|
|
|
|
|
18th Jamadi-us-Saani 1435 | Saturday, Apr 19, 2014
Business

Rail fares to increase again?

Sunday, 10 February 2013
Comments(0)
New Delhi, February 10:

With the recent hike in diesel prices putting an additional burden of Rs 3,300 crore on Railways, the PSU behemoth is considering to further increase passenger fares or raise freight charges.

Among various options, Railways is contemplating whether to introduce fuel adjustment component in the fare structure to increase fares in all classes or hike passenger fares by a few paise per km, sources said.

The ministry, which is in the process of finalising the Rail Budget 2013-14 to be presented on February 26, is likely to raise catering charges in premier trains like Rajdhani, Duronto and Shatabdi, which will be part of the fare.

Railways is already reeling under deficit of Rs 25,000 crore in the passenger segment.

It has hiked passenger fares by 21 percent from December 22, aiming to mop up Rs 6,600 crore in a year, but the diesel price hike of Rs 10.8 per litre has put additional burden of Rs 3,300 crore annually.

Railway Minister Pawan Kumar Bansal did not rule out another hike when he was asked about it a few days ago.

"We have to form our view on this (increasing rail fare) within next few days. We are working on it," Bansal said. "Wait for 16/17 days," he had said when pressed if the fare hike was in the offing.

Bansal has met Prime Minister Manmohan Singh and Finance Minister P Chidambaram to discuss how the financial burden on Railways could be neutralised.

As far as freight rate is concerned, Railways had increased it by 20 percent in March 7 last year with a target of additional earning of Rs 18,000 crore annually.

"Though revising the freight rate is an option but we do not want to outprice ourselves by increasing freight charges further as we have to offer competitive tariff to remain in the market," a Railway source said.

Railways aims to divert goods transportation from roads to rail by offering attractive rates as currently the national transporter has only 36 percent market share as compared to about 50 percent in the US and China.

PTI

Latest News

The MIM And Its Secret Alliances

Majlis-e-Ittehadul Muslimeen is probably the only party in the State which never had a pre-poll alliance with any politi ...

Bhujbal back-stabbed Bal Thackeray; steepe...

MNS chief Raj Thackeray today launched a scathing attack on PWD Minister and NCP nominee from Nashik Lok Sabha seat Chhagan Bhujbal, allegin ...

Shiite Muslim cleric reaffirms praise for Rajnath Singh, calls Congress ...

Shiite Muslim cleric, Kalbe Jawad, reaffirmed his praise for the Bharatiya Janata Party's president, ...

Related News

Doha Bank to buy HSBC Bank Oman business in India

Qatar-based Doha Bank has agreed to buy HSBC Bank Oman's business in India that has gross assets of ...

'Slumping' Barbie sales hurt toy giant Mattle's Q1 earnings

Toymaker Mattle's sales of its iconic Barbie dolls have reportedly tumbled 14 percent in the first q ...

Gold prices recovered on mild retailers buying

Gold prices recovered by Rs 20 to Rs 30,250 per ten gram in the national capital today on scattered ...

Post new comment

CAPTCHA
This question is for testing whether you are a human visitor and to prevent automated spam submissions.
Image CAPTCHA
Copy the characters (respecting upper/lower case) from the image.

Rs. 29500 (Per 10g)

Opinion Poll
Do you think Kumar Vishwas can beat Rahul Gandhi in Amethi?
YesNoCan't say

Comments >>

Matrimony | Photos | Videos | Search | Polls | Archives | Advertise | Letters

© The Siasat Daily, 2012. All rights reserved.
Jawaharlal Nehru Road, Abids, Hyderabad - 500001, AP, India
Tel: +91-40-24744180, Fax: +91-40-24603188
contact@siasat.com