E-Paper
Govt in dilemma over rail fare hike
The final decision with regard to hiking passenger and freight tariffs might be taken at a meeting on February 22.
The Centre is understood to have drawn up most of the railway budget for the fiscal 2005-06, but is still struggling with the question as to whether to hike passenger and freight tariffs.
"The broad contours of the budget have already been decided... Except a decision whether to go or not for a hike in passenger and freight tariffs," Railway Ministry said.
A final decision with regard to hiking rates was likely to be taken at a meeting between Prime Minister Manmohan Singh, Railway Minister Lalu Prasad Yadav, Finance Minister P Chidambaram and Deputy Chairman of the Planning Commission Montek Singh Ahluwalia on February 22.
The preparation of the Budget was preceded by two meetings with the Planning Commission and the finance ministry and one with the Prime Minister with full Railway Board, Finance Minister and Deputy Chairman of the Planning Commission on February 1, 2005.
The annual Plan size of Rs 14,498 crore in the current fiscal is expected to rise substantially for the next year in view of the UPA government giving special emphasis on development of rail-infrastructure in its National common minimum programme.
The Ministry of Railways have demanded Rs 5,000 crore additional budgetary support over and above the current Rs 702 crore. However, the Planning Commission is learnt to have indicated an increase of only 10.2 per cent, amounting to Rs 1180 crore, they said.
The Planning Commission has also asked the Railway Ministry that the rest of the money be mobilised through hike in passenger fares and infreight charges.
The Prime Minister's Office and the Finance Ministry are keen to do away with subsidies borne by the Railways, which amounts to Rs 5,735 crore as on March 31st, 2003.
The Ministry of Railways has said that the exchequer must compensate it for doing away with subsidies or else let the subsidies continue, sources said.
