;
- (c) whether  any  effort  has  been  made  to  make  railway freight structure  including  multidimensional  price  determination  policy reasonable in the Railways in view of fluctuations in the prices of diesel and 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 completion of freight rates of railways with other means of transport including roads?

## ANSWER

## MINISTER OF STATE IN THE MINISTRY OF RAILWAYS

(SHRI RAJEN GOHAIN)

- (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.  1758  BY  SHRI  JUGAL  KISHORE  TO  BE ANSWERED IN LOK SABHA ON 13.02.2019 REGARDING FLUCTUATIONS IN THE PRICES OF DIESEL/PETROL

(a) Presently, adjustments in the fare and freight structure on the Indian of

Railways  are not directly linked to fluctuations in the prices petroleum and petroleum products.

(b) Does not arise.

(c) &(d) The evaluation of various alternatives relating to rationalization of the fare and freight structures is an ongoing process. Such exercises are yet exploratory in nature and do not constitute a systemic proposal for revision of fares in line with fluctuations in fuel prices.

(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), withdrawal of Dual freight policy for Iron Ore, discount on loading of bagged consignment  in open  and flat wagons,  rationalisation of coal  tariff,

withdrawal  of  port  congestion  charge,  rationalisation  of  Merry-GoRound  (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, proliferation of Roll-on Roll-off (RORO) services, denotification of 44 additional commodities for charging at FAK rates, withdrawal of congestion charge for stone traffic transported from Eastern Railway to Bangladesh via Darsana/ Benapole.

- ii. The  methodology  for  levying  Terminal  Access  Charge  (TAC)  for handling  container  train  in  railway  terminal  has  been  liberalised from 1.5 times to one time in case of double operation (i.e. unloading followed by loading), reduces non-freight cost to customer.
- iii. Indian Railway has taken an innovative business decision to transport empty  containers and empty  flat wagon  for private container rakes at a discount of 25%. The move is likely to give a thrust  to  movement  of  empty  container  by  rail  towards  ports  to return as loaded, thus profiting Indian Railway with higher container share.
3. iv.
4. 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.

- v. 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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