Railways is taking several steps for the convenience of businessmen. For this, the Railways has decided to defer the surcharge of 15 per cent incurred in the peak season. Apart from this, auto companies will be given more facilities.
New Delhi: Railways have announced several incentives as part of the effort to increase freight rates. Under this, the surcharge of 15 per cent on the transportation during the busy season has been avoided. At the same time, the number of racks for the transportation of the vehicle sector has increased. The railways is trying to increase freight traffic amidst talk of slowdown in the economy.
Railways said on Thursday that it has deferred a surcharge of 15 per cent on freight in the busy season. This surcharge is levied between October 1 and June 30.
Railway Board member (traffic) PS Mishra told reporters here, “In view of the current economic scenario, the Railways have taken several steps to increase the freight. In particular, our effort is to reduce the cost of rail freight. He said that an additional discount of five percent would be given on the transportation through mini racks or small parcel size racks.
The crisis-ridden automobile sector is exploring cost-cutting measures. Railways has decided to provide more racks to the vehicles sector for transport of vehicles. The railway has been providing eight racks for the vehicle sector. Now their number has been increased to 26. Railways plans to provide 50 racks to the vehicle sector by the end of this year.
Mishra said that this step has been taken at the request of the vehicle sector. In the last financial year 2018-19, Railways had earned Rs 1.25 lakh crore from the freight of 122.3 million tonnes. Mishra said that this year we are expecting to surpass this figure both in volume and revenue. However, the revenue growth is expected to be a numerical.