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New rail freight scheme to hike rates 20-25%-news07032012

Wednesday, March 07, 2012

The railways have effected major changes in freight slabs of coal, cement, fertilizer and food grain, which would result in a 20-25% rate increase over the same distance.

The new notification drastically reduces the distance slabs for all commodities from around 174 to 37. In a concession, rates for iron ore exports, shifted from the most expensive class 200 to class 160, have been reduced up to 30%.

The railways had increased the busy season charge and development surcharge on freight from October 15, 2011. Busy season charges for coal and coke were revised from 5 to 10% and in the case of all other commodities, from seven to 10%. The rate of development surcharge was also revised from 2 to 5%.
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