Rail Budget 2013: Dearer fuel will eat up half the revenue from fare hike, says Bansal

CHANDIGARH: Rail Minister Pawan Kumar Bansal on Februaray 2, 2013 said that half of the revenue, likely to be generated from the recent hike in the rail fare, will be incurred on fuel expenses after the Centre's recent decision to introduce dual price regime for diesel.

Bansal told reporters that out of Rs 6,600 crore, which was likely to be raised through increase in the fare, Rs 3,300 crore would now be spent on meeting the hike in diesel prices effected recently by the Centre for bulk consumers.

He said that the Railway was in need of funds to the tune of Rs 4.5 lakh crore for various future projects including electrification, new rail tracks etc while Rs 1.5 lakh crore is immediate requirement for various ongoing projects.

Asked whether the Railway will propose more fare hike in the forthcoming budget, he evaded a direct reply on it.

The Chandigarh MP, however, stressed on the need of mopping up resources for strengthening the railways.

The announcement of fare hike was made a few weeks ahead of the Railway budget, with revised prices coming into effect from January 22.

A part of this revenue would be spent for a special cleanliness drive under which 100 railway stations, including Chandigarh, have been shortlisted, he said.

Bansal said that the Kolkata-Ludhiana freight corridors will be completed during the next five years.