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The railways may not cut passenger fares anytime soon. This is against the backdrop of a global slump in crude oil prices that has brought down the diesel cost for the country’s largest transporter.
Instead of passing on low diesel price benefit to passengers, the railway wants to focus on measures to improve safety and passenger services in the upcoming budget in February.
A ministry official said, “The relief to passengers is already there as fares are highly subsidised. There should be relief for railways now.” He was addressing reporters but did not want to be named.
He added the ministry has ordered an energy audit of the railway systems to identify potential for energy savings apart from setting up renewable energy plants.
Diesel price for bulk consumers including Indian Railways has come down by 16 per cent to Rs 50.51 per liter since June when it last revised passenger fares through a 14.2 per cent hike and freight rates by 6.5 per cent increase. However, railways has not reviewed the FAC component of tariff that was due this month.
The official also said the ministry is planning to approach the Union cabinet once feasibility studies being conducted by Japanese and Chinese companies for Mumbai-Ahmedabad and Delhi-Chennai high speed corridors are submitted.
Prabhu is also looking at tapping into "unconventional" sources of revenue for turning around railways including earnings from advertisements and leasing of its huge land bank. "Advertisements as a source of earnings has been grossly under-estimated. According to RITES, railways can earn upto Rs 10,000 crore from advertisements," the official said.
The ministry is now waiting for D K Mittal committee's recommendations on revamping its financial position. The report is likely to be submitted on Tuesday.
