STATESMAN NEWS SERVICE
New Delhi, 4 October
The railways have decided to increase passenger fares by about 2 per cent and freight charges by 1.7 per cent from next week to offset the financial burden arising out of increased input cost.
This hike in passenger fares and freight tariffs is linked to fuel adjustment component (FAC). The revised passenger fares will be effective from 7 October. The revised freight tariff will be effective from 10 October.
While the fares of AC and sleeper class will be increased by about 2 per cent, the freight rate will go up by 1.7 per cent as per the government&’s decision.
Anticipated incremental earning from the passenger fare hike would be around Rs 450 crore in the remaining six months of the financial year, while around Rs 700 crore will be garnered from freight hike.
The suburban and non-suburban fares, however, have been left untouched, a press release issued by the railway ministry late this evening said.
The decision on the fresh round of hikes has been taken under the system of FAC about which an announcement was made in the 2011-12 rail budget.
This fare hike is in addition to 15 per cent levy as the busy season charge on all commodities from 1 October.
According to the budget proposal, the fuel component is segregated from tariff as FAC and the railways is expected to revise the passenger and freight tariff after every six months taking into account the input cost and the prevailing market condition.
Railway Minister Mallikarjun Kharge had said yesterday that “fuel adjustment component (FAC) was announced in the budget and as per the budget proposal it should have been implemented from 1 October. The file containing the FAC proposal has come to me and I am examining it and a decision will be taken shortly.” Mr Pawan Kumar Bansal had announced the implementation of FAC-linked revision in only freight tariff.