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Goods tariff simplified
On the face of it, Lalu Prasad Yadav's second Rail Budget looks populist, writes Vinod Sharma.
On the face of it, Lalu Prasad Yadav's second Rail Budget looks populist. But his rationalised goods tariff can be termed innovative, given the client-friendly nature of the new regime which does away with complex rate structures that were a sure recipe for corruption and inefficiency.
The old system divided goods into 4,000 categories subject to different tariff and minimum (per wagon) weight conditions. Metal traders were asked if they were transporting copper, zinc, aluminium or bronze? Fishermen faced queries as ludicrous as whether the catch was being transported fresh or in dried form?
Summarised on a single page, the reworked tariff schedule places all metals under 'metal and metal products' while fish comes under 'eatables and foodstuff'. Explained a railways official: "I'm a transporter, I'm not concerned with what you are carrying. I will charge you for the 58 tonne capacity of the wagon".
On discovering that tariff — under the simplified weight-rate system — worked out on the higher side for lighter goods like fodder, paper and fruits, Lalu created three new categories. His argument: The exercise is aimed at rationalisation, not raising revenue.
In fact, to augment revenue, he targeted metal and grain traders out to make a quick buck. Without touching the Railways' committed clientele or compromising on its social obligations —met through free transportation of foodgrain for relief — he chose to charge 20 and 15 per cent more for ferrying non-relief foodgrain or iron-ore booked by fly-by-night operators.
There is no proposal for a freight hike for raw material consumed by the core sector — coal in the case of thermal plants, iron ore for steel works, limestone for cement manufacturers. "But there is no such consideration for iron ore exporters who continue to use our services as even our revised rates work out cheaper than road transportation", the official said.
Even the tatkal version of freight — called Premium Registration Scheme — is meant to woo profit-seeking clients. With the existing 30-month waiting period for railway rakes, the scheme is bound to find takers.
