Rail minister flags first major hike in 10 years

After a decade of a "no fare hike regime" under a coalition government at the Center, train fares are finally set to increase to save the mode of public transportation from virtual bankruptcy. Srinand Jha reports.'Fares may be hiked to provide better service'

After a decade of a "no fare hike regime" under a coalition government at the Center, train fares are finally set to increase to save the mode of public transportation from virtual bankruptcy.

"We have to ensure that the vast infrastructure of the railways does not collapse and stop functioning. So, we have to increase fares and assure the public that if there is any hike, the public will also appreciate it because we are going to improve services," said new railways minister Pawan Kumar Bansal, shortly after taking charge.

Rail fares were last hiked in 2002 during Nitish Kumar's tenure.

Former railways ministers Mamata Banerjee and Lalu Prasad Yadav did not raise fares and both were accused of using the portfolio to promote regional political interests in their states.

Banerjee even forced a rollback of a hike proposal announced by her nominee Dinesh Trivedi earlier this year. That decision is estimated to have deprived the railways of Rs. 4,000 crore.

Railway minister Pawan Bansal and his deputy Adhir Ranjan Choudhary are seen at the railway ministry in New Delhi. UNI