Profitability still a station too far

Written by fe Bureau | Updated: Jun 26 2014, 08:36am hrs
Rail fareIt remains to be seen whether, as in the case of the hapless Dinesh Trivedi, Sadananda Gowda?s proposals in the Rail Budget will be subject to similar rollbacks too.
Given the railways loses over Rs 26,000 crore in passenger traffic every year and does not have the money to even meet capacity expansion/safety requirements, Fridays 14.2% hike in passenger fares and 6.5% in freight was long overdue and would have fetched the national carrier Rs 10,000 crore, reports fe Bureau in New Delhi.

While the governments decision to roll back the fare hike for second-class suburban trains up to a distance of 80 km will leave it poorer by R700 crore, it also leaves the railways vulnerable to further such pressures.

It remains to be seen whether, as in the case of the hapless Dinesh Trivedi, Sadananda Gowdas proposals in the Rail Budget will be subject to similar rollbacks too.

Anil