<p>Railway Minister Pawan Kumar Bansal on Wednesday indicated that his ministry was moving closer to raising the railway fares.<br /><br /></p>.<p>The minister told reporters that his ministry was working on setting up a Rail Tariff Authority (RTA) which would suggest the quantum of passenger fare hike after taking into consideration all operational costs like existing diesel and power rates.<br /><br />"The ratio of passenger fare to freight is 0.3:1 in India. In China it is 1.3:1. So you can imagine how low our passenger fares are,” he said. <br /><br />Arguing for the physical and financial health of railways, he said railway revenue was increasing, but cross subsidisation for passengers fares was very high. “...There is a need to do something about it (fare hike). But there are many reasons for not being able to do it. <br />There is a need for depoliticisation of fare hike proposals,” the minister told reporters.<br />Fare for AC Ist and AC 2nd class were raised in the last budget though the others were left untouched</p>
<p>Railway Minister Pawan Kumar Bansal on Wednesday indicated that his ministry was moving closer to raising the railway fares.<br /><br /></p>.<p>The minister told reporters that his ministry was working on setting up a Rail Tariff Authority (RTA) which would suggest the quantum of passenger fare hike after taking into consideration all operational costs like existing diesel and power rates.<br /><br />"The ratio of passenger fare to freight is 0.3:1 in India. In China it is 1.3:1. So you can imagine how low our passenger fares are,” he said. <br /><br />Arguing for the physical and financial health of railways, he said railway revenue was increasing, but cross subsidisation for passengers fares was very high. “...There is a need to do something about it (fare hike). But there are many reasons for not being able to do it. <br />There is a need for depoliticisation of fare hike proposals,” the minister told reporters.<br />Fare for AC Ist and AC 2nd class were raised in the last budget though the others were left untouched</p>
