Railways-related stocks surge up to 6% on fare revision

NEW DELHI: Shares of companies linked to Indian Railways surged up to 6 per cent on Wednesday after the Cabinet approved railway projects worth Rs 7,500 crore in Odisha and Andhra Pradesh today.

The development saw scrips of Texmaco Rail Engineering, Titagarh Wagons, Kalindee Rail Nirman and Stone India surge as much as 6 per cent on the BSE. Titagarh Wagons gained 5.85 per cent, Texmaco Rail 5.37 per cent, Stone India 4.6 per cent, Kalindee Rail Nirman 5.2 per cent, Hind Rectifiers 2.36 per cent and Allcargo Logistics 2 per cent.

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“The new rates are at par with platform ticket charges and will be effective from November 20. It aims to meet the objective of controlling rush at platforms for the convenience of passengers,” PTI quoted an official as saying.

The government also moved to hike base for non-suburban rail fare by Rs 5 to Rs 10. The move comes after it was noticed that passengers were increasingly avoiding the hike in platform ticket prices by buying second class train ticket for Rs 5, thus, depriving the railways of revenues. Railways had raised the prices of platform tickets from Rs 5 to Rs 10 from April this year.