Railways to revise passenger fares in Oct
RAILWAYS & METRO RAIL

Railways to revise passenger fares in Oct

As part of an exercise to introduce a fuel adjustment component (FAC) in passenger segment, the Indian railways would revise passenger fares in October. According to the FAC policy, the freight and passenger rates would be revised twice a year, keeping in mind the proportionate movement in diesel and electricity prices.

Budget 2013-14 had provided for FAC-linked revision of freight rates from April 1. At the National Editors’ Conference on Saturday, Railway Board Chairman Vinay Mittal said that the government insulated the passenger segment from FAC in April, as it didn’t feel it was appropriate, considering there was a fare hike in January.

The railways had to absorb Rs 800 crore on account of this. In the passenger segment, losses rose from Rs 6,159 crore in 2004-05 to Rs 19,964 crore in 2010-11. It was expected this year, these would stand at Rs 25,000 crore.

As part of an exercise to introduce a fuel adjustment component (FAC) in passenger segment, the Indian railways would revise passenger fares in October. According to the FAC policy, the freight and passenger rates would be revised twice a year, keeping in mind the proportionate movement in diesel and electricity prices. Budget 2013-14 had provided for FAC-linked revision of freight rates from April 1. At the National Editors’ Conference on Saturday, Railway Board Chairman Vinay Mittal said that the government insulated the passenger segment from FAC in April, as it didn’t feel it was appropriate, considering there was a fare hike in January. The railways had to absorb Rs 800 crore on account of this. In the passenger segment, losses rose from Rs 6,159 crore in 2004-05 to Rs 19,964 crore in 2010-11. It was expected this year, these would stand at Rs 25,000 crore.

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