NEW DELHI: Barely days after seeking a Cabinet nod of Rs 3 lakh crore for the construction of dedicated freight corridors, the Indian Railways data has revealed that its earnings from freight transportation for 2016-17 dropped by around five per cent.The drop in earnings has been recorded after in 2015-16 the railways recorded an increase of 3.23 per cent from freight.
Officials say that the railways has been subsidising rates to make freight carrying attractive for its customers and hence the drop in earnings has been noticed. “We intend to bring in more customers by offering them good rates, sometimes subsidised. Hence, the earnings have been lowered,” an official said. However, officials claim measures have been taken to ensure that the earnings are enhanced.
“Measures like increase freight capacity, advance freight system, withdrawal of port congestion charges, rationalisation of rates of commodities among others have been taken up in a bid to increase the revenue generation from freight transportation,” the official said.