Coming Railway Budget is likely to see changes in passenger fares and freight
Railway fares likely to increase in next Budget
New Delhi: With the government ignoring the Fuel Adjustment Cost due this month, the coming Railway Budget is likely to see changes in passenger fares and freight. While there has been a slump in oil prices, adding to the demand that fares be cut, there is also a contrasting view that fares should be raised to offset the rise in power costs.
While the Railways’ total energy bill is shared between diesel and electricity in a 60:40 ratio, officials admit the rise in the power bill is more than compensated by the sharp fall in oil prices.
“As far as fuel cost is concerned, there is merit in the demand that passenger fares and freight be cut. However, the Railways are financially stressed due to unprofitable rail link projects, which may pressure the government to hike the fares moderately,” a senior Railway Board official said.
Railway minister Suresh Prabhu recently toed the line of predecessor D.V. Sadananda Gowda that the people need to share the burden for better services.
( Source : dc correspondent )
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