He also pressed for bringing down the operating ratio (amount spent to earn every Rs 100) from the current level of 88.8 per cent to 80 per cent by bringing efficiency in resource utilisation and for expansion of railway services including infrastructure.
Replying to the debate in Rajya Sabha on Railway Budget 2013-14, he justified the hike in the fares effected on January 21 and said it was "inevitable" as it had come after 12 years. "People have largely accepted the hike", he said urging members to accept it as the need of the hour.
"UPA does not do any kind of discrimination against any state," the Minister asserted.
"I was accused of raising the fares through backdoor and was criticised for it. But I want to say that it was a minimum fare hike. They accuse me of raising the fare by 25 per cent. This is, however, a marginal hike as in real terms it is only a hike of Rs 2 for a person travelling up to 100 km. The bus fare has in the meantime gone up several folds," he said.
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He said the cross subsidy has touched Rs 25,000 crore in the passenger segment.
Referring to the recent hike in reservation and cancellation charges, he said it was necessary to deter the touts as they were selling tickets of Rs 500 at Rs 1500.
He spoke about setting up of a Rail Tariff Authority to suggest fare revision in freight and passenger fares, subject to Parliament approval.