Union Goverment in dilemma over railway fare hike

New Delhi: The Railways is caught in a dilemma whether to go ahead with the passenger fare hike or not, which was put on hold last mon-th after the 2014 Lok Sabha verdict was declared, amid significant decrease in number of passengers travelled in trains during April-May this year.

The NDA government is yet to take a call on 10 per cent passenger and freight fare hike besides the Fuel Adjustment Cost (FAC), which too has to come in effect as part of the policy decision of the previous government.

Union minister of railways Sadanand Gauda has held meetings with the Rail Board members on the issue of the FAC linked fare hike but is said not to have made any decision yet in going ahead with effecting the passenger and freight fare hike.

There has been a slump of over 18 million in April-May in the number of passengers for short distances.

Out of 18.21 million loss of passengers in April-May compared to the same period last year, the suburban trains alone account for a decrease of 16.69 million passengers in two months period.

Railways sub-urban trains in Mumbai and Chennai give the railways robust revenue due to scale of passengers traveling through local trains. With the inauguration of the Mumbai Metro services and similar network set to become operations in Chennai, the railways is expecting further shift of passengers to alternative mode of transport.