The Indian Railways proposal for hike in train fares has been approved by the Prime Minister’s Office (PMO). However, the new plan is expected to be implemented sometime later this year, around September.
More Details
This move got sanctioned by the PMO after a meeting of the infrastructure ministries which took place in April, 2017. The meeting was held for reviewing the current state and functionalities of the Indian Railways. Getting a green signal on this move from the political masters has always been a challenge for the ministry officials. And this might be a reason why the railway fare hike is feared to have a political backlash.
The meeting also directed that the Railways has to work as “a commercial enterprise with focus on core operations to provide efficient and safe travel while enhancing customer experience”.
A senior Railway official said that the key focus of the new move would be to increase the fares of non-AC classes as they have not been revised since a long time.
Quotes-Unquotes
One section of the Railways officials said “the government was aiming at a “smart play” which involves progressive incremental revision that does not hurt the pockets of the passengers in one go, and does not at once give the impression that a steep hike has taken place — hence the phrase “creeping increase”.
Another set of officers said “ the Rail Development Authority (RDA), the proposed regulatory body that would be in place by the end of this year, might take up the exercise. Even though the RDA does not have the powers to compel the Railways to hike fares, officials said an “advisory” from the regulator will strengthen the case for the hike and may somewhat cushion a backlash”.
