Rail freight rates to go up by 5.7 % from April; passenger fares to rise in October
23 Mar 2013
There is no respite for the harried passenger. Indian Railways has planned yet another fare hike in October, after it raises freight rates on 1 April, as part of the process of passing on the burden of fuel price hike to users.
Beginning 1 April 2013, almost everything, from foodgrains and edible oil to cement, coal and iron ore, will be costlier as the Railways revise freight rate upward by about 5.7 per cent, to absorb rising fuel costs.
The Railways proposes to implement the fuel adjustment component-linked revision in freight rates announced in the Rail Budget and this is expected to help it mop up Rs4,200 crore in a full year.
''The freight rate has been hiked by about 5.7 per cent on all commodities and the new rate will be applicable from April 1,'' said Vinay Mittal, chairman of the Railway Board, adding, ''a notification to this effect is being issued today.''
He said the Railways would review the issue in September in the light of the then existing prices.
While the fuel adjustment component (FAC) on train passenger fares to be introduced in October this year, could push up or pull down passenger fares along with diesel prices, it is more likely that fares would only go up, given the international prices of crude oil.
Railways has also raised the freight loading target for the year to 1,047 million tones, up 40 million tonnes from last year.
Railway minister Pawan Kumar Bansal had earlier promised to avoid any fare hikes in the near future in reservation or cancellation charges, though, he said, cross subsidy from freight to passenger segment had touched Rs25,000 crore.
Bansal also pitched for evening of the operating ratio (amount spent to earn every Rs100) of the Railways from the current level of 88.8 per cent to 80 per cent through a more efficient use of available resources, including infrastructure.
Bansal had, in January 2013, announced a 20 per cent across-the-board passenger fare hike beginning 21 January to raise an estimated Rs6,600 crore, the minister said.
Railways had also raised passenger fares late last year.
