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Union Cabinet clears decks for Railway Fare Authority by riteshexpert on 03 August, 2013 - 08:00 AM
avatar riteshexpert Union Cabinet clears decks for Railway Fare Authority on 03 August, 2013 - 08:00 AM

It will make recommendations on fares and tariff

In what is thought to be a far reaching decision, a separate authority has been cleared by the Union Cabinet on Thursday that will decide on the passenger fares and freight tariffs of the Indian Railways.

Bill

Speaking to presspersons on the sidelines of the function to mark the launch of the Rs. 42.41-crore electrification of the railway line from Wadi Junction to Gulbarga railway station, Union Railway Minister M. Mallikarjun Kharge said a Bill amending Section 30 of the Railways Act would now be placed before Parliament to enable the government to form the Railway Fare Authority. It would have eight members, including the chairman.Asked whether this move would keep the Railways away from fixing passenger fares and freight tariff, Mr. Kharge clarified that the proposed authority would take a decision on hiking the passenger fares and the freight tariff on a regular basis and recommend the same to the government. The government would then take a final decision.

Mr. Kharge said the mounting losses suffered by the Railways have to be contained to save it from collapse. The losses, which stood at Rs. 6,000 crore in 2004 was Rs. 25,000 crore today. If this continued for a few more years, the Indian Railways would be a thing of the past, he said.

He said it was the responsibility of all sections of society to save the Railways and protect the 14 lakh permanent employees, 6 lakh contract labourers working in different parts of the country, including 12 lakh pensioners.

The Railway Fare Authority would have the mandate to increase the passenger fares and freight rates on a scientific basis. Mr. Kharge said the resources generated through passenger fares was only 25 per cent of the total revenue of the Railways, while 67 per cent of the revenue was from the freight rates of transporting industrial goods.

Asked whether there would be any hike in passenger fares and freight tariff, Mr. Kharge said there was no proposal before the government to revise it this year.