Indian Railways Is Likely To Raise Fare Prices For Passengers

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Indian railways are considered to be having biggest railway network with diversified operations. It is considered to be the cheapest medium for travelling within different states of the country. Now Indian Railways have considered to passenger fare hike to 8%-12%. Mr. Vinay Mittal, Railway Board Chairman declared that the passenger fare hike is applicable to all classes. Mr. Mittal points increase in fuel bill that includes diesel and electricity cost (around 18-20% of annual expenditure) is one of the major reasons for passenger fare hike. Mr. Mittal also stated that railway expenditure by the end of financial year is likely to increase up to Rs. 78000 crore from Rs. 73000 crore.
Mr. Mittal specified on the point of investible surplus which is considered to be dropped to Rs. 4000 crore from 13000 crore due to revised economic growth target done by the government from 8% to 7.5%. Moreover, Mr. Mittal exemplifies that people will be willing to pay more if they are getting good facilities and services. Furthermore the railway ministry is also worried about quality of services it provides besides its plans to increase passenger fares. Railway Minister Mr. Dinesh Trivedi has clarified in his statement that revision of fares would be done by taking in to poor people or general class in to consideration, so that they can afford it as well.
Indian Railways manages approximately 10,500 trains and ferries along with 2.2 crore passengers each day. However in 2002-2003, fares of second class mail as well as express trains were increased from Rs. 15 to Rs. 16. Also for long distance trains covering distance up to 341 km, prices were increased from Rs. 1 to Rs. 6. Moreover, thirty percent of railways total revenue generation is contributed by passenger fare. Furthermore as railways keep their fares stagnant, Indian railways are facing severe fund problems due to growing inflation. However All India Railwaymens Federation general secretary Mr. Shiva Gopal Mishra mentioned that there has been no increase in passengers fares since past eight years. Perhaps in last three years Rs. 1 has been reduced each time. Besides that this year passenger subsidy is more likely to go up which was recorded to be Rs. 20,000 crore previous year.
However, Parliamentary Railway Convention Committee (PRCC) along with planning commission are also suggesting passenger fare hike. Hence in order to meet its requirements and to stand up against growing rise in fuel it has become inevitable for Indian railways to raise passenger fares. Thus it has been proclaimed that freight and passenger fare are directly aligned with the market prices.

About the Author:
The author is an amateur writer and this write-up mainly focuses on the importance of information with respect to passenger fare hike done by Indian railways after 2002-03.



Article Originally Published On: http://www.articlesnatch.com


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