The Hindu : National : Second class fare down by Re. 1

Online edition of India's National Newspaper
Friday, Aug 12, 2005

National

National

Second class fare down by Re. 1

Special Correspondent

Waitlisted passengers can change train, journey date

Vacant seats to be utilised `Operating ratio of Railways has improved to 91 per cent'

Lalu Prasad ... more sops

NEW DELHI: There will be a reduction of Re. 1 in second class fare for travel by passenger, mail and express trains, Railway Minister Lalu Prasad told the Lok Sabha on Thursday.

He was replying to a debate on the Railway Ministry's Supplementary Demands for Grants for 2005-06 and Excess Demands for Grants for 2002-03. Later in the night the demands were passed by voice vote.

Even as the Minister got up to reply, National Democratic Alliance members walked out.

Mr. Prasad said the Railways was running at an all-time high profit although passenger fare or freight rates had not been touched in the two budgets he presented.

On measures to improve occupancy and earnings, he said it was planned to upgrade passengers to the higher class in case of vacancy on a random basis. "A vacant seat is a lost seat." This proposal was his answer to the Re.1 fare offer from airlines. "With this, we will earn the goodwill of lakhs of passengers. And the Railway will get additional earning from utilisation of vacant seats."

Waitlisted passengers would be allowed to change the date of journey, train and class.

Mr. Prasad announced creation of a permanent forum — the Railway-Industry Coordination Committee — for periodic interaction to facilitate further improvement in rakes availability.

"We have converted a loss-making Railway into a profit-making Railway. Today, we are not only paying the current dividend, but also repaying the deferred dividend." The operating ratio of the Railways improved to 91 per cent and the fund balance went up from Rs. 350 crores to around Rs. 7,800 crores. "It is likely to be at more than Rs. 10,000 crores by the end of the year." The Railways would not have to create another special fund for renewal of its assets now. It was making sufficient provision to the Railway Depreciation Fund and the balance was likely to reach Rs. 5,000 crores by the year-end.

The Minister, who took digs at the NDA for its "poor performance" and attempts to drive a wedge among United Progressive Alliance partners, said the previous government had only one remedy for improving the Railways — increase passenger fares and freight rates.

"Our strategy is to reduce costs and increase trade." The strategy worked. "We have proved it," he said.

The Railways improved wagon turnaround time and plugged leakages, which resulted in its getting freight for only 60 tonnes while carrying 70-80 tonnes.

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