NEW DELHI: The Planning Commission has asked the Railways to substantially increase its short distance fare to earn higher revenues, instead of the Government subsidising the cost. The Railways has been charging 20-25 paise a km, as against 40-60 paise collected by road transporters, putting the subsidy burden on the Government. The low fare also militates against the equity concept, and is a hurdle to induction of efficiencies in the Railways, B.N. Puri, Adviser, Planning Commission, said on Thursday.

A sub-group was constituted in the Commission to suggest ways of creating logistics hubs for the Government to know about future traffic flows as also help it frame an integrated transport policy. Its recommendations were expected within a month, to make allocations proportionately and equitably for the development of road, rail and air transport.

The Commission also commissioned a study by RITES to appraise it of the future needs of the domestic transportation sector for making investment allocations.

Mr. Purisaid the transport sector lacked direction and efforts were being made to make it sustain the increasing growth expectations of a booming economy.

He was inaugurating a conference organised here by the ASSOCHAM on `Energy efficiency in transportation sector.'

Its energy efficiency was going down with rising consumption and that was why an integrated development of the transport system was urgently called for, said Mr. Puri.

V.K. Bhargava, director, Petroleum Conservation Research Association, said it had sponsored four projects on petrol/diesel saving on roads by the Central Road Research Institute (CRRI) and the Indian Institute of Petroleum (IIP). The CRRI research project suggested measures to decongest Paharganj road traffic near the New Delhi railway station and thus save up to fuel costing Rs. 3 crore annually.

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