Two per cent train fare hike from Monday

New Delhi, 6 October 2013

Travelling by train will become costlier from tomorrow with the revised fare structure coming into effect. Railways has increased the fare by about 2 per cent for all classes, including Sleeper and AC, from Monday. The revised fares will also apply to tickets issued in advance for journey to commence on or after October 7. However, there is no increase in the second class tickets in suburban trains and monthly season tickets.

Facing an additional burden of about Rs. 1,200 crore due to the increased diesel and electricity cost, Railways has decided to revise the passenger and freight tariff, linking it with fuel adjustment component (FAC). The introduction of FAC in the passenger and freight tariff was proposed by former Railway Minister Dinesh Trivedi in the Rail Budget 2012-13.

The 2 per cent passenger fare hike, second time in a year, would come into effect from October 7, while a similar hike of about 1.7 per cent in freight would come into effect from October 10 under the FAC.In the passenger service, Railways had increased the fare by about 15 per cent on January 22 before the Rail Budget 2013-14.

“The decision to revise tariff was taken due to the increased cost of input in the last six months. There has been an increase of 7.3 per cent in the fuel charge, while electricity cost has gone up by 15.5 per cent,” a senior Railway Ministry official said. Railways had earlier hiked the FAC-linked freight tariff by 5.7 per cent in April, followed by the busy season charge by 15 per cent from October 1. The hike in passenger and freight tariff would help Railways mop up about Rs. 1,250 crore in the last six months of the current fiscal, the official said.