Railway Minister Pawan Kumar Banshal has taken a bold step by hiking passenger fares at all levels for the first time in a decade. It may not make him exactly popular but populism is not the answer to the problems of Indian Rail. The increase in revenue will be for investment in passenger safety and sanitary facilities. These are of the utmost importance. The Congress has shown political savvy by taking the belated measure in advance of the pre-election railway budget. Some time ago, the then Trinamul Railway Minister Dinesh Trivedi had to quit for presenting a realistic budget. He had increased passenger fares despite the opposition of her leader Mamata Banerjee. He had said that he could not trust his own family to travel by rail, such was the condition of the Railways. Six months later the Trinamul quit the Union government after the hassle over the Presidential election. The Ministry went to the ruling party after 16 years.
The government has now done what Trivedi thought necessary. The fare hike is a step in the incremental process and will cope with the fact that growth will lead to an escalation of the cost of inputs in the country. Of course, purchasing power will also rise. Passengers should be ready to pay more for better services. The Railways have a separate budget for historical reasons. Trains transported troops and had a national security role during British rule. It is now a PSU and should have the freedom to change policies from year to year. All this is fine. But it cannot be denied that any kind of price rise, especially fare hike at the lower levels will hurt the teeming millions who are not beneficiaries of the rise in purchasing power. The urgent need of growth should go with equity which means removal of the great divide between rich and poor in India.
