'Railways should raise short-distance fares'

NEW DELHI: Indian Railways should consider raising its short-distance fares to increase revenues, Planning Commission member B N Puri said here.

"Raising short-distance fares would help Railways earn higher revenues as compared to what it gets from government subsidies," he said at an Assocham seminar here.

Puri said Railways has been charging 20-25 paise per kilometre from passengers against 40-60 paise by road transporters.

"This puts a subsidy burden on the government and goes against the equity fare concept of transportation sector," he said.

Puri also said a sub-group has been constituted within the Commission to recommend ways and means for creation of logistics hubs. "The report of the group will also help the government frame an integrated transport policy," he said.

Puri said the recommendations of the group are expected within a month so that allocations are made in a proportionate manner for development of road, railways and air transport in an equitable manner.

He also said the Commission has asked RITES to prepare a report on the future needs of domestic transport sector for making allocations from investment point of view.

"At present, the transport sector is under heavy pressure and lacks a direction in which it should be driven. Efforts are being made to make this transport sector sustain the increasing growth expectations of a booming economy like that of India," he said.

It is in view of this the Commission was contemplating logistic hubs to take on the pressures of growing transportation sector, Puri added.