Rail Budget 2012: Hike rail fares to modernise fund starved Railways, says ASSOCHAM

BANGALORE: Industry body ASSOCHAM today advocated increase in rail passenger fares for all classes ranging from Rs 10 to Rs 100 for capacity expansion, modernisation and building infrastructure, which it says will require Rs 14 lakh crore over the next ten years.

The organisational structure of the Railways should be redesigned for customer care and resource generation and it should increasingly become self-sufficient over the next 10 to 15 years and provide good profits to the government, it said.

For this, a three-way split is essential with passenger and freight sections becoming separate entities and operations put under the direct control of the Railway Board, the Associated Chambers of Commerce and Industry of India said in a statement ahead of the Railway Budget on March 14.

"The Railways may consider withdrawing from non- transportation activities through corporatisation and outsourcing to focus on enhancing passenger safety.

"Private companies should be allowed to participate as joint venture partners to bring in substantial funds and improve services," said Secretary General D S Rawat quoting the study titled 'Railway Challenges - Restructuring is the Solution.'

Services under the private sector could include catering, laundry, cleaning of trains, provision of entertainment and information systems within and outside trains, placing of advertisements, food courts, provision of wheel chairs and medical facilities.

"Due to rapid urbanisation and rising incomes,the huge gap between demand and supply of passenger seats and berths is further widening which could lead to frustration among people.

"The Centre and states must prepare the public to share the burden of rising operating costs", it said.