The government has increased the railway passenger fare by 14.2 percent and the freight charges have been increased by 6.5 percent, which will be effective from today. The railway board has decided to increase the charges just ahead of the budget.
A senior Railway Ministry
official said “The hike in both passenger and freight fares are
inevitable as the financial position of railways is not so good.
However, the quantum of hike is yet to be finalized.”
The railway is hoped to
garner Rs 8000 crore through the increase in passenger fares and
freight charges, as reported by Zee News.
The NDA government is
justifying this fare saying that 'UPA government had proposed this
hike actually and the NDA govt is just implementing it.
Currently, Railways is
facing severe financial crunch with passenger subsidy touching Rs
26,000 crores. Earlier Railways had announced the hike on May 16, but
had immediately rolled back the decision.