The Indian Railways on Wednesday rationalised its freight rates to ensure additional revenue generation across the network for improved passenger amenities. This is expected to result in an 8.75 percent increase in freight rates for major commodities such as coal, iron and steel, iron ore, and raw materials for steel plants, read a statement.
Furthermore, the haulage charges of containers have been increased by 5 percent and the freight rates of other small goods have been increased by 8.75 percent.
"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," the statement added.
This decision will result in additional revenue generation for Indian Railways to the tune of Rs 3,344 crore. The additional revenue will further help enhance various aspects of Railways including safety, service, punctuality, etc. 
Meanwhile, in a relief for passengers, the railways has scrapped flexi-fare in 15 premium trains in which the occupancy is less than 50% throughout the year, while the scheme will be discontinued in 32 other trains during lean periods when occupancy dips to 50-75%.
The step comes in the wake of the Comptroller and Auditor General (CAG) report in July that had flagged the dipping occupancy level since the scheme was introduced in September 2016 and had recommended rationalisation of flexi-fare. Sources in the railways also said that while the national transporter will incur losses of around Rs 103 crore due the changes brought into the scheme, it hopes to recover not just the losses but also generate additional revenue by increasing occupancy through the reduced fares. The sources said that a 15-% jump in occupancy of the 15 trains in which flexi-fare is being scrapped will compensate for an estimated loss of around Rs 22.41 crore because of the changes.