Rail Budget 2016-17: Suresh Prabhu unlikely to hike passenger fares
New Delhi: The passenger fares may not rise in the Rail Budget 2016. As per a report in The Economic Times, Rail Minister Suresh Prabhu is unlikely to include rail fares in his ways and means for garnering revenues for the Indian Railways.
Rather, he is likely to focus on innovative cash generation.
The report said that instead of diverting funds on more rail projects, the Rail Minister is expected to focus on strengthening the rail network.
The rail budget 2016 may also not seek hike in freight charges, since diesel prices have gone down and cross-subsidising passengers is not seen as good economics, added the report.
The report, quoting sources, added that even the Prime Minister’s Office was not in favour of a fare hike. The railways had already tweaked certain concessions, and changed refund and Tatkal rules outside the Budget.
While cancellation charges were doubled, seats under Tatkal were increased to 30% from 10% in all trains, bringing in more revenue.