Railways proposes fuel, fare tie-up

“What we are working out is an automatic increase in passenger fare with the rise in fuel price,” Union Railway Minister Dinesh Trivedi said here at a press conference. He gave no timeframe to initiate the new fare revision system, but given the Railways’ parlous finances, thanks to no revision in fares for the last seven years.

Passenger fares have not seen any increase since the days of Lalu Prasad as a railway minister in 2004. His successor Mamata Banerjee did not raise the fares for the two years she headed the ministry, but after moving out of the ministry she seems to have given a go-ahead to the idea of “rationalisation” of fare to her party colleague Trivedi. In any case, the question of fare revision could not be put off for long, considering the steep hike in air travel fares.

Fare break-up
The proposal envisages rise in fares whenever prices of diesel and electricity go up. The tickets will show the fare break-up, with the fuel cost component appearing separately on the ticket. According to railway officials, the fuel cost constitutes about 30 per cent of the passenger fare.

Trivedi gave no timeframe for the introduction of the new fare revision system, adding that there would be a public debate before a decision was taken.
He said Railways could not bear the burden of frequent rise in fuel prices and electricity indefinitely. “There has been an increase of 50 percent in the fuel prices, but no increase in the passenger fare,” he explained.

The railway unions, All India Railwaymen’s Federation (AIRF) and National Federation of Indian Railwaymen (NIRF) together representing the 14 lakh railway employees in the country, had in September argued for a fare revision, expressing apprehension that the railways could go bankrupt like Air India, if there was no fare rationalisation. AIRF had argued for 20 per cent increase in fare and tying of the fares to fuel prices.

Variable hikes
The railway minister indicated introducing a new pattern of categorisation of passengers similar to one in vogue in the air travel sector. It is likely to have business and tourist categories besides the category of common passengers. “Passengers of business and tourist class can afford an increased fare, while common passengers traveling to meet their kin during festivals cannot. Those who can afford to pay should pay,”asserted the minister.

Trivedi had spoken of rationalisation of passenger fare and hinted at introducing dynamic fare on the lines of air travel last month. He had also indicated such fare pricing for upper class passengers of trains like Rajdhani, Shatabdi and Duranto.
 “Those who travel on routes like Surat-Mumbai are in a position to pay more,” said the Railway Minister. The railway minister on Friday also hinted at introducing a new pattern of freight charges.