Dinesh Trivedi on Wednesday became the first railway minister in nine years to introduce a fare hike across the board while presenting the annual railway budget.
Dinesh Trivedi on Wednesday became the first railway minister in nine years to introduce a fare hike across the board while presenting the annual railway budget.
Trivedi’s audacious move sparked off a major political crisis in the UPA government with the Trinamool Congress, its principal ally, demanding a rollback in the proposed fares. Will the government give in or go ahead with the increased fare will become clear in the coming days but Trivedi appeared firm in pulling the railways out of the “Intensive Care Unit”. By the end of the budget presentation it was clear that
Trivedi was not toeing his party boss Mamata Banerjee’s line of “Maa, Mati and Manush”.
The raise will bring in an additional revenue of almost Rs7,000 crore annually. Trivedi also sought to free the railways of political clutches — which normally results in populist steps at the cost of revenue — by forming an independent Railway Tariff Regulatory Authority that will recommend freight and passenger fares. Such a body will prevent future railway ministers from implementing politically convenient schemes.
The minister proposed to increase sleeper class fare by three paise per passenger per kilometre, AC chair car by 10 paise, AC three-tier by 10 paise, AC two-tier by 15 paise, and AC First-Class by 30 paise.
“We have to pull the railways out of the ICU and make it healthy,” Trivedi said. “How much can I subsidise to the world? I have got limited money.” He proposed to increase second class (suburban) fares by two paise per passenger per kilometre. For second class (mail/express), it is three paise per passenger per kilometre.
The passenger fare hike, along with growth in traffic volume in 2012-13, is likely to give the railways a much needed push. Vinay Mittal, chairman of the Railway Board, said this year’s budget, “defines the fact that the railway has become bold enough to recover its cost of operation”. He said this raise would definitely put the railways on the path to recovery. “It will help generate almost Rs6000-7000 crore,” Mittal said.
In view of the several accidents that happened last year, the minister also announced several safety projects. Since 60-70% of the total casualties occurred at unmanned level crossings, the ministry has decided to set up a Special Purpose Vehicle (SPV) — the Rail-Road Grade Separation Corporation of India — to investigate the matter. An independent railway safety authority too would be set up.
Waitlisted passengers will now be accommodated in other trains and AC executive lounges will be set up at important stations. The ministry will also introduce specially designed coaches in mail and express trains for the handicapped.
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