Railways mulling fare revision in higher classes

Aug 07, 2011 |

New Delhi

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Railways is mulling a relook into the passenger fares of AC classes in wake of the Comptroller and Auditor General recommendation of rationalisation of freight and passenger tariffs to improve its finances.

Giving an indication to this effect, Railway Minister Dinesh Trivedi told PTI that "whatever has been observed in the CAG report, it will be taken into consideration."

He, however, said "it (revision of fares) would be thought of without affecting the general class which is used by poor people whose affordability has to be taken into consideration."

The minister also made it clear "whatever the policy matter (increasing fares), as and when, it will be brought to Parliament first."

Passenger fares in any class has not been revised for over eight years despite persistent demands from the Planning Commission and other quarters.

Most recently, Railways' unions had favoured a revision of fares keeping the PSUs poor financial condition in mind.

The CAG report on Railways for 2010-11 tabled in Parliament last Friday had suggested that "the way forward for railways to improve its finances is to rationalise both freight and passenger tariffs."

It said the rationalising has to be thought of through some form of "pre-determined non-discretionary inflation indexing."

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