Railways to hike freight rates from Dec. 27

Indian Railways will increase the rates charged for transporting iron ore, steel and other products by about 4% from Dec. 27 as it seeks to counter the spike in higher wages and rising fuel costs. According to Anil Kumar Saxena, a spokesman for the Union Railway Ministry, employee wages, fuel costs and input prices have risen. Still, about 50% of the increase has been absorbed by the Railways, he said. Freight rates for coal, coke, cement, caustic potash and some petroleum products will also be increased by a similar amount, according to a Dec. 20 circular posted on the Ministry of Railways’ website. Charges for foodgrains and fertilizers will remain unchanged, while rates for salt and sugar will appreciate marginally, it said. The freight rates for transporting cement, coal and coke for a distance of between 501 kilometers and 510 kilometers will increase to Rs 489.90 from Rs 471, according to the Railways. The rates for alloys, metals, iron and steel will go up to Rs 587.90 from Rs 565.20, the Railway ministry said.