Hike in rail fares likely this budget, first time in 10 years

Railway Minister Pawan Kumar Bansal is likely to announce a hike in railway fares and sources said that the government won't wait for the Budget Session to announce it. This will be the first fare hike by Indian Railways in the last 10 years.

Sources said that Planning Commission Deputy Chairman Montek Singh Ahluwalia met Bansal and told him that the government may not give more funds to Railways. Montek said that it has to generate revenue to fund its dream projects including modernisation and expansion - particularly the dedicated freight corridor and high speed bullet trains.

Sources told CNN-IBN that a fare hike in passengers trains across the board is in the anvil. AFP.

Earlier, Trinamool Congress leader Dinesh Trivedi was forced to quit after he hiked fares in March 2012. In April 2012, AC I and AC II class fares were increased by 20 per cent. Mukul Roy, who replaced Dinesh Trivedi, announced a roll back later.

Railways estimate suggests that it looses Rs 21,000 crores annually in passenger fare segment. All eyes are on whether the sleeper class fares will be hiked.

The last across-the-board hike had happened at the start of the millennium, when Nitish Kumar held the charge. Railway has set up a tariff regulatory authority to restructure the passenger fares as well as freight charges.


Updated Date: Dec 20, 2014 15:09 PM

Also Watch

IPL 2018: Royal Challengers Bangalore eye revival against Chennai Super Kings as 'Cauvery Derby' comes back to life
  • Thursday, April 26, 2018 In the Kanjarbhat community, a campaign against 'virginity tests' is slowly gaining ground
  • Tuesday, April 24, 2018 It's A Wrap: Beyond the Clouds stars Ishaan Khatter, Malavika Mohanan in conversation with Parul Sharma
  • Monday, April 9, 2018 48 hours with Huawei P20 Pro: Triple camera offering is set to redefine smartphone imaging
  • Monday, April 16, 2018 Rajyavardhan Singh Rathore interview: Sports can't be anyone's fiefdom, we need an ecosystem to nurture raw talent

Also See