Lok Sabha Question No. 2511 (UNSTARRED), answered on 2018-12-26
Subject: Freight Earnings
Ministry: RAILWAYS
Asked by: JAYAKUMAR JAYAVARDHAN, SUPRIYA SADANAND SULE, HEENA VIJAYKUMAR GAVIT, RAJEEV SHANKARRAO SATAV, P.R. SUNDARAM, DHANANJAY BHIMRAO MAHADIK, VIJAYSINH MOHITE PATIL

## GOVERNMENT OF INDIA MINISTRY OF RAILWAYS

## LOK SABHA UNSTARRED QUESTION NO.2511 TO BE ANSWERED ON 26.12.2018

## FREIGHT EARNINGS

2511.   DR. J. JAYAVARDHAN:

SHRIMATI SUPRIYA SULE:

DR. HEENA VIJAYKUMAR GAVIT:

SHRI SATAV RAJEEV:

SHRI P.R. SUNDARAM:

SHRI DHANANJAY MAHADIK:

SHRI MOHITE PATIL VIJAYSINH SHANKARRAO:

Will the Minister of RAILWAYS be pleased to state:

- (a) whether it is true that the freight earnings of  the railways for 2016-17 decreased by 4.46% when compared to 2015-16;
- (b) if  so,  the  zone-wise  details  of  the  freight  earnings  thereof  and  the reasons therefor;
- (c) the  details  of  norms  for  fixing  freight  charges  for  transportation  of goods;
- (d) whether the Government has conducted any assessment regarding the reasons for the freight earning loss and if so, the details thereof; and
- (e) the Zone-wise and State-wise details of the steps taken/ being taken by the  Government  to  enhance  freight  earnings  of  railways,  year-wise since 2014?

## 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.2511 BY DR. J. JAYAVARDHAN, SHRIMATI SUPRIYA SULE, DR. HEENA  VIJAYKUMAR  GAVIT,  SHRI  SATAV RAJEEV,  SHRI  P.R.  SUNDARAM,  SHRI  DHANANJAY  MAHADIK  AND SHRI MOHITE PATIL VIJAYSINH SHANKARRAO  TO BE ANSWERED IN LOK SABHA ON 26.12.2018 REGARDING FREIGHT EARNINGS

- (a): Yes, Madam.
- (b): Zone-wise  details  of  Freight  Earnings  for  the  year  2015-16  and 2016-17 are appended.
- (c)  to  (e):  Rating  of  Indian  Railways  is  based  on  certain  cardinal principles which includes; cost of services, value of service, competition  from  other  mode  of  transportation,  what  the  traffic  can bear. Cost of service determines the minimum rates i.e. floor rate and what the traffic  can  bear  determines  the  maximum  rates  i.e.  ceiling rate.

Due to stiff competition from alternative modes of transport, it was felt that railway freight had out priced itself in certain sectors.  To make the  rail  transportation  attractive  to  its  customers,  various  initiatives have been taken which include tariff rationalisation, classification of through containerisation. Some of major steps, which have been taken in last new commodities and expansion of freight basket four year to generate additional revenue are as under:-

- i.
- Long Term Tariff Contract with key freight customers.
- ii. Introduction  of  new  delivery  model  of  Double  Stack  Dwarf Container.
- iii. FAK  rate  benefit  extended  to  notified  commodities  loaded upto 50 TEUs per rake which was earlier 30TEUs per rake.
- iv. 25% discount  granted for movement of empty container and empty flat wagon in container traffic.
- v.
- Introduction of Advance Freight scheme.

vi. Rationlisation of Station to Station Rates.

vii. Increase  in  Permissible  Carrying  Capacity  (PCC)  of  BFNSM 22.9 wagon.

viii. Introduction of Customer friendly rationalisation of weighment policy.

ix. Liberalised Automatic Freight Rebate Scheme in Empty Flow Directions.

x. Withdrawal of Port Congestion Charge.

xi. Proliferation of Roll-on-Roll off Service on Indian Railways.

xii. Withdrawal  of  levy  of  congestion  charge  for  stone  traffic transported from Eastern Railway to Bangladesh via Darsana/Benapole.

xiii. Withdrawal  of  Inflation  in  distance  for  charge  @  50%  on goods traffic in Bibinagar-Nadikudi section of SCR.

xiv. Rationalisation of Coal Tariff.

xv. More  flexibility in Mini rake loading by increasing the distance from 400Km to 600Km.

xvi. Withdrawal of Dual Freight Policy of Iron Ore traffic.

xvii. Reduction  in  minimum  distance  for  charge  from  125  km  to 100 km.

xviii. Expansion of the freight basket - Additional 44 commodities have been de-notified from the notified list and brought under FAK rates.

xix. Dispensation  from  mandatory  (100%)  weighment  in  case  of loading of 'Standard Bags of uniform size' when transported in container.

xx. Discount for loading of bagged consignment in open and flat wagons.

xxi. Rationalisation of Merry-Go-Round (MGR) scheme.

- xxii. Permitting all covered wagons for booking of traffic to twopoint/multi-point combinations, mini rake.

Recently,  freight  rate  has  been  further  rationalized  with  effect  from 01.11.2018, having following features:

- i. Increase in freight rate of Coal, RMSP (Raw material for steel plants ) , Iron & Steel, Iron ore , Other goods @ 8.75 %.
- ii. Increase  in  haulage  charge  of  Container  trains  @  5  %  w.e.f 01.12.2018.
- iii. No  increase  in  freight  of  Foodgrain,  Fertilizers,  POL,  Sugar, Salt, Edible oils and Cement as these are essential commodities or already at high rate.

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APPENDIX  REFERRED  TO  IN  REPLY  TO  PART  (b)  OF  UNSTARRED QUESTION  NO.  2511  BY  DR.  J.  JAYAVARDHAN,  SHRIMATI  SUPRIYA SULE,  DR.  HEENA  VIJAYKUMAR  GAVIT,  SHRI  SATAV  RAJEEV,  SHRI P.R.  SUNDARAM,  SHRI  DHANANJAY  MAHADIK  AND  SHRI  MOHITE PATIL VIJAYSINH SHANKARRAO  TO BE ANSWERED IN LOK SABHA ON 26.12.2018 REGARDING FREIGHT EARNINGS

## (b):   Zone-wise Freight Earnings for the year 2015-16 and 2016-17 are as under:-

## ( ₹ in crore)

| Zone               |   2015-16 |   2016-17 |
|--------------------|-----------|-----------|
| Central            |   7354.87 |   6695.42 |
| Eastern            |   3649.15 |   4049.99 |
| East Central       |   8558.99 |   8302.24 |
| East Coast         |  12290.9  |  13263.9  |
| Northern           |   7191.59 |   6697.96 |
| North Central      |   9321.97 |   8490.48 |
| North Eastern      |   1321.13 |   1409.23 |
| Northeast Frontier |   1930.89 |   1918.66 |
| North Western      |   4772.78 |   4465.17 |
| Southern           |   2816.17 |   2615.32 |
| South Central      |  10145.4  |   9366.99 |
| South Eastern      |  10558.3  |  10900    |
| South East Central |  10932.3  |  10671.8  |
| South Western      |   3000.64 |   2792.27 |
| Western            |   7597.29 |   6100.69 |
| West Central       |   7765.22 |   6598.48 |
| Total              | 109208    | 104339    |

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