The current increase in railway passenger fares and freight rates will add to the rising inflation and hit the economy hard, affecting the poor, Chief Minister Jayalalithaa said on Friday.
When people were hoping that the NDA government would take steps to ease inflation, the 14.2 per cent increase in passenger fares and 6.5 per cent increase in freight rates would fuel inflation, she said in a statement here.
Recalling that in the previous Railway Budget, the UPA government introduced the fuel price-linked tariff structure, Ms. Jayalalithaa said that in the recent interim budget, the Railways proposed a 14.2 per cent increase in passenger fares and a 6.5 per cent increase in freight rates on May 16, but the plan was put on hold immediately for electoral reasons. But now, the Railways, in an attempt to meet the increased annual expenditure, have increased the fares as envisaged by the UPA government. This forced the people to fear whether the NDA was following the “wrong” policies of the UPA, she said.
To set right the mess in the Railways created by the UPA, the Centre must find ways of mobilising resources, Ms. Jayalalithaa said.
PMK seeks rollbackV.S. Palaniappan adds:
Pattali Makkal Katchi founder S. Ramadoss urged the Union government to withdraw the increase, which he said would entail a burden on the people.
Dr. Ramadoss recalled that he had opposed the UPA government’s plan to set up an independent authority for fixing rail tariff. He pointed out that it would lead to autocratic decisions on fare increase at quick intervals as it happened in the case of petroleum products.
He said rail fares were hiked twice within a year, in January 2013 and in October 2013. Another increase would be anti-people, he said.
Indian National League State president S.J. Inayathullah said people voted the BJP to power, anticipating a change; but the fare increase would only cause disappointment among them. The increase, coming as it did within a month of the BJP coming to power, was condemnable, he said.
