No Hike In Railway Passenger Fares

NEW DELHI: Railway Minister, Suresh Prabhu,  spared passengers from any hike in fares but made changes in freight rates to increase revenues.

Presenting the first full Rail Budget of the Modi government for 2015-16, he made adjustments in freight rates that exempted salt but would hike rates on carriage of cement, coal and coke, iron and steel, and petroleum products.

The Budget also revised the commodity classification and distance slabs for carriage of commodities that can raise freight rates could go up by up to 10 per cent in some of the items.

The minister did not project any figures that will accrue from of the adjustment in freight rates, which will be effective from April 1 this year.“I have not increased passenger fares. We are directing our efforts to make travel on Indian railways a happy experience with a mix of various initiatives,” he said as he laid out 11 major thrust areas of railways in the coming financial year.

He did not announce any new trains. Instead, he said, the railway is reviewing the capacity to add more trains.

On privatization of the railways, the minister said Railways will continue to be a precious national asset and people of India will own railways always.

In the hour-long speech, Prabhu unveiled the thrust areas as the national carrier to become the prime mover of economy again, resource mobilization for higher investments, decongestion of heavy routes and speeding up of trains, passenger amenities and safety.

Outlining the budget estimates for the coming year, he proposed a plan outlay of 1, 00,011 crore, an increase of 52 per cent over revised estimate of 2014-15. Passenger earnings growth has been pegged at 16.7 per cent and earnings target set at 50,175 crore.

Read More: Railways To Mobilise Rs 17,655cr From Borrowing In 2015-16
Budget Spares Fare Hike, Promises Modern, Global Network