New Delhi: Union Railway minister Suresh Prabhu faces a stiff dilemma on whether to raise fares and freight rates in his second Rail Budget Thursday as Railway finances come under tremendous strain.
While the falling revenue collection and increasing demand for funding various capacity augmentation projects as well as the requirement for improving passenger services demand hiking up fares, a section in the Railway ministry does not favour any such move, saying an increase at this juncture will not be a very good idea as elections are round the corner in four states and diesel price is on the downslide.
“Diesel price is on the decline. Passenger bookings and goods loadings are also on downslide. So at this moment hiking freight and passenger fares will affect the Railways adversely,” sources in the Railways said.
“Fare hike can be effected anytime after Budget also, if required and it is not necessary that it has to be done only in the budget,” sources added.
Besides, Prabhu will also have to take a call on whether to impose safety cess for strengthening safety measures to prevent accidents. PTI