Panel on Railways steers clear of fare hike

It has called for creating a ‘Modernisation Fund’ and one of the recommendations to bridge the funds gap is to divest Indian Railways’ stakes in its own PSUs during the 12th Five-Year Plan period.

During discussions with the Planning Commission last month,the committee is learnt to have considered going for an increase in passenger fares,but that has been removed in the final report and a surcharge for modernisation has been included.

Unlike the Anil Kakodkar committee report,which sought a ‘Safety Fund’ by levying a “safety cess” on passengers,the Sam Pitroda report does not mention any amount the surcharge is expected to mop up.

Not calling for a fare hike straightaway while recommending a “surcharge”— which,if applied,could mean an increase in the passenger fares in a roundabout way — is being seen as a move to preempt any political backlash.

Terming the committee’s report a “doctor’s prescription to save an ailing patient”,Railway Minister Dinesh Trivedi,however,clarified there was no way of privatising any part of the Railways. “There are various ways of funding the modernisation process. The report has not talked about fares,” Trivedi said.

According to the Pitroda committee,the Railways needs a total of Rs 5.6 lakh crore in the next five years for all recommended modernisation initiatives.

Pitroda said the Railway Ministry will not be able to fund the massive upgrade job on its own. “It requires participation from the government as well. But Railways needs to generate its own resources too.”