Rail passenger fare hiked by 14.2 per cent

avi

avi

Skilled
NEW DELHI: In an unpopular decision, railway passenger fare was today increased by 14.2 per cent in all classes while freight charge was hiked by 6.5 per cent with effect from June 25.

The decision of the Railways today restores an announcement of May 16, the day Lok Sabha election results came, when the same hike was effected but immediately put on hold.

The Railways had then issued a notification effecting hike in passenger fare by 14.2 per cent across the board and freight charges by 6.5 per cent from May 20. This was followed up with an official press release.

The May 16 fare hike decision, which had raised eyebrows as it came in the midst of Lok Sabha election results, led to a scurry of activities in Rail Bhawan on that day and the Railway Board went into a huddle to discuss its fallout.

Soon after, the red-faced Railway Ministry had put the decision on hold, saying the matter related to the revision will be left to the next government.

The then Railway Minister Mallikarjun Kharge came out with a statement directing the Board to leave the decision on the hike to the new government.

"It is now informed that under the directions of the Minister of Railways Mallikarjun Kharge, the decision on the proposed hike in the freight charges and passenger fares have been kept pended till further advice for placing this proposal before the new government," the statement said.

A fresh notification was issued later, stating that the "revision of fares with effect from May 20 should be pended till further advice."

While a flat 10 per cent has been announced in all classes, an additional 4.2 per cent increase under fuel adjustment component (FAC)-linked revision scheme will be effected on passenger fares, taking the upper revision of fares to 14.2 per cent, an official said.

The Railways had earlier issued a notification on May 16 effecting hike in passenger fare by 14.2 per cent across the board and freight charges by 6.5 per cent from May 20. This was followed up with an official press release.

The May 16 fare hike decision, which had raised eyebrows as it came in the midst of Lok Sabha election results, led to a scurry of activities in Rail Bhawan on that day and the Railway Board went into a huddle to discuss its fallout.

Soon after, the red-faced Railway Ministry had put the decision on hold, saying the matter related to the revision will be left to the next government.

The then Railway Minister Mallikarjun Kharge came out with a statement directing the Board to leave the decision on the hike to the new government.

"It is now informed that under the directions of the Minister of Railways Mallikarjun Kharge, the decision on the proposed hike in the freight charges and passenger fares have been kept pended till further advice for placing this proposal before the new government," the statement said.

A fresh notification was issued later, stating that the "revision of fares with effect from May 20 should be pended till further advice."

source: http://economictimes.indiatimes.com/articleshow/36890075.cms
 
Hurr durr derp Lord Modiji before elections: Immediately withdraw 20% railway freight hike imposed before rail budget: CM to PM

Gujarat CM sends letter to PM against railway freight fare hike, fourth letter in two week:
“Withdraw immediately 20% hike in Railway freight fare imposed on public just before Railway Budget”: Narendra Modi asks Dr Singh

Gandhinagar, Wednesday: Gujarat Chief Minister Narendra Modi has in a letter to Prime Minister Dr Manmohan Singh today expressed his strong indignation at the Centre’s sudden decision to hike the Railways freight fare by a whopping 20 per cent through backdoor, just a week before the Railway Budget, diminishing the supremacy of the Parliament
Mr. Modi demanded immediate withdrawal of the unnerving hike, as it would cause an unprecedented burden on the common man and indirectly on the nation’s economy.
“Was the Central Government waiting for the results of the elections to five State Assemblies to impose an anti-people and anti-farmer policy?” he pointedly asked Dr. Singh.
He described the hike highly unjustified since the prices of a number of commodities, are already ruling at a much higher level than people’s tolerance limits. The freight rationalization would entail a jerk of Rs350 per tonne on food grains and fertilizers. The decision also reflects huge communication gap between the Ministries of Railway, Energy, Coal and Environment. This is despite the Prime Minister’s constituting a high-level committee for coordination.
Mr. Modi said that Gujarat will be most hit on the coal front, because the coalfields are far away. He said that rise in railway freight fare since 2006 has caused an additional burden of Rs.19,000-crore on Gujarat, on just one commodity. The latest hike would coast another Rs.300-crore on power generation.
The Chief Minister recalled that he had in a letter sent to the Prime Minister on February 11, 2008 pointed out that Gujarat got only nine lakh tonnes of coal through coal linkages from Western Coalfields, and the rest from farther away Southeastern Coalfields of inferior quality at higher prices, as against an annual requirement of 174-lakh tonnes. Instead of solving the problem all these year, he regretted, the Centre has been increasing the coal and prices as well as railway freight.

source: http://www.narendramodi.in/“withdra...ublic-just-before-railway-budget”-cm-asks-pm/
 
I have been checking the news regarding the hike and one of the former minister said this - KACCHEY DIN AANEY WAALEY HAI . This is not the hike what most people had expected . Who wants to pay a dearer amount for basic amenities.
 
5-6% would have been okay. I understand Railways are in bad shape, But seriously 14% hike? Not impressed.:shifty:
Common man is already fed up of inflation and now this.. Don't really understand what are NaMo's motives?
 
avi said:
^you forgot the freight charge hike. it will make a lot lot worse.
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What products are transported through trains?[DOUBLEPOST=1403283617][/DOUBLEPOST]I think Hike was inevitable but they should have done in two phases may be now and a year later.
 
Coal is transported to the thermal power plants. This hike plus increase in gas prices by reliance and other gas producing companies will push up electric rates by 2-4 rupees per unit. If you're paying 6 now expect it to jump to 8-9 in coming few months.
Plus goods imported from ports travel through train, etc. Diesel, petrol, lpg is transported through train to states. Expect prices of everything to go up.
 
What @avi meant was that now, with the increase in freight charges, lesser goods would be transported through trains. And those that have to be transported, the prices would increase. Look at petroleum products.

As for the hike, dunno. The Railways should get out of the deficit soon. Got fed up of the Arnab debate on TV and changed the channel :p
 
I don't understand the fuss behind passenger rates being hiked.
It's long overdue, heck even my laundry guy (a chap from UP who probably travels around 3-4 times a year to his native) thinks so!

As for freight rates, when were they last raised?
Railways is a PSU alright but profits and expenditure for modernization is still a necessity. Where are the funds going to come from if fares are kept the same!
 
I don't care about fare hike but Govt. should keep extra charges in IRCTC ticket booking website in limit and should reduce ticket cancellation charges. In that way we would be able to save lots of money.
No one is talks about these charges because these charges are not even considered as rail fare but still making hole in our pockets.:(
 
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Aside from BJP's hypocrisy, railway fares needed to be hiked. There has been 2 hikes since 1999 (1 by Dinesh Trivedi was rolled back) - a total of 2 in 15years. The prices have not kept the same pace as the increasing cost of goods and labour to the railways. So its kind of amazing when people expect great service at a price from 2000s decade and then in the same breath pan government for spending money on populist schemes.

The best part of the whole argument about "give us better services and then give us hike" is that people are responsible for their servicing. I remember travelling last year where people were lamenting the fact that railways was providing such a bad service for the dinner served. There were no "water packets" they said. When I told them that (after a lot of incessant chatter)
1. the guy serving dinner was a contractor and
2. he was obligated to give you "water" and much more if you ask him the "menu"(Indian railways was subsiding the meal based on the menu and if any item was missing citizens had the right to demand for it) and
3. people should stand sometimes stand for their rights(though sadly this should happen automatically but it doesn't) and not blame the government for everything .
It started a small revolution and we got free 2 litre water bottles + extra meal items instead of 2rs water packets.
 
What I find really unusual is the fact that when the railway budget is in the first week of July, what was the hurry ??

On the positive note, this alongwith the power situation in Delhi will put BJP in backfoot. Hope AAP gets a majority in the next polls.
 
My native place is approx 850 KMs from Mumbai. I do not recollect paying more than Rs.350 for a sleeper class ticket since my school days. IMO, hike is justified. There is similar hike in suburban monthly pass for Mumbai city. A general class pass for approx 35 KMs was costing Rs.190/month, which is about Rs.6/day, in which holder can travel to-and-fro as many times as possible. OTOH for same distance if one buys ticket which is valid for single time to-and-fro, costs approx Rs.30/day or 900/month, resulting season pass to be cheaper by 80%. Now this is hiked to Rs.480 for same season pass, once again IMO, it is justified.

Hikes are appearing steep because they have not been revised for long duration, though suburban hike is another story or point to discuss.

One point which authorities can put in place is not passing this hike to senior citizens or may be moderately passing.
 
I read in the newspaper today that Railway fares were unchanged between 2004 and Oct 2013.
Even Kolkata Metro fares remained unchanged for the same period. Due to this, surface transportation fares were 2 times that of the Metro causing overcrowding. (Bus fares are still quite low in Kolkata). After the fare hike, the Metro crowd thinned a bit and people can travel like human beings now.

Train fares should be allowed to be changed based on economics rather than populism.
This will enable the Indian Railways to become self sufficient and fund their technological advancements/maintenance work. If the government does not have to give funds to the Railways, it can spend the money on 100 days work schemes or the like.
 
vyral_143 said:
My native place is approx 850 KMs from Mumbai. I do not recollect paying more than Rs.350 for a sleeper class ticket since my school days. IMO, hike is justified. There is similar hike in suburban monthly pass for Mumbai city. A general class pass for approx 35 KMs was costing Rs.190/month, which is about Rs.6/day, in which holder can travel to-and-fro as many times as possible. OTOH for same distance if one buys ticket which is valid for single time to-and-fro, costs approx Rs.30/day or 900/month, resulting season pass to be cheaper by 80%. Now this is hiked to Rs.480 for same season pass, once again IMO, it is justified.
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+1 to that. I frequently travel to and from the capital of my state which is about 225km from my place for which I've to pay Rs.70(General class). You won't believe i pay almost same amount or even high at late night to the Rickshawwallah for getting me home from Railway station which is hardly 5km. Railway is the cheapest medium of journey in our country and i believe the fare hike is justified. But the increased revenue must be spent back for the improvement of QoS for passengers.
 
vyral_143 said:
My native place is approx 850 KMs from Mumbai. I do not recollect paying more than Rs.350 for a sleeper class ticket since my school days. IMO, hike is justified. There is similar hike in suburban monthly pass for Mumbai city. A general class pass for approx 35 KMs was costing Rs.190/month, which is about Rs.6/day, in which holder can travel to-and-fro as many times as possible. OTOH for same distance if one buys ticket which is valid for single time to-and-fro, costs approx Rs.30/day or 900/month, resulting season pass to be cheaper by 80%. Now this is hiked to Rs.480 for same season pass, once again IMO, it is justified.

Hikes are appearing steep because they have not been revised for long duration, though suburban hike is another story or point to discuss.

One point which authorities can put in place is not passing this hike to senior citizens or may be moderately passing.
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Wrong! This is the third rise in the period of one year. While it is true that main fare was not increased in 10 years, there was a heavy increase in reservation charges, superfast charges & cancellation charges last year. Then 4% diesel surcharge was added followed by charging of service tax on tickets. And then the rounding off to denominations of Rs. 5 such that a person paying Rs.21 would now have to pay Rs.25.
I remember paying Rs 200 & Rs. 220 from Bhubaneswar to TATA in Utkal & Purushottam Exp. respectively a year ago. Now it costs Rs. 235 & Rs 265 respectively before the current hike comes into effect.
When the rail budget is on 7th of next month, why the hurry ??
 
I completely support the hike. If there is no hike, we are anyways going to pay for the deficit indirectly. Now its direct.
I am sure that in next 1-2 years, the railways would be in green and then the govt can sale components of it to the private sector at a profit.
Tough decision, but necessary.
 
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