Hike unavoidable: Rail Minister
New Delhi: In one of the biggest hikes, the cash-strapped railways on Friday raised passenger fares by 14.2 per cent for all classes and increased freight rates by 6.5 per cent to garner Rs. 8000 crore annually through the pre-budget decision.
The decision, which will come into effect from June 25 and apply on basic fare, comes nearly a week after Prime Minister Narendra Modi said the country should be ready for ‘tough decisions’.
Due to the hike, a passenger will now have to shell out Rs. 4354 for a journey between Delhi and Kolkata by AC-I on Delhi-Howrah Rajdhani, instead of Rs 3813. Travel by AC-II on the same train will cost Rs 2508 instead of Rs 2197 and by AC-I, it will cost Rs 1728 instead of Rs 1514.
Friday’s decision marks the implementation of an announcement of May 16, the day Lok Labha election results came, when the hike was announced but put on hold immediately.
In a flip-flop, the Ministry first announced that today’s hike will be implemented with immediate effect but later changed it to June 25, saying the officials needed time to execute it.
Announcing the decision, less than a month after the NDA government took over, Railway Minister Sadanand Gowda said, “I was forced to implement the order that was done by my predecessor. I am only withdrawing the withholding order.” (PTI)