Indian Railways, which implemented a 15.0 percent “busy season” surcharge on Oct. 1 on all bulk commodities, is again revising its freight tariff.
The state-owned enterprise has announced an across-the-board freight rate hike of 1.7 percent, starting Oct. 10, citing “fuel adjustment component” tariff revision.
“In the railway budget for fiscal year 2013-14, the proposal to implement fuel adjustment component-linked tariff revision, biannually in sync with movement in fuel costs in either direction, was introduced,” an official statement said. It also noted that the anticipated incremental earnings would be around 700 crore rupees (approximately US$112 million) in the remaining six months of this fiscal year.
Indian Railways’ commodity-wise freight earnings from April to August, the first five months of fiscal year 2013-14, totaled 36,465.59 crore rupees (about US$5.8 billion), up 7.8 percent year-over-year.