The Hindu : Front Page : Fares slashed, freight untouched as profits rise

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Wednesday, Feb 27, 2008
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Fares slashed, freight untouched as profits rise

Sandeep Joshi

Railway budget 2008-2009: people-friendly with more trains, more amenities and record outlay

NEW DELHI: Buoyed by the record level of earnings by the Railways, Railway Minister Lalu Prasad on Tuesday announced a reduction in fares in various classes and provided concessions in some categories of freight charges. Presenting his fifth consecutive Railway Budget, Mr. Prasad focused on improving passenger amenities and implementing mega investment plans for building railway infrastructure, besides announcing 53 new trains, including 10 ‘Garib Raths.’

Living up to the expectations of rail travellers, Mr. Prasad announced a five per cent reduction on second class fares beyond Rs. 50 on all categories of trains, while a Re.1 discount will be given on fares up to Rs. 50. Similarly, the fares for AC-I will be reduced by seven per cent and AC-II fares by four per cent. However, for popular trains and during peak period, the reduction will only be half as in previous years.

Keeping in mind the increased capacity of the newly designed AC-III tier and AC chair car coaches, Mr. Prasad reduced its fares by two per cent. However, the reduction will only be half for fares of popular trains. “With this, the rationalisation of AC class fares has now been completed,” Mr. Prasad said in his budget speech that was marred by protests from Opposition Members of Parliament.

The Minister enhanced senior citizen fare concession for women to 50 per cent from the existing 30 per cent, besides giving a 50 per cent rebate in second class fares to AIDS patients. Similarly, free monthly passes will be given to girl students up to graduation level in place of 12th standard and to boys up to 12th standard instead of 10th standard.

Mr. Prasad said Ashok Chakra awardees would now be provided the facility of passes for travelling in AC-II tier along with one companion in Rajdhani and Shatabdi trains also, as being availed of by Param Vir Chakra, Mahavir Chakra and Vir Chakra awardees.

In the freight business, Mr. Prasad announced a five per cent reduction in rates for petrol and diesel, and 14 per cent reduction for fly ash. Besides liberalising ‘traditional empty flow’ direction incentive scheme by giving additional discount, he announced a six per cent concession for traffic booked from other States for stations in the north-east.

To cater to the needs of people living in various States, the Minister announced the introduction of 53 new trains, with maximum number of new trains going to Bihar. The frequency of 11 pairs of trains will be increased, while extension will be granted to 16 trains. To give boost to Mumbai suburban trains, 300 additional services will be started.

Mr. Prasad said provision of on-line coach indication display boards and on-line train arrival departure information boards will be made, while discharge-free green toilets in all 36,000 coaches will be done in the XI Plan period at a cost of about Rs. 4,000 crore.

He announced the setting up of a new rail coach factory in Kerala and a new wagon re-construction unit in Chapra district of Bihar.

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Well done, Railways

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