Press Esc to close

Rail fare hike proposal under examination: Kharge

New Delhi, Oct 3, 2013 (PTI) 15:22 IST
Railway Minister Mallikarjun Kharge
A proposal to increase rail fare is under examination and a decision will be taken shortly, Railway Minister Mallikarjun Kharge today said.

"Fuel adjustment component (FAC) was announced in the budget and as per the budget proposal it should have been implemented from October 1. The file containing the FAC proposal has come to me and I am examining it and a decision will be taken shortly," Kharge said at the sidelines of a function here.

To repeated queries whether there will be a FAC-linked revision in passenger and freight tariff in near future to reduce the losses in passenger segment, Kharge did not rule out the possibility of any increase and only said, "I am examining it. As soon as we arrive at some conclusions, then we will decide on it."

According to the budget proposal, the fuel component is segregated from tariff as FAC. Railways is expected to revise the passenger and freight tariff in every six-month after taking into account the input cost and the prevailing market condition.

According to the calculation, railways will have to bear a burden of Rs 1,200 crore due to increased energy and input cost in the next six month. The cross-subsidy for passenger service is currently touching Rs 26,000 crore in a year.

The then Railway Minister Pawan Kumar Bansal had announced the implementation of FAC-linked revision in only freight tariff from April 1. As regards to passenger fare, since it was revised only in January this year, it was not touched then.

Railways had decided not to pass the additional burden of Rs 850 crore because of the fuel hike to the passengers and absorbed it then.

Railways has imposed 15 per cent levy as the busy season charge on all commodities from October 1.

Go to Top

More from this section
Most trending stories
Photo Gallery
Hundreds of vehicles stranded at Jammu-Srinagar national highway as it remained closed...

Hundreds of vehicles stranded at Jammu-Srinagar national highway as it remained closed...

Prime Minister Narendra Modi receiving a memento from FICCI president Pankaj Patel at the 90th...

Prime Minister Narendra Modi receiving a memento from FICCI president Pankaj Patel at the 90th...

Tourists enjoy the weather after a fresh snowfall at Mahasu peak in Kufri near Shimla on Wednesday..

Tourists enjoy the weather after a fresh snowfall at Mahasu peak in Kufri near Shimla on Wednesday..

Prince William, Duke of Cambridge, left, and Prince Harry on the red carpet as they attend...

Prince William, Duke of Cambridge, left, and Prince Harry on the red carpet as they attend...

India's captain Rohit Sharma celebrates his double-century during the second ODI cricket match...

India's captain Rohit Sharma celebrates his double-century during the second ODI cricket match...

A leopard after it fell into a well at Bamungaon in Guwahati on Wednesday....

A leopard after it fell into a well at Bamungaon in Guwahati on Wednesday....

Prime Minister Narendra Modi, former Prime Minister Manmohan Singh, senior BJP leader LK Advani...

Prime Minister Narendra Modi, former Prime Minister Manmohan Singh, senior BJP leader LK Advani...

India's Prime Minister Narendra Modi (C) pays homage to the victims of the December 2001 parliament.

India's Prime Minister Narendra Modi (C) pays homage to the victims of the December 2001 parliament.

Bollywood actress Soha Ali Khan with mother Sharmila Tagore and sister Saba Ali Khan at the launch..

Bollywood actress Soha Ali Khan with mother Sharmila Tagore and sister Saba Ali Khan at the launch..

Sunset in Bengaluru on Wednesday...

Sunset in Bengaluru on Wednesday...

Like us on Facebook

Copyright 2017, The Printers (Mysore) Private Ltd., 75, M.G Road, Post Box 5331, Bengaluru - 560001
Tel: +91 (80) 25880000 Fax No. +91 (80) 25880523
Powered by Yodasoft Technologies Pvt. Ltd.