Facing an acute financial crisis, the Narendra Modi Government on Friday effected a major hike in passenger fares and freight charges from next week. While passenger fare was increased by 14.2 per cent in all classes, freight charge was hiked by 6.5 per cent with effect from June 25, 2014. The hike will bring Rs8,000 crore annually to the Railways.
Railway sources said that there is also a move to limit the grant of travel concessions to various categories.The decision comes a week after Prime Minister Narendra Modi said the country should be ready for “tough decisions”.Due to the hike, a passenger will now have to shell out Rs4,354 for a journey between Delhi and Kolkata by AC-I on Delhi-Howrah Rajdhani, instead of Rs 3,813 the ticket cost earlier. Travel by AC-II on the same train will cost Rs2,508 instead of Rs2,197 and by AC-I, it will cost Rs1,728 instead of Rs1,514.
The journey between Delhi and Mumbai by Rajdhani will cost Rs4,073 instead of Rs3,567 in AC-I, Rs2,357 instead of Rs2,064 in AC-II and Rs1,617 instead of Rs1,416 in AC-III.Travel between Delhi and Chennai by Delhi-Chennai Rajdhani will now cost Rs4,673 instead of Rs5,430 in AC-I, Rs3,129 instead of Rs2,740 in AC-II and Rs2,119 instead of Rs1,856 in AC-III.
Former Railway Minister Mallikarjun Kharge had issued a “hurried” notification effecting a hike in passenger fares by 14.2 per cent across the board and freight charges by 6.5 per cent May 20 onwards. But its implementation was stayed because the announcement was made on the day when Modi emerged as new head of governance at the Centre. Kharge then “immediately” came out with a statement directing the Railway Board to leave the decision on the hike to the new Government.
While Opposition parties opposed the hike, senior Railway officials said this will partially restore the Railways financial health in both mid and long terms. Passenger hikes in previous years, especially for second class and suburban travel, were mostly rolled back. In one instance, a proposal to hike rail fares led to the ouster of the then Railway Minister Dinesh Trivedi in 2012.
While a flat 10 per cent hike has been announced in all classes, an additional 4.2 per cent increase under fuel adjustment component (FAC)-linked revision scheme will take the upper revision of fares to 14.2 per cent, according to the official statement.
“It will leave an adequate amount to modernise existing infrastructure and build new one as visualized by the new regime. The decision has restored an announcement of May 16 when the same proposed hike was effected but immediately put on hold,” said a Railway official.
The speed with which the NDA Government took the decision on Friday afternoon has caught even the senior-most Railway officials by surprise. Railway Minister DV Sadananda Gowda on Wednesday had conducted a meeting comprising of top Railway officials from across the country and conveyed the officials to either perform or perish.