Besides, the panel has also observed decline in earnings as against revised estimates in the budget in the last four years from 2007 to 2011.
In its latest report, the Standing Committee on Railways has observed that the then Railway Minister Dinesh Trivedi proposed hike in passenger fares across the board in order to raise financial resources of railways.
New Railway Minister Mukul Roy, however, had announced a roll back of the fare revision in all classes except the premium ones.
The panel headed by DMK MP T R Baalu is of the view that passenger earnings are likely to fall short by about Rs 4,250 crore as the fare hike is now effective only in higher classes.
Though the Committee is quite apprehensive of the earnings of the required level, they have earnestly desired that the Ministry should explore all ways and means to make good the shortfall of Rs 4,250 crore due to roll back in passenger fares.
It has observed that internal resources are much needed not only for improving passenger amenities but also for safety and development.
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The 32-member committee has suggested that in order to bridge this shortfall, the Ministry would now have to put more thrust on PPP model, try to pick up more resources through Indian Railway Finance Corporation and control expenditure.
Further, it has suggested every effort should be made to meet the demands on the traveller side in order to increase passenger earnings. PTI ARU