Rail minister hints at yet another fare hike
8 Feb 2013 7:16 AM IST
The aam admi should be prepared for yet another rail fare hike. Though there was a hike last month itself, minister Pawan Kumar Bansal hinted at the possibility of another one on Thursday.
When asked about the second round of fare hike, Bansal refused to give a direct answer but hinted at a possibility. When asked about the increasing railway fares for the second time in view of diesel price hike, Bansal said, ‘Wait for another 19 days.’ Sources in the ministry said that the second round of fare hike could be part of the railway budget document which will be presented in parliament on 26 February.
With the recent increase in diesel prices, Bansal did not discard the possibility of rail fare hike. In fact he noted that this had caused an additional burden of Rs 3,300 crore on railways. ‘We were expecting Rs 6,600 crore after the recent passenger fare hike. But the Rs 10.80 per litre diesel hike would cost the railways Rs 3,300 crore a year,’ he said. Sources said that this could mean that the government was actively considering ways and means to mop up this deficit and fare hike was an option.
‘Fund is required for laying new lines, development of stations and for ongoing projects. Fare is one source but funds can be garnered from other non-traffic avenues which we are exploring,’ the minister said. Earlier this year, on 9 January, Bansal had announced a hike in railway passenger fares after a decade. The increased fares were implemented from midnight of 21 January this year. At that time Bansal had said the ministry expected to garner Rs 6,600 crore from the fare increase.
Bansal also said that the Cabinet has approved three projects for setting up new rail lines in Chhattisgarh and Gujarat. The Cabinet Committee on Economic Affairs on Thursday approved new rail line projects worth over Rs 2,300 crore in which two projects are in the virgin coal belt in Chhattisgarh and will help bridge the gap between demand and supply in western parts of the country. The third project is in Gujarat, said Bansal.
When asked about the second round of fare hike, Bansal refused to give a direct answer but hinted at a possibility. When asked about the increasing railway fares for the second time in view of diesel price hike, Bansal said, ‘Wait for another 19 days.’ Sources in the ministry said that the second round of fare hike could be part of the railway budget document which will be presented in parliament on 26 February.
With the recent increase in diesel prices, Bansal did not discard the possibility of rail fare hike. In fact he noted that this had caused an additional burden of Rs 3,300 crore on railways. ‘We were expecting Rs 6,600 crore after the recent passenger fare hike. But the Rs 10.80 per litre diesel hike would cost the railways Rs 3,300 crore a year,’ he said. Sources said that this could mean that the government was actively considering ways and means to mop up this deficit and fare hike was an option.
‘Fund is required for laying new lines, development of stations and for ongoing projects. Fare is one source but funds can be garnered from other non-traffic avenues which we are exploring,’ the minister said. Earlier this year, on 9 January, Bansal had announced a hike in railway passenger fares after a decade. The increased fares were implemented from midnight of 21 January this year. At that time Bansal had said the ministry expected to garner Rs 6,600 crore from the fare increase.
Bansal also said that the Cabinet has approved three projects for setting up new rail lines in Chhattisgarh and Gujarat. The Cabinet Committee on Economic Affairs on Thursday approved new rail line projects worth over Rs 2,300 crore in which two projects are in the virgin coal belt in Chhattisgarh and will help bridge the gap between demand and supply in western parts of the country. The third project is in Gujarat, said Bansal.
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