RAILWAY FARE HIKE - WELCOME MOVE

By Ruma Dubey

The much awaited rail fare hike after 10 long years has finally come in. Though there has been a steady murmur of a fare hike, this hike today took most by surprise.  Politics has always prevented all railway ministers, especially Mamata Banerjee from hiking fares even though running trains had become unviable across many sectors. Thus todays fare hike comes as a big relief.

If not for anything else, the current railway minister, Pawan Kumar Bansal will be remembered in history for having the gumption to hike fares after 10 years. One cannot help but recall the drama which Mamata had created after Dinesh Trivedi  had hiked fares and a when she fumed and fussed, he had to quit. He is one minister who will be remembered with respect.

• Currently, fares have been hiked across the board, across all classes.
• 2 paise per kilometre increase in second class ordinary suburban tariffs. 
• Fare for second class non sub-urban travel up by 3 paise per kilometer.
• Fare for of sleeper class hiked by 6 paise per kilometre. 
• Air conditioned (AC) chair car and sleeper class up 10 paise per kilometre.
• AC 2 tier- 15 paise hiked earlier and additional 6 paise at present

This is a very good move as fare hikes had become imperative for restoring railways health. The Railways is currently converting single-track railway to double track and there is gauge conversion too and all this expected to cost Rs.1.5 lakh crore. And if one adds the cost of electrification too, the total bill is for a whopping Rs.4 lakh crore. And with such costs lined up, naturally it has plan its funds or else, we will see the gradual death knell of one of the largest railways networks in the world. As such today, travelling by train has become an ordeal – unhygienic, bad food, lack of security; on all the basic fronts the Railways is currently lagging behind. Hopefully the fare hike will help shore up its service too and the additional money will not go for paying up more salary hikes and bonuses.

At a time when people are paying the sky and the moon sometimes to travel by air within India, if the Railways manages to make train travel comfortable, clean and secure, travelling by train could once again become a pleasurable thing. But there has been o talk of the fare hikes being used to improve cleanliness and security.

Nevertheless, this is a good move and not too much of a hike when compared to how costs on all other front have grown manifold.

The markets were down despite the fare hike as there is fear that this passenger fare hike is a precursor to freight rate hikes and this could once again lead to overall rise in all costs. There is also news that bulk sale of diesel might be done at market price. This could affect the buying price for cement, mine and power companies. This move is being planned to obviously bring down the losses of OMCs. Well, if fiscal deficit is getting to unhealthy levels, surely some tough measures are needed.