Passenger fare hikes recommended by expert panel
December 31, 2014
New Delhi
Hike in passenger train fares, particularly in suburban service, and increase in the minimum distance to be covered in passenger and express trains have been recommended by an official committee in its report submitted to Railways.
The D K Mittal Committee, formed on December 4 this year to suggest ways and means to raise the revenue of Indian Railways, has recommended that the minimum distance of travel in passenger train should be increased from existing 10km to 20km and in mail/express segment it should be increased from 50km to 100km.
Currently, even if a passenger travels less than 10 km he is charged for the 10km in a passenger train and 50km in mail/express trains.
The expert panel has observed that the current suburban fares is 60 per cent less than road travel cost and emphasised the need for increasing fares in a gradual manner.
The committee has also suggested that railway PSUs should be given the task to execute the rail projects. “The PSUs should be given a free hand to raise funds from the banks and after completion of the projects, they would be handed over to railways,” said a senior Railway Ministry official who was privy to the report.
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