Which of the following is are true about the lsquo Dual Freight Policy rsquo Under this policy the t...........

Economic Affairs Transport

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Which of the following is/are true about the ‘Dual Freight Policy’?

Under this policy, the tariff for transportation of iron ore to ports for the purpose of exports is more than the rate charged for transporting the same commodity for domestic use.
Due to the negative impact on the economy this policy has been discontinued

Select the correct answer using codes given below

1 only

2 only

Both are true

None is true

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Explanation:

In a bid to boost freight traffic volumes, the Indian Railways has abolished its dual freight policy for carrying iron ore, a long-pending demand from industry players.

According to a 2008 policy, the tariff for transportation of iron ore to ports for the purpose of exports is three times the rate charged for transporting the same commodity for domestic use in steel and cement industries.

A Comptroller and Auditor General (CAG) report tabled in Parliament last year had pointed out that the freight business suffered losses of around Rs 29,000 crore in 2008-13 due to the dual pricing system for transporting iron ore. It had found that iron ore was carried at lower domestic rates but was diverted for exports resulting in huge losses to the exchequer.