The freight re-classification of the "washed coal" from collieries was raised by one step in the last railway budget effective from April 1999.Since then, the hike was being criticised by the users, specially the big power houses, which had been pressing for its withdrawal. The issue was taken up by the ministry of coal and the public sector National Thermal Power Corporation (NTPC).

The latest demand for the withdrawal of the hike was made at the meeting of the trade and industry chiefs with Mamata Banerjee where the minister requested the private and public sector companies to help the railways in mobilising additional resources. The minister said the reduction in the special freight hikewould help the railways to pick up more coal traffic and thus earn more.

Official sources said the withdrawal of the special hike might lead to a loss of about rs 50 crore per year to the railways. But the minister said this would be compensated through increased freight traffic. Last week's meeting was held as part of continued major initiatives on involving private sector in generation of additional resources for the railways.

At the meeting Mamata Banerjee had detailed deliberation with a cross-section of leading representatives of trade, industry and public sector undertakings on wide ranging issues affecting the railways as well as industry.

The minister announced that the task force, constituted recently on probable private participation in railway network, would be expanded by including representatives from public sector undertakings also to have a more comprehensive view.

An official press release said the meeting was aimed at exploring possibilities of greater private participation invarious spheres of railway working and generation of additional resources for Indian railways.

The representatives showed keen interest in many possible projects in terms of mutual benefits and, simultaneously, developing business for the railways.The meeting was attended by more than 50 representatives from PSUs like Sail, MMTC, FCI, IFFCO, NTPC, Coal India, Bhel as well as leading corporate groups such as Tisco, Telco, Tata Tea, Hindustan Lever, ACC and ITC.

The representatives of industry raised the issues of cross subsidisation of passenger traffic by freight on railway, reduction in freight rates, greater facilities at freight terminals, need of operating innovations, transit time and losses. They also projected the high growth rate expected in freight traffic by rail in next few years.

The main areas of private participation in the railways, which were highlighted in the deliberations, included freight terminals, commercial publicity route of manning unmanned level crossings, commercialadvertisements on goods wagons, own your wagon scheme, built own lease and transfer (Bolt) scheme for construction of new projects.

Commercial exploitation of surplus railway land or air space and luxury trains on tourist circuits, were also discussed, the release said.