Railway Budget 2009-10: First class AC fares reduced by 2 per cent

The railway minister Lalu Prasad has announced a 2 per cent reduction in fares of AC first class, AC II tier, AC III tier and AC chair car. He also reduced passenger fares of ordinary passenger trains by one rupee for fares costing up to Rs50 per passenger for journey above 10km.

While introducing the interim railway budget for 2009-10 in the Lok Sabha today, he said since the fare for rail travel for 10km and below has already been reduced from Rs4 to Re1, this reduction will not be applicable for second class rail journey up to 10km.

''It is decided to reduce the second class and sleeper class fares of all mail/express and passenger trains this year to fulfill the aspirations of the long distance passengers,'' the minister said.

Over the last four years, the Railways has reduced the fares of AC first class by 28 per cent and AC two tier by 20 per cent, the minister pointed out.

He said the heavy reduction in passenger fares in these classes has only helped Railways to increase earnings. Railways had to face competition from reduced air fares offered by low-cost airlines in the past few years, he pointed out.

''Even as air travel is reportedly reflecting reduction in number of passengers due to economic recession, there has been a significant increase in the number of passengers of these classes on the railways. Therefore, it is decided to reduce the fares of AC first class, AC 2 tier, AC 3 tier and AC Chair Car by 2 per cent,'' he said.