Indian Railways has been working tirelessly to improve the passenger amenities. In recent years, you might have witnessed many of these changes including cleanliness at stations and trains with modern features and amenities. However, a report has revealed in August that the public transporter spends Rs 111 for every Rs 100 it earns. However, the figure was Rs 114 for every Rs 100 in 2016.

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In order to continue the improvements and ensure additional revenue growth, Indian Railways has decided to increase freight rates and haulage charges.

"Indian Railways has rationalised its freight rates to ensure additional revenue generation across the network for improved passenger amenities. The rationalisation of freight rates will result in a 8.75% increase in freight rates for major commodities such as coal, iron and steel, iron ore, and raw materials for steel plants," said the Ministry of Railways in a statement.

It has also increased the haulage charges of containers by 5% and the freight rates of other small goods have been increased by 8.75%.

"However, the freight rates of food grains, flours, pulses, fertilisers, salt, and sugar have not been increased, keeping in mind farmers and the common man. Additionally, the freight rates of cement and petroleum (including diesel) have not been increased," it said.

Indian Railways will generate additional revenue of Rs 3,344 crore from the move.

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"The decision to rationalise freight rates will result in additional revenue generation for Indian Railways to the tune of Rs 3,344 Cr. The additional revenue will further help enhance various aspects of Railways including safety, service, punctuality, etc," said the ministry.