Narendra Modi asks PM to withdraw freight hike order

Mar 14, 2012 |

IANS

New Delhi

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Objecting to the hike in freight rates ahead of the railway budget on Wednesday, Gujarat Chief Minister Narendra Modi on last week wrote to Prime Minister Manmohan Singh and asked him to withdraw the notification.

Modi said the over 20 per cent increase in freight from March 6 announced by the railways will raise the prices of goods ranging from coal and fertilizers to essential commodities including foodgrain.

"Such a hike violates the supremacy of parliament. The timing of the notification, coinciding with the results of the assembly polls in five states, is surprising," Modi said in a strongly-worded letter to prime minister.

"My immediate concern is its impact to cripple the power sector, especially in states like Gujarat, which are dependent upon coal linkages from distant places," said Modi.

The burden due to increase in coal prices and freight rates by Coal India and the railways from 2006 onwards has almost cost Gujarat power units an additional Rs1,900 crore and the impact of the fresh decision will be another Rs300 crore, he said.

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