Railways announces more freight concessions for industries

New Delhi, May 10 (UNI) Giving an aggressive push to its 'volume game', the Railways today announced a slew of concessions, including suspension of 10 per cent surcharge on loading of bulk items like cement and fertilisers till further orders and 'freezing' of the existing 30 per cent empty flow discount till 2010.

Addressing reporters after an interactive meeting between the Railways and industries, Railway Minister Lalu Prasad said these steps have been taken in a conscious move to woo back businesses that had gone to the road transport sector.

He said the Railways had set a target of 1,150 million tonnes of freight transportation by 2011-12 from 726 million tonnes in the last fiscal.

The minister hinted at further rationalisation of freight tariffs by the end of this month after taking into consideration various suggestions by industry leaders.

''In view of persistent demand from our customers, the Railways has decided to postpone till further orders the imposition of 10 per cent surcharge on loading of bulk items like cement and fertilisers in mini-rakes and two-point rakes,'' he said, adding that such a step was hailed as ''a welcome and positive move'' by representatives of the cement industry.

Further, empty flow discount of 30 per cent on loading in BoxN or BSN wagons, which was announced for the fiscal 2005-06, would continue till March 2010, he said, and appealed to the cement, steel and other industries to sign long-term agreements of 5 to 30 years with the Railways.

He assured that even during the peak season, those signing long-term agreements would be provided wagons on an assured basis.

''The Railway Board would take a decision within two months on applications seeking long-term agreements,'' he announced.

The minister said that like loading terminals and sidings, a scheme for modernisation of unloading terminals would also be implemented under the Public Private Partnership (PPP) mode.

With regard to the delay in sanctioning of applications for freight discount schemes, he said it would be decided in a maximum of three months by the Railway Board.

The minister exuded confidence that Railways's share in transportation of steel and cement would reach 200 million tonnes each by the end of the Eleventh Five-Year Plan (2011-12).

UNI