PM Modi's rail shocker Passenger fare, freight rates hiked
Source: The Sangai Express / India Today
New Delhi, June 20 2014 :
The Central Government has increased the railway fares by 14.2 per cent with effect from Friday.
With Railways facing severe financial crunch, passenger subsidy has touched Rs.26,000 crore, the Railway
Ministry has hiked passenger fares in the Rail Budget 2014-15 .
The UPA Government had left passenger fares unchanged in the interim railway budget in February ahead of the general elections, presenting a vote-on-account leaving the difficult job of managing the national transporter's weak finances to the next government.
The Rail Budget is slated to be presented by Railway Minister Sadananda Gowda in the second week of next month.
According to reports, the Railways was aiming to garner Rs.8000 crore through the increase in passenger and freight charges last month.
Railways had announced hike on May 16 in both passenger fares and freight rates by 14.2 per cent and 6.5 per cent respectively from May 20 .
However, the hike notification was put on hold later in the day leaving the decision to the next Railway
Minister.
Shortage of financial resources is a key constraint to railways following the desired path, said the official, adding the focus of the Rail Budget will be on safety, security and service.
While the national transporter needs a huge investment to upgrade its signalling system and strengthening the track to prevent accidents, it doesn't have enough money to do that.
The operating ratio, a measure of expenses as a percentage of revenue, is seen deteriorating to 90.8 per cent in 2013-14 compared with a budgeted 87.8 per cent and 90.2 per cent in 2012-13.Railways have targeted to improve this to 89.8 per cent in 2014-15 .