Railway Budget 2013: UPA express slows at poll signal
More than a third of railways’ gross traffic earnings comes from the goods segment right now, thanks to inadequate pass-though of costs over several years to passengers, especially those who travel in the lower-class coaches.
For the record, Bansal announced automatic revision in freight to factor in fuel costs every six months, starting with an average 5.8% rise in freight of major commodities from April 1. This could rake in R4,200 crore, more than offsetting the rise in fuel cost — R3,300 crore annually — due to the recent deregulation of bulk diesel prices. Fuels account for 26% of the railway’s operational expenses and Bansal said that the electricity and diesel price revisions in 2012-13 would inflate the transporter’s fuel bill for 2013-14 by R51,00 crore. Another R881 crore is expected from raising passenger reservation and