Rlys gets moral support after panel suggests hike in fares

Railway Ministry got a moral support for increasing passenger fares for the Indian Railway from its Standing Committee comprising of most of the political parties. Though it's the first time report of the standing committee was tabled in both the houses of the Parliament when its Chairman TMC MP Sudip Bandopadhyay is languishing in jail.

The 13th report of the standing committee on Railways on demands for grants (2017-18),which was tabled in both the houses of the Parliament unanimously recommended to reduce the cross subsidy on the passenger traffic. For this committee suggested to constitute an independent authority for fixation of passenger fare and freight charges depending on cost involved so that it brings rationality and flexibility in pricing.

This year, Finance Minister Arun Jaitley who presented General Budget clubbed with Railway Budget suggested to institute an autonomous Tariff authority for the Railways. Now after this recommendation from the standing committee Government might announce independent tariff authority very soon.

In the deliberations in the standing committee meeting members found that passenger earnings target is revised to Rs 48,000 crore at revised estimate for 2016-17 from 51,012 crore at budget estimate 2016-17 while till end of January,2017,the actual revenues from passenger earning has been only Rs 34,535 crore which is only 72%.

The committee were apprised that there was a shortfall of 3000 crore on account of passenger earnings while they were 5-6% more than the last year and a decline to the extent of Rs 9000 crore in freight revenue.