Railway unions seek matching grant from government in case of rollback

NEW DELHI: Railway employees federations today appeared to have climbed down from their opposition to any rollback in passenger fares.

After meeting new Railway Minister Mukul Roy here, the unions said they were not averse to the rollback but the government should compensate for the shortfall the railways would incur if hike in passenger fares are rolled back.

Railways are expected to earn Rs 4000 crore from the passenger fare hike proposals as per the Rail Budget proposals.

However, if the government decides for a partial rollback in sleeper and second class fares, then the national transporter is expected to lose Rs 3000 crore.

Railway unions, who have threatened to launch an agitation in the event of a rollback in passenger fares, met Roy at his chamber in Parliament and discussed the pros and cons of fare hike proposals.

"We do not have any problem with rollback but the government must give a matching grant to railways as the financial condition of railways is not good," said Shiv Gopal Mishra, General Secretary of All-India railway Federation.

Railway federations have also written to Prime Minister Manmohan Singh drawing his attention to the prevailing financial condition in railways.