Railways fares to be hiked
New DelhiAfter two years, railway passenger fares are expected to be hiked by 7-10 percent. The new fares are expected to be announced by the end of this month.
The rationale of the surcharge proposed is to part-finance the Rs 17,000-crore Railway Safety Fund. According to the proposal in Rail Bhavan, the passenger fare hike would be across-the-board - in other words, make lower-class travel more expensive as well as upper-class travel. Freight rates, however, will not be touched.
According to senior ministry officials, the surcharge is likely to be imposed by August 25 by when the Railway Board is expected to finalise the structure of the safety fund.
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100 percent FDI in realty soon
New DelhiThe Government is likely allow only specialist township and infrastructure developers with a specified minimum net worth to develop integrated townships with up to 100 per cent FDI participation. These companies would also be required to adhere to minimum capitalisation norms and undertake to develop a certain minimum contiguous area.
The government sources said guidelines which would be "very liberal" would be crystallised after a couple of meetings of the committee and announced by the end of August.
Sources added that companies whose core activity is not development of townships and infrastructure would not be allowed under the scheme. This essentially means that entities whose core activity is manufacturing or retail would not be allowed to seek government approval for development of integrated township.
The government is also unlikely to extend any concession for development of townships in remote and backward areas. The objective of the policy is to create infrastructure at locations close to big cities or satellite townships so as to reduce the pressure existing facilities.
The plan is that foreign investors should be able to supplement the governments efforts in creating additional urban infrastructure, sources added.
A proposal to allow up to 100 FDI in development of integrated townships was cleared and notified by the government in May 2001. Under the policy, the developer would be required to build up commercial premises, hotels, resorts, and infrastructure facilities such as roads, bridges and mass rapid transit system, besides residential units within the township.
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