M A I N   N E W S

Railways likely to hike passenger fares by 2%
Girja Shankar Kaura/TNS

New Delhi, October 4
Passenger fares in the premium classes are likely to go up with the Railways mulling about two per cent hike from next week. 

With Railway Minister Mallikarjun Kharge having indicated yesterday that another round of hike in railway fares was in the offing based on the fuel adjustment component (FAC), reports suggested that passenger fares in the premium segment may also see an increase.

Freight charges are also expected to be increased by 1.5 to two per cent again to offset the financial burden arising out of increased input cost. The Railways is expected to mop up about Rs 1,250 crore from the hike in the last six months of the current fiscal. The suburban and non-suburban fares would, however, remain untouched. The ministry has taken into account the additional burden of 7.3% increase in diesel price and about 15% in electricity rates. Passenger fares were revised in January last.

The Railways has imposed 15% levy as the busy season charge on all commodities from October 1 and the FAC-linked revision is likely to take effect from October 10.

According to the budget proposal, the fuel component is segregated from tariff as FAC. The Railways is expected to revise the passenger and freight tariff in every six-month after taking into account the input cost and the prevailing market condition.