rediff.com

NewsApp (Free)

Read news as it happens
Download NewsApp

Available on  

Rediff News  All News 
Rediff.com  » Business » Train travel to get costlier, hike in fares likely

Train travel to get costlier, hike in fares likely

Last updated on: June 17, 2014 19:43 IST

Train travel to get costlier, hike in fares likely

     Next

Next

The Railway Ministry is considering a hike in passenger fares in the Railway Budget 2014-15 slated to be presented by Railway Minister Sadananda Gowda in the second week of next month.

"The hike in both passenger fare and freight rate is inevitable as the financial position of railways is not so good. However, the quantum of hike is yet to be finalised," a senior Railway Ministry official said.

Click NEXT to read more…


Photographs: Reuters

     Next

Train travel to get costlier, hike in fares likely

Prev     Next
Prev

Next

Asked whether the hike will be announced in the Rail Budget, the official said, "One cannot rule out its possibility. But at the same time it is not necessary to announce the hike in the budget only. It could happen before or after the budget also."

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. 

Click NEXT to read more…


Photographs: Reuters
Tags: UPA

Prev     Next

Train travel to get costlier, hike in fares likely

Prev     Next
Prev

Next

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.

Railways was aiming to garner Rs 8000 crore (Rs 80 billion) through the increase in passenger and freight charges last month.

Click NEXT to read more…


Photographs: Reuters
Tags: 1

Prev     Next

Train travel to get costlier, hike in fares likely

Prev     Next
Prev

Next

Currently, Railways is facing severe financial crunch with passenger subsidy touching Rs 26,000 crore (Rs 260 billion).

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.

Click NEXT to read more…


Photographs: Reuters
Tags: 1

Prev     Next

Train travel to get costlier, hike in fares likely

Prev     More
Prev

More

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. 


Photographs: Reuters
Tags: 1

Prev     More
© Copyright 2014 PTI. All rights reserved. Republication or redistribution of PTI content, including by framing or similar means, is expressly prohibited without the prior written consent.