New Delhi: The Railways have decided to increase the freight rates for coal, iron ore and some other items effective from Saturday (Nov 27, 2004) to mop up Rs 400 crore for the current year in a bid to partially offset the additional burden on account of hike in the prices of diesel and steel.

"Freight rates for coal, iron ore, limestone, dolomite, gypsum, bauxite, manganese ore, cement and clinker have been increased from November 27," a mid-term revision of rail freight classification said today (Nov 25, 2004).

The freight rates for coal, iron ore, manganese ore and clinker would be higher by 7.7 per cent, while those for cement would be higher by 3.7 per cent.

These adjustments in freight rates were estimated to yield additional revenue of the order of Rs 400 crore for the remaining period of 2004-05 to offset partially the additional burden of the fuel bill and steel prices, it said.

"There has been no across-the-board increase in freight rates by the Indian Railways for the past three years. Railways have so far been absorbing fully the increase in the fuel bill and other working expenses," an official release said.