Even unions speak the unspeakable: need to hike railway fares

“Rationalisation of fares needs to be done. A train journey that costs Rs 5 would cost Rs 60 by bus. We recently raised the matter in a conference of railway general managers. We have written to the minister and Railway Board chairman that it is essential to rationalise fares. Else,we run the risk of facing a situation which Air India is facing,” said AIRF general secretary Shiv Gopal Mishra.

Mishra said fares should be raised 20 per cent in all reserved classes,the fare subsidy provided by the Railways should be reimbursed in the general budget,and a fuel surcharge pegged to the cost of fuel should be introduced.

“Railways are running the serious risk of collapse. If that were to happen,the poorest of the poor would lose the most,” Mishra said.

NFIR general secretary M Raghavaiah echoed Mishra.

“Travel on Indian Railways is the cheapest in the world. Concessions are leading to annual losses of Rs 15,000 crore. Passenger fares have not been revised in the past eight rail budgets. We are of the view that a 30-40 per cent hike in all classes of passenger fares should be made,” Raghavaiah said.

Last month,members of the Consultative Committee on Railways advocated raising fares “within reasonable limits to offset the inflationary trend and diesel price increase etc. and to plough back resources raised for the benefit of passengers and improvement in railway system”.

The Railways lost close to Rs 48,000 crore between 2003-04 and 2008-09 on passenger business. Hauling a passenger train over a kilometre costs around Rs 551; the per-km earning is only around Rs 412.