Rail Budget 2016: Suresh Prabhu must hike Indian Railways passenger fares, Assocham
Rail Budget 2016: What may come as shock to the travelling common man, Assocham says Indian Railways must hike passenger fares to become viable. More than that, keeping an eye on the political backlash of such a move against the Bharatiya Janata Party (BJP) led NDA government, Railway Minister Suresh Prabhu was told that despite that, he should muster some political courage to ensure this happens in Rail Budget 2016.
Reputed players like KFC, Dominos, Haldiram, Bittoo Tikki Wala, Food Panda etc., have already been empanelled as vendors/aggregators for providing good quality food in Indian Railways. (PTI)
Rail Budget 2016: “There is lack of political will to raise passenger fares even though the reluctance is not shared by passengers, who would be willing to pay more provided the hike is accompanied by better services including timely arrival of trains, cleanliness at stations, safety and improvement in food,” the chamber said in a memorandum to Railway Minister Suresh Prabhu.
Rail Budget 2016: “Passenger losses (including suburban and non-suburban) have grown from 72 per cent of social obligation cost borne by the railways in F1975 to 95 per cent in F2014. The decline in passenger losses would also have a significant positive impact on railways’ finances.
Rail Budget 2016: It said the fare increase in Indian Railways would reduce the drastic losses on passenger traffic, now running at 68 per cent of passenger earnings. Assocham said that a hike in the passenger fares was necessary as they have been kept low at the cost of freight traffic.
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ANALYSIS / EXPERT COMMENTS
- Meghnad Desai
India needs a body like the UK’s Office of Budget Responsibility
- Anita Rastogi
In addition to simplifying the taxation structure, implementation of the GST regime will help eliminate most indirect tax issues
- Nirvikar Singh
Repressive regimes fail to deliver inclusive and substantive economic growth
- Anwar Shirpurwala
Extend duty incentives for mobile phones and tablets to all Information Technology Agreement goods
- Eric Mehta
Will this Budget be an enabler for ‘Make in India’, ‘Make for India’ and, most importantly, ‘Make India’ is something that will soon be answered