Rail passenger fare News

A passenger has to shell out Rs 85, which is less than the cost of one kg of apples, for travelling to Agra from Delhi in the general class, while the Chandigarh fare is Rs 95, lower than the price of one 140 gm toothpaste, according to the fare comparison chart.

"We will have an institutional mechanism which will take into account the efficiency to decide passenger fare and freight rate," Railway Minister Suresh Prabhu said Wednesday.

Railway Minister Suresh Prabhu Thursday said decline in prices of diesel, a major source of fuel for railways, is one of the reasons behind the government's decision not to hike passenger fares.

In 2014-15 (revised estimate), the revenue from movement of goods will rise to Rs 1,06,927 crore from Rs 93,095 crore in the previous year, according to the Rail Budget document.

He said the budget is a watershed moment for the railways, marking a paradigm shift from mere announcement of number of trains to a comprehensive railway reform.

Railway Minister Suresh Prabhu spared passengers from any hike in fares but made changes in freight rates to rake in more money while ruling out privatisation.

Travel by train will be costlier from Wednesday as the recently announced hike of 14.2 per cent in passenger fares will come into effect.

He said the decision was taken by the United Progressive Alliance government in the interim budget in February.

Stating that the choice before the government was to allow the railways to bleed and eventually walk into a debt trap or raise fares, Jaitley said, "India must decide whether it wants a world-class railway or a ramshackled one.

India must decide whether it wants a world-class railway or a ramshackled one, Jaitley added after rail fare hike.

Railway minister has hiked the passenger fares by 14.2 percent effective from midnight tonight.