While calling for doing away with cross subsidisation in the Railways' tariff structure by making freight rates reflective of operational cost, it has also suggested that freight rates should be reduced during off season.

In a 11-point agenda, the industry chamber has noted that lack of operational flexibility, especially in pricing, high costs, a huge pension liability and poor investment decisions have all affected the competitiveness of the Railways. This has led to its losing market share vis-a-vis other modes of transport.

It has also called upon the government to corporatise Railways production units and later convert them into joint ventures with international suppliers to ensure competitiveness and the induction of the state-of-the- art technology.

According to CII, there is a need to redefine the role of Railways as a provider of efficient transport service. "The Indian Railways should be allowed to function on commercial lines," CII said in a press statement.

Freight rates on the Railways are among the highest in the world due heavy subsidisation in transport of essential commodities below the cost level, passenger and other coaching services and uneconomical branch lines. Freight rates have been increased in every budget which has hurt the competitiveness of the Indian economy, it said.

Among other steps, which the chamber has suggested for increasing the share of freight traffic by rail, are redesigning freight wagons and reducing speed differential between goods and passenger trains.

The industry also does not find the own your wagon scheme lucrative enough because of the discriminatory excise duty policy followed by the railways.As far as sidings are concerned, the chamber feels that the capital cost should be shared by the private sector and the Railways. At present, it is borne by the private sector with the Railways being the only customer.

The agenda has also asked for extending credit terms for freight charges on par with the road transport so as to increase its share of freight traffic.The chamber has called for providing a single window system for the settlement of all freight claims at the zonal level.

The Railways should right-size the staff strength and increase customer satisfaction by making the Railways commercially viable.In view of the increasing incidence of accidents in the recent past, there is an imminent need to improve safety measures by strengthening the accident investigation process and introduce a system of accountability and penalties for non-performance.

For improving facilities, it suggested stepping up electrification of railway tracks so as to reduce costs and providing greater port connectivity so as to encourage private investment and promote foreign trade.