Railway's new surcharge irks coal consumers

Saying the 10 percent congestion surcharge on base fare imposed by the railways was detrimental to the industry, a coal association has requested Railway Minister Suresh Prabhu to revoke it.

Railways implemented the Congestion Surcharge on Goods Traffic originating from ports effective Nov 24 - on all cargo originating from ports.

"We have requested the (central) government to revoke this unjustified and unfair surcharge to provide at least some relief to the sectors consuming imported coal," Coal Consumers Association of India (CCAI) secretary general Subhasri Chaudhuri said in a statement.

The CCAI has argued that the congestion was the result of non-supply of sufficient wagons by the railways and hence, with the railway authorities responsible for the traffic, coal importers and consumers cannot be held to ransom.

"Even if there is no congestion at any particular port and rake movements are smooth then also the congestion surcharge is levied...which is beyond logic and reason," she added.