Railways considering fare hike
05 Sep 2011
The Railways is preparing to hike passenger fares after a decade, with a flexible increase in sleeper and 3-tier AC classes, linking it to the fluctuations in fuel prices, reports quoting official sources said.
Also, in a significant departure from the normal practice, the ministry would also conduct a survey to know what more it could offer to upper-class passengers before they are asked to pay more for train journeys.
According to the Hindustan Times, which quoted an un-named top railway official, a private agency would conduct the survey for air-conditioned coach passengers.
Railways minister Dinesh Trivedi is also in favour of a survey on freight rates, which are the highest in this part of Asia.
The paper quoted a top railway official as saying that the two-tier AC and first class coaches would also come with enhanced facilities after the Railways get the survey report. The last passenger fare hike was effected under railway minister Nitish Kumar in 2002.
In June, the then chairman of the Railway Board, Vivek Sahai, told a parliamentary panel that an increase of 10-15 per cent in fares could yield additional revenues of between Rs2,000 and Rs2,500 crore.
Meanwhile, the common man, already reeling under spiralling prices of essential commodities, would be forced to put up with further strain on his pockets with the Indian Railways considering an 8-12 per cent hike in passenger fares.
The move is seen as a desperate bid by the Railways to pull itself out of the red.
