9:40 AM
New Delhi, October 3
The Railways could soon announce an increase in the freight with the proposal to hike the fares being under active examination of the Railway Minister who would take a decision soon.
Speaking to the media on the sidelines of a railway exhibition here, Railway Minister Mallikarjun Kharge said the proposal for fare hike was pending with him and he would soon take a decision.
However, railway officials clarified that the hike would be administered only in the freight with the passenger fares unlikely to be tinkered.
Former Railway Minister Pawan Kumar Bansal had announced the implementation of FAC-linked revision in only freight from April 1.
Kharge said, "Fuel adjustment component (FAC) was announced in the Budget and as per the Budget proposal it should have been implemented from October 1. The file containing the FAC proposal has come to me and I am examining it and a decision will be taken shortly".
According to the Budget proposal, the fuel component is segregated from tariff as FAC. Railways is expected to revise the passenger fares and freight every six months after taking into account the input cost.
Railways have had to bear an extra burden to the tune of Rs 2,000 crore and of Rs 1,200 crore over the next six months due to increased energy and input cost. The cross-subsidy for passenger service is currently touching Rs 26,000 crore a year.
The Railways had earlier decided not to pass on the additional burden of Rs 850 crore because of the fuel hike to the passengers and absorbed it.
Earlier, inaugurating the 10th edition of International Railway Equipment Exhibition (IREE), he said in a move to adopt environment friendly and cost-effective alternate fuel, the Indian Railways has taken a global lead in starting development of the Common Rail Electronic Direct Fuel Injection system for its fleet of diesel locomotives.
The Railways could soon announce an increase in the freight with the proposal to hike the fares being under active examination of the Railway Minister who would take a decision soon.
Speaking to the media on the sidelines of a railway exhibition here, Railway Minister Mallikarjun Kharge said the proposal for fare hike was pending with him and he would soon take a decision.
However, railway officials clarified that the hike would be administered only in the freight with the passenger fares unlikely to be tinkered.
Former Railway Minister Pawan Kumar Bansal had announced the implementation of FAC-linked revision in only freight from April 1.
Kharge said, "Fuel adjustment component (FAC) was announced in the Budget and as per the Budget proposal it should have been implemented from October 1. The file containing the FAC proposal has come to me and I am examining it and a decision will be taken shortly".
According to the Budget proposal, the fuel component is segregated from tariff as FAC. Railways is expected to revise the passenger fares and freight every six months after taking into account the input cost.
Railways have had to bear an extra burden to the tune of Rs 2,000 crore and of Rs 1,200 crore over the next six months due to increased energy and input cost. The cross-subsidy for passenger service is currently touching Rs 26,000 crore a year.
The Railways had earlier decided not to pass on the additional burden of Rs 850 crore because of the fuel hike to the passengers and absorbed it.
Earlier, inaugurating the 10th edition of International Railway Equipment Exhibition (IREE), he said in a move to adopt environment friendly and cost-effective alternate fuel, the Indian Railways has taken a global lead in starting development of the Common Rail Electronic Direct Fuel Injection system for its fleet of diesel locomotives.
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