Lalu hints at further reduction in rail fares

Railway Minister Lalu Prasad today promised to bring down passenger fares following increase in revenues and said his ministry would consider carving out a new division in salem from Palghat division of southern railways if Tamil Nadu and Kerala agreed.

"The one rupee reduction in fares was a signal to people. As the revenue of railways increase, we will bring down passenger fares further," Prasad said winding up discussions on supplementary demands for grants for railways in Rajya Sabha.

The supplementary demands for grants 2005-06 got parliamentary approval after Rajya Sabha returned it by a voice vote. It had earlier been passed by Lok Sabha.

The minister said the performance of railways had improved considerably and it had started paying dividend again.