March 15, 2002

    Railways are taking steps to improve the financial condition both by controlling expenditure and increasing revenues. Measures have been taken to control expenditure by improving staff productivity, asset utilisation, inventory management and fuel consumption. Concurrently, earnings are expected to improve with rationalisation of freight tariff and passenger fare proposed in the Railway Budget 2002-03, coupled with aggressive marketing and improved services. Efforts are also being made to curb leakage of revenue and pilferages. No subsidy was being given for transportation of any commodity. However, some of the commodities are carried below cost of operation. As per Railway Budget 2002-03, the freight structure of all commodities is proposed to be rationalized. However some essential commodities of common use such as Edible Salt, Fruits, Vegetable, Gur, Jaggery, Shakkar, certain items of Edible Oils, Foodgrains, Pulses, Organic Manures, Urea, Fodder and Dry Grass are proposed to be carried at lowest Class-90 of freight tariff.

    This information was given by the Minister of State for Railways , Shri O.Rajagopal in a written reply to a question by Shri D.O.Yadav in the Rajya Sabha today.