Railway Minister Suresh Prabhu said Railways will now depend largely on long-term borrowings rather than changes in passenger fares.
Railways aims to improve the operating ratio to 88.5 per cent during the next fiscal.
Urea prices will not increase for farmers even as freight charges have been hiked.
Railways Minister proposed freight hike up to 10 per cent for various commodities.
Indian Railways will borrow Rs 17,655 crore from markets through its two companies IRFC and Rail Vikas Nigam Ltd for capital expenditure during 2015-16.