Rail fare hike on the cards, says Bansal
29 Oct 2012
New railway minister Pawan Kumar Bansal as well as his deputy, minister of state Adheer Kumar Choudhury, today strongly hinted that passenger fares may be hiked to improve railway services.
"Fare will not be increased for the sake of increasing fare. If fare is increased, then it will be for providing better services to the passengers," Bansal told newspersons in New Delhi.
"The improvement in services will have to be commensurate with the increase in fare," he said after assuming charge at Rail Bhawan. The aim is not to earn profits."
Bansal said he would discuss the issue with the full railway board Tuesday and then take it up with Prime Minister Manmohan Singh.
"We want to run the railways on sound financial principles," he said.
Passenger fares, particularly on the lower classes, have not been hiked for years. As a result, railway freight rates in India are perhaps the highest in the world, with obvious ramifications for the general economy. The financial crunch also means that funds for many of the ongoing projects are being curtailed.
