Railway panel for one-time hike of 25% in fares

A committee on rail modernisation chaired by advisor to the Prime Minister, Sam Pitroda has given the recommendation of linking all Railway fares to inflation and go for one time hike of 25 percent.

As per the reports of a news paper, the move aims to breathe a new leash life to the ailing Indian Railways and raise around Rs 60,000 crore by next year.

Meeting ahead of the crucial Railway Budget of 2012-13, the committee has recommended that the raised fund of Rs 60,000 crore could be used to part-fund a modernisation programme of Rs 9,13000 crore spreading over next 5 years .

In its presentation to the Planning Commission, the Pitroda chaired panel has mentioned that a 25 percent hike in the passenger fares can fetch around Rs 37,500 crore.

Meanwhile, linking all kind of Railway fares including the freight charges to that of the inflation can fetch Rs 25,000 crore.

Reportedly, the Railways Minster Dinesh Trivedi and his party leader Mamata Banerjee are at loggerheads over the issue of raising passenger fares.