Passenger fare hike had become necessary: Railway Board

Passenger fare hike had become necessary: Railway Board

Last Updated: Wednesday, March 14, 2012, 20:53
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Passenger fare hike had become necessary: Railway Board New Delhi: Holding that passenger fare hike had become necessary to balance its budget and strengthen the financial position, the Railways today said the move will fetch the network Rs 6,500 to Rs 7000 crore.

"Between the hike and the projected passenger growth by about 5.4 percent, the amount comes to Rs 6,500 to 7000 crore," Chairman Railway Board Vinay Mittal told reporters.

At his post-budget press meet, Mittal said the hike was a "bold" decision taken by the Railway Minister to "put the Railways back on tracks of financial viability".

"No system can function without having adequate funds and as things work, we would not have been able to balance our budget had the minister not taken the very very bold decision," he said.

Asked about the fuel adjustment component which the minister has talked about in his budget speech, the board chairman said there would be no immediate proposal to put in place this component.

Stating that the pension liability has increased over the years, Mittal said for the present fiscal, it stands at around Rs 18,500 crore while staff cost of the organisation is around 52 percent of its working expenses.

On if the Railways will be rolling back some of its recent hike in freight rate if service tax is implemented, Mittal said that as freight has a dynamic tariff structure, "everything will depend on what the market expects".

First Published: Wednesday, March 14, 2012, 20:53
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Rail fare is necessary becouse for improvment, I would like to say please no politics.
pardeep Bhartia - Jaipur
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