1. Railways fare hike coming soon, you will pay more to travel; sanction given by PM Narendra Modi

Railways fare hike coming soon, you will pay more to travel; sanction given by PM Narendra Modi

Railways has received sanction for a hike in fares from Prime Minister Narendra Modi which will make train journeys in India expensive, starting later this year

By: | New Delhi | Published: June 27, 2017 10:43 AM
Railways, railways fare hike, railways hike, Indian railways, Rail fare, Indian railways fare, train fare hike, Rail fare hike, narendra Modi, Suresh Prabhu, PM Modi, India news, latest news Indian Railways, Representational Image. (Source: PTI)

Railways has received sanction for a hike in fares from Prime Minister Narendra Modi which will make train journeys in India expensive, starting later this year, according to a report by The Indian Express. The green signal was given after a meeting of the infrastructure ministries in late April which was chaired by Prime Minister Narendra Modi himself. During this meeting, the state of Railways was reportedly reviewed. “Implement creeping increase in passenger fares” was one of the actionable points for the transporter issued by the PMO, as per the report.

Railways has agreed to a timeline of September 2017 for the move. However, the officials have denied that a hike is in the works till the move is actually announced. The meeting also mandated the Railways to work as ‘a commercial enterprise with focus on core operations to provide efficient and safe travel while enhancing customer experience’. Meanwhile, a top Railways official told The Indian Express that they are still trying to figure out what the exact statement means. “It is clear what ‘creeping increase’ means. Now we have to take a call on it. Nothing has been finalised yet,” the officer said.

As per the current model, Railways recover around 57 per cent of the total cost through passenger services while around 37 per cent amount comes from suburban services. However, it is only the AC III tier that fetches Railways profit but even that is neutralised because of the losses from the other classes. The social service obligation of the Railways, excluding staff welfare charges and law and order expenses, comes to around Rs 24,000 crore. Even 7th Pay commission report salaries payout is a burden.

Railways is also looking for a makeover by introducing services like trolley for catering, polite uniformed staff and onboard entertainment in Rajdhani and Shatabdi trains from October this year, PTI reported. The aim of Indian Railways is to enhance the experience of passengers in these premium trains. The estimated cost of the makeover of 30 trains – 15 Rajdhani and 15 Shatabdi will be around Rs 25 crore.

  1. S
    sukumar
    Jul 1, 2017 at 9:10 am
    How can it be Expensive when you yourself say that it is heavily subsidized except AC 3 tier. your le is misleading, politically mischievous. There is no problem when about 1.5 cr people are paying for energy without subsidy and even in the revised rates ordinary class used by poor will be spared. Rest all should pay for it. what is more important is not the fare but availability of seats and trains. even today people travel by ac sleeper buses by paying 2 times the cost. for you that is not expansive.
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