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For Highlights of Indian Budget 2006-07 .... Click here

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Proposals relating to Freight Rates and Passenger Fares

No across the board increase in freight rates.

Rationalization of goods tariff to continue further.

Number of commodity Groups to be reduced from 80 to 28.

Highest class lowered to 220, freight rates of diesel and petrol less by 8%.

Over the next three years, the highest class to be lowered below 200 and rates for the highest classification to be made less than double that of the lowest classification (except rates of some light commodities).

Existing classes 90 W1, 90 W2 and 90 W3 for charging of lighter commodities to be replaced with new classes, namely, LR1, LR2, LR3, LR4 and LR5, equivalent to 90%, 80%, 70%, 60% and 50% of Class 100.

Schemes Announced

Dynamic Pricing Policy for freight introduced during the current year to be also extended to passenger for peak and non-peak seasons, premium and non-premium services, and for busy and non-busy routes.

Non-peak season incremental freight discount scheme launched.

Discounts upto 30% during non peak season and 20% in the peak season with certain conditions on incremental freight in the empty flow direction.

Loyality Discount Scheme to encourage the transportation of cement and iron & steel by rail.

Long-term freight discount scheme to attract new customers and new freight traffic.

Mini Rake and 2-point rake scheme to be made available both in peak and non-peak season.

New Freight Forwarder Scheme for freight of over over 700 kms.

Passenger services

No increase in passenger fares

Passenger tariff structure rationalized so that the fares of AC First and AC Second Class will be 11.5 times and 6.5 times the Second Class fare, respectively. Reduction in AC-I fare by 18% and AC-II fare by 10%.

Fully air-conditioned Garib Rath to be run on a pilot project basis initially with four pairs of services, fares about 25% lower than present AC-III tier fares.

Renewal period of Monthly Season Tickets increased from 3 days to 10 days and the superfast charges applicable on MSTs and QSTs reduced to one-fourth of the current levels.

Tariff fixation mechanism for military traffic to be rationalised and simplified.

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