Lalu Prasad Yadav, Union Railways Minister, said that in the wake of recent diesel price hike, the Indian Railways will not pass Railways’ additional financial burden on its users, both Railway passengers and freight customers.
The minister pointed out that Indian Railways consume 2.27 billion liters diesel per annum and an increase in the price of diesel by Rs three per liter would cost Railways Rs 681 crore annually and Rs 560 crore for the remaining ten months of the current financial year.
He said that Railways have decided to absorb the diesel price hike by improving its productivity, efficiency and volumes.
All Zonal Railways have been directed to grant upto 50 per cent discount, as against the prevailing 30 per cent, for loading of essential commodities like cement, foodgrains, fertilizers in the empty flow direction.
Further reduction in freight rates is also being examined keeping in view the competitive position of the Railways in the transport market so as to attract more traffic and increase earnings, the Minister added.