Passenger fare hikes recommended by expert panel

Bs_logoImage
Press Trust of India New Delhi
Last Updated : Dec 31 2014 | 7:25 PM IST
Hike in passenger train fares, particularly in suburban service, and increase in the minimum distance to be covered in passenger and express trains have been recommended by an official committee in its report submitted to Railways.
The D K Mittal Committee, formed on December 4 this year to suggest ways and means to raise the revenue of Indian Railways, has recommended that the minimum distance of travel in passenger train should be increased from existing 10km to 20km and in mail/express segment it should be increased from 50km to 100km.
Currently, even if a passenger travels less than 10 km he is charged for the 10km in a passenger train and 50km in mail/express trains.
The expert panel has observed that the current suburban fares is 60 per cent less than road travel cost and emphasised the need for increasing fares in a gradual manner.
The committee has also suggested that railway PSUs should be given the task to execute the rail projects. "The PSUs should be given a free hand to raise funds from the banks and after completion of the projects, they would be handed over to railways," said a senior Railway Ministry official who was privy to the report.
Subscribe to Business Standard digital and get complimentary access to The New York Times

Smart Quarterly

₹900

3 Months

₹300/Month

SAVE 25%

Smart Essential

₹2,700

1 Year

₹225/Month

SAVE 46%

Super Saver

₹3,900

2 Years

₹162/Month

Subscribe

Renews automatically, cancel anytime

Here’s what’s included in our digital subscription plans

Access to Exclusive Premium Stories Online

  • Over 30 behind the paywall stories daily, handpicked by our editors for subscribers

Complimentary Access to The New York Times

  • News, Games, Cooking, Audio, Wirecutter & The Athletic

Business Standard Epaper

  • Digital replica of our daily newspaper — with options to read, save, and share

Curated Newsletters

  • Insights on markets, finance, politics, tech, and more delivered to your inbox

Market Analysis & Investment Insights

  • In-depth market analysis & insights with access to The Smart Investor

Archives

  • Repository of articles and publications dating back to 1997

Ad-free Reading

  • Uninterrupted reading experience with no advertisements

Seamless Access Across All Devices

  • Access Business Standard across devices — mobile, tablet, or PC, via web or app

More From This Section

First Published: Dec 31 2014 | 7:25 PM IST