Economic Survey 2025-26 recommends elimination of power cross-subsidies for railways, manufacturing within 5 years
High railway freight rates, driven by cross-subsidies, are distorting competition and increasing commodity prices, according to the Economic Survey 2025-26. The survey recommends eliminating these subsidies within five years to rationalize rates, improve revenue, and encourage a shift to rail transport. Reforms aim to promote cost-reflective tariffs and strengthen power distribution companies.
High railway freight rates, driven by cross-subsidies, are distorting competition and increasing commodity prices, according to the Economic Survey 2025-26. The survey recommends eliminating these subsidies within five years to rationalize rates, improve revenue, and encourage a shift to rail transport. Reforms aim to promote cost-reflective tariffs and strengthen power distribution companies.
