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NDA allies balk at rail fare hike, Centre unmoved

Local train fares in Mumbai, used by 75 lakh commuters every day, will be double from tomorrow

Mumbai: BJP, Shiv Sena MPS from Maharastra met the Railway minister D.V. Sadananda Gowda to discuss the increase in the railway fares in the state. They met with the agenda of seeking a reduction in Mumbai suburban rail fares.

Fares of local trains in Mumbai, used by some 75 lakh commuters every day, will double after the 14.4 per cent increase announced on Friday, the first major fare hike in over a decade.

On Monday, the Shiv Sena likened the decision to "running over the common man with a train" and said the hike should be cancelled or partially rolled back. The Sena has 18 parliamentarians and one minister in the union government.

Youth Congress activists shout slogans during a protest against proposed rail fare hike in Mumbai on Saturday (Source: AP)

The government on Friday served a “bitter pill” by announcing a 14.2 per cent rail passenger fare hike, along with a 6.5 per cent raise in freight charges. The hike will come into effect from June 25 and is in line with Prime Minister Narendra Modi’s statement last week of taking “unpopular” decisions to revive the economy.

The passenger and freight fare hike was announced on May 16, the day of the Lok Sabha results, but was put on hold within hours, apparently to allow the new government at the Centre to take a call.

The Railways hopes to collect Rs 8,000 crore a year with the increase in passenger and freight fares. During April-December (2013-14), the railways incurred a loss of Rs 4,000 crore due to low passenger fares and an additional loss of Rs 883 crore in the freight segment, sources said.

The Railways was incurring a daily loss of Rs 36 crore after the decision to hike fares was put on hold last month. The decision to go for a pre-Budget hike was taken after a meeting of railways minister Sadanand Gowda with finance minister Arun Jaitley and given the go-ahead by the PM.

( Source : dc )
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