The Hindu : Front Page : Passenger fares cut across the board

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Saturday, Feb 14, 2009
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Passenger fares cut across the board

Special Correspondent

Policy of tying freight to market conditions stays

NEW DELHI: No major policy decisions, largesse aplenty, a two per cent across the board reduction in fares and Laluisms marked the United Progressive Alliance’s last Railway Budget presented in Parliament on Friday.

Travelling by ordinary trains will become cheaper with a Re. 1 cut in the fare price for journey beyond 10 km. but only on tickets costing up to Rs. 50. The cut would not be applicable for second class rail journey up to 10 km for the reason that the fare for covering the distance was already Re. 1 only.

The token cut in prices of passenger fares by two per cent has been extended to second class, sleeper class, AC first class, AC 2 tier, AC 3 tier and AC chair car on tickets costing more than Rs. 50.

During the last four years Railway Minister Lalu Prasad reduced AC first class fares by 28 per cent and AC two tier by 20 per cent and by Rs. 4 on tickets costing up to Rs. 50.

The financial impact of the decision would mean forgoing revenue to the tune of Rs. 700 crore in 2009-10.

The Railway Minister did not touch on freight charges retaining the dynamic policy to fix rates in accordance with market conditions.

High-speed bullet trains are set to be introduced in the days to come. Feasibility studies are underway to operate them on at least six sections and a report in the case of at least one route was under scrutiny.

During the next financial year, the railways intend to start 43 new train services, extend the services of 14 trains and the frequency of as many trains in a bid to please almost all States, particularly Bihar. Surveys would be taken up for laying 14 new lines, conversion of gauge of three routes and doubling of eight lines.

While desisting from announcing any new project, Mr. Prasad promised to take over the wagon units of Burn Standard located at Burnpur and Howrah in West Bengal besides undertaking the Kolkata Metro extension work for which the West Bengal government has agreed to contribute 50 per cent of the cost.

Even though he presented the estimated receipts and expenditures for the entire 2009-10 financial year, Mr. Prasad sought a vote on account for only four months leaving the task of formulating the new policy to the new government. Mr. Prasad intends to leave the coffers with a robust fund surplus of Rs. 90,000 crore by the end of his tenure.

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