It ranges from 2 paise a km for II class ordinary (suburban) passengers to 10 paise for AC chair car
In a rather unusual move, Railway Minister P.K. Bansal on Wednesday announced an across-the-board hike in passenger fares less than two months before presenting the Railway budget. The hike comes into effect from January 21. As a consolation, however, Mr. Bansal said there would be no further fare hike in the budget.
The increase ranges from two paise a km in the basic fare for second class ordinary (suburban) passengers to 10 paise a km for AC chair car and AC first class.
For instance, a passenger travelling from New Delhi to Chennai by the Tamil Nadu or G.T. Express will have to pay an extra Rs. 91 for a second class ticket, Rs. 132 for a sleeper ticket, Rs. 312 for AC-3 tier, Rs. 132 for AC 2-tier, and Rs. 223 for AC first class on the basic fare. (The increase in AC 2-tier and AC first class fares is in addition to the hike made in April. The hike proposed in the rail budget then for other classes of travel was rolled back immediately thereafter.)
Interestingly, the hike effected by Mr. Bansal for the economically sensitive classes is more than what was proposed by his predecessor Dinesh Trivedi (of the Trinamool Congress) in his budget for 2012-13. But Mr. Trivedi incurred the wrath of his party chief, Mamata Banerjee, for his across-the board-hike, and lost his job.
The second ordinary and sleeper classes, heavily patronised by the economically weaker sections, had remained untouched for a decade.
Non-committal on freight
To repeated queries, he declined to say whether there would be any hike in freight charges too. “I am not saying anything [about freight charges] either way. We are not saying anything now.”
Mr. Bansal said, “We will go around explaining to the people the need for the increase [in passenger fares]. I am sure they will understand the financial problems faced by the Railways. ……We cannot let the Railway system collapse.”
Even as losses in the passenger segment were relentlessly going up, revenue from freight was falling due to a general slowdown in the economy, he said. As of December 2012, coal movement, the bread and butter of the Railways, was down by 13 million tonnes.
“We could not have waited till the Budget. A careful assessment of our financial situation showed that unless we hiked the fare immediately, we would not be able to carry on with some of our essential safety and passenger amenity-related activities.”
The fare hike, he said, was expected to yield Rs. 6,600 crore a year. During the current financial year (up to March 31), it would help the Railways mop up an additional Rs. 1,200 crore.
Noting that passenger fares had not been hiked over the last 10 years except for the first, AC two-tier and AC first/executive classes in April last, Mr. Bansal said the losses in the passenger segment were expected to go up to Rs. 25,000 crore this financial year, a four-fold increase over the figure of Rs. 6,159 crore in 2004-05. In contrast, input costs increased by 10.6 per cent every year during the period between 2004-05 and 2010-11. “Cross-subsidy through business [is also] no more viable in view of the fast-evolving competition from other modes of transport.”
Mr. Bansal said the Railways would do away with levying developmental charges on passenger tickets, and all chargeable fares would be in multiples of Rs. 5.
Keywords: Rail fare hike, Pawan Kumar Bansal, Indian railways
The rail fare hike is unhappily justified, even if it affects us all who have to pay for the fares adversely, since it had not been done for a decade. However, the changes should have been made effective from April 1st, or after three months after the announcement date. After such a long delay, another few months would not have
seriously affected the financial position of the railways! This would have ensured that there is no confusion about those who have already booked their travel at earlier rates for travel after Jan 21st - for which, no clarifications have still not been announced, and the Railway enquiry give varying replies!
What prompted the Railway ministry to announce the hike much before
the formal annual railway budget ? There is no rationale behind the
proposed hike among various categories. The hike is equal and no
difference is maintained between the hike in a sleeper class and an AC
2-tier. The Railway Minister has not done his home work properly. Mr.
Bansal has intelligently spared the urban and metro commuters with a
very small hike. Though the minor hike in suburban train fare will be
a good news for suburbanites but the Ministry has failed to tap the
potential of reaping more revenue from this particular sector.
Everytime when the fare is hiked, it is loudly said that a portion of
incremental revenue would be spared for safety measures. Railways has
to do much on this aspect. Besides, priorities should be given to the
incomplete projects pending in various states.
What about the facilities provided to the passengers? Last time when I travel in AC 3 tire from Calicut (Kerala) to Chennai and when I complaint that the dust bin is full, the TTR itself told me that there is no provision to clean the dust bin in the compartment and you can throw the waste out side.
If they think by increasing price of fare they will provide better
service and Security to then let them increase but we need a modern rail
which can take less time to travel and a better Security Arrangement and
a world class railway.
Fare increase is okay but will the additional revenue be properly utilized is the million dollar question -- the money must first and foremost be spent on safety than anything else.
I also agree that fare increase is inevitable. but the facility to passenger's are worst and maintenance in the coach's like second class and sleeper class are worst.... when it will be taken care??????
NO UNIFORMITY in the revised rate all over Mumbai Region. In the above article its said that the midnight of 21st January there would be a hike. however just to bring to your notice that the Rate has been already revised in the central Mumbai and not applied in Western Mumbai. Which is SAD TO KNOW.
The two main plagues affecting Indian Railways are 1) non-revision of passenger fare for more than a decade and 2)enormous categories of concessions granted to various category of passengers. Though the present step of fare increase may arrest the plague to a certain extent, the Railways has to make great headway in curbing the main plague-concessions. Unless this is done, Railways will have its own death in the near future like many failed PSUs.
Fares are hiked, yet the poor hapless passengers are not provided safety and security. Indian trains are the most untidy and unclean. Lack of proper maintenance causing fatal accidents. Unauthorised people without tickets freely travel in trains causing nuisance, inconvenience and disturbance for travellers. Eunuchs and urchins demand money from passengers often its physical extortion. Rogue elements harm women passengers in Ladies only compartments. TTEs and RPF personnel turn a blind eye to this. Can the Government ensure such problems are not caused for passengers?
I am a regular follower of The Hindu. I request prominent newspapers like The Hindu to raise such issues and highlight the plight of passengers especially the physical extortion from Eunuchs, urchins, peddlers etc. Railways should not allow such people in trains without tickets and if they are spotted stern action should be taken.
In UK, every year on 2nd January, train and bus fares go up without
fail. Indian politicians try to be poor friendly in public, but they
never blink an eye lid when they rob the poor. It costs money to run a
train and everybody knows it.
I agree that fare increase is inevitable. One question however needs
to be considered seriously. Railway Board and Railway employees are
on par with other Central Government employees in all the matters.
Why they should be allowed to get the benefit of free travel that too
even after retirement. It is time this facility should be done away
with. Let the Finance Ministry work out total revenue lost by the
Railways because of this life long concession. I guess it should be
enormous. No doubt the railway employees will be up against this
move. But it needs to be done without any further loss of time. It is
a substantial benefit on which they do not pay any income tax. Hope
someone in the Government would look into it.
the hike is needed to keep the indian railway aloft.railway fares are
the cheapest now. the recent hike will increase it marginally.it will
not hurt the commonman as is the case with bus fares in tamilnadu.
With out the increase in rail fare, how can you run the railways. I donot understand the opposition mindset. When the BJP comes to power they won't increase the fair or what Lalu did and Mamtha made Trivedi to resign from the railway minstry. Political angle should not be brought into these to run the country.
Its confusing "with effect from January 21 midnight". This article is
not clear. Booking had already open till mid of May. What will happen
for those booked tickets already?
Atlast, somebody has shown the courage (and sensibility) to get things
on track.
Another blow by the Government to the aam aadmi of India! Why not look at innovative ways of saving money in Railways, than simply increasing the fares? Simple things like saving water and electricity could potentially have a massive saving! Why not make better investments in the railway infrastructure and passenger safety and stop calculating the time lapsed since last fare increase...
I wish this additional sum gives Railways a relief. I would be happy if
the sum is used to invest in safety & security technologies.
It's a good move in direction of strengthening the Indian Railway
Network.It should have been done a long time back. "Unless you rise
prices, quality can't be improved and expansion of railway services
can't be done". Following populism measures delays the development that
could take place much earlier. let not development entangle in populism
measures.
Very welcome decision!
While the cross subsidy from freight to passenger traffic is the internal management issue, the pathetic situation of rail travel, overcrowd and unhygienic boggies are the issues common people face.
With this hike, lets hope that some funds will be available for better management of railways.
Citizens are not fool to not to able to see progress of China in rail while India lags pathetically behind. Its time to revamp railways on Company & professional lines.
Good move!
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