New Delhi: The government on Friday served a “bitter pill” by announcing a 14.2 per cent rail passenger fare hike, along with a 6.5 per cent raise in freight charges. The hike will come into effect from June 25 and is in line with Prime Minister Narendra Modi’s statement last week of taking “unpopular” decisions to revive the economy.
The passenger and freight fare hike was announced on May 16, the day of the Lok Sabha results, but was put on hold within hours, apparently to allow the new government at the Centre to take a call.
Also Read: Opposition parties slam rail fare hike, question timing of decision
The Railways hopes to collect Rs 8,000 crore a year with the increase in passenger and freight fares. During April-December (2013-14), the railways incurred a loss of Rs 4,000 crore due to low passenger fares and an additional loss of Rs 883 crore in the freight segment, sources said.
The Railways was incurring a daily loss of Rs 36 crore after the decision to hike fares was put on hold last month. The decision to go for a pre-Budget hike was taken after a meeting of railways minister Sadanand Gowda with finance minister Arun Jaitley and given the go-ahead by the PM.
People react
14.2% is too high
This hike will put a burden on the middle-class, especially those who have to travel regularly. I don’t find the 14.2 per cent justified. It could have been less than 10 per cent. It is agreeable when it is about contributing to the economy of the country, but not when it hits the common people who cannot afford it.
— Radha Subramanyam, Retired teacher
It will help economy
It is considered a safe move by a new government to enforce tough, even unpopular decisions in the first year of its term to streamline the economy and its control over the levers of governance. Narendra Modi does not seem to be too worried about negative fallouts with his decisions, beginning with the political ones he has been taking in the last few days. Rail fare hike is a contentious, political action, which has quite often been postponed or avoided in the past by Railway ministers, from Laloo Prasad Yadav to Mamata Banerjee, to cater to populist sentiments. If this move helps the economy which is already in distress, it should be welcomed.
— K. Naresh Kumar, Director, Bharatiya Vidya Bhavan College of Communication and Management (BCCM)
Move is welcome
This is a welcome step. I cannot imagine any service, including public utilities such as electricity, where rates have not been increased in 10 years. While a 14 per cent hike seems high, in actual terms the impact is unlikely to be very high for passengers. A fare of Rs 252 in 2004, even at normal inflation rates, would be `582 today. But even after the 14 per cent increase, it will only be Rs 287 for a 577-km journey. We demand better facilities and safe operations. All of that requires funds and while I support the fare hike, I do hope it will be used effectively for the right outcomes
— Vinay Chousalkar, CEO, 23.4 Degrees Education Services Pvt. Ltd
I would prefer taking flights that are cheaper
I would like to co-operate with the government’s decision by paying an extra buck if it is going to help the country’s economy. But when there are flights like Air Asia, that can be cheaper when compared to the 3rd or 2nd AC train tickets, I would certainly prefer taking a flight rather than a train which is time saving too.
— Monica Rajendran, Music student
Poor will struggle
The hike is a big one. One which the lower middle-class people will not be able to afford. In fact, they were already struggling with the rates. At least for the general and sleeper classes, the rates should not have been increased.
— P. Brahma, Technical engineer
