M A I N   N E W S

TRACKING RAILWAY BUDGET-2014
Fuel price-linked fare hike to continue
Girja Shankar Kaura
Tribune News Service

New Delhi, July 8
Toeing the proposal brought out by the previous Congress-led UPA government of linking the passenger fares to the hike or fall in the fuel costs, Railway Minister Sadananda Gowda today made it clear that the Railways would continue with the fuel adjustment component (FAC) to revise the passenger fares every six months.

After presenting his maiden Rail Budget, Gowda said: "We will continue with FAC which was there in 2013-14 also. There will be a periodic hike once in six months. That was taking place earlier also. This will continue."

Justifying the FDI proposal, Gowda said: "We need huge investment to run bullet trains. There was a ban on FDI in Railways. Now we would request the Commerce Ministry to delete that clause so that there can be FDI in infrastructure development."

FDI will not be allowed in core operational areas, he said, adding these areas would remain with the Railways.

On whether there would be any cap on FDI, Gowda said: "The Cabinet has to take a call and then we will discuss it with the Prime Minister and Cabinet colleagues before taking a decision."

Clarifying on public-private partnership, he said the policies had to be changed. "Private players have no faith. They feel if you invest in Railways there will be no returns. We will have to change certain policies to attract private players," he said.

On the issue of setting up a Rail Tariff Authority (RTA), he said: "We are looking at it and studying how it has to be done."

Meanwhile, in his Budget, the minister said special milk tanker trains and temperature-controlled facilities for movement of fruit and vegetables would be introduced as the government focused on improving supply of food items against the backdrop of price rise.

"I proposed to give a boost to movement of fruit and vegetables in partnership with the Central Railside Warehousing Corporation (CRWC) by providing requisite facilities of temperature-controlled facilities at 10 locations," Gowda said, adding that the Railways would also facilitate transportation of milk through rail by providing special train tanker and trains in association with National Dairy Development Board and cooperative Amul.