Steep hike in rail passenger fares unlikely

NEW DELHI: After a steep hike in passenger fares last year that hit suburban commuters and middle class passengers, it appears that the Railways may not go in for a repeat performance in this year’s rail budget.
At least 80 new trains are expected to be introduced months before the four states go to the polls.
Railway officials feel passenger tariff structure might only be raised by around two per cent or so and the freight tariff would be left largely untouched. Freight is the Railways’ breadwinner and any further hike in rates could be counter-productive.
It is felt that tariff for petroleum products should be reduced for the Railways to be competitive against the road sector and pipelines. Road transporters are already much ahead with the Railways merely having a 40 per cent share of the goods traffic.
Of the entire rail freight, over 60 per cent comprises just two items — coal and iron ore. And in both cases, the producers have been complaining for long that the Railways charge them more than the production cost.
According to railway officials, the political masters would keep the assembly elections in mind while fixing the passenger fares. Last year’s budget saw a sharp hike in fares by eight to 33 per cent for monthly season tickets, short distance passenger trains, second and sleeper classes tickets for long distance trains.
Income from passenger fares upto January had fallen by around Rs 450 crore, whereas the freight had performed well above the target. Passenger income is expected to grow during February.