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Railways form tariff authority to decide fares

Express news service

Posted: Oct 09, 2012 at 0147 hrs IST

New Delhi With Mamata Banerjee’s Trinamool Congress out of the government, the railway ministry seems to have decided to slowly but surely reverse the populist policy of no fare increases. As a first step in this direction, Railway Minister C P Joshi on Monday decided to set up a Rail Tariff Authority.

The new body to determine train fares will be similar to what former railway minister Dinesh Trivedi had proposed. The move is also seen as an attempt to undermine the discretionary power of railway ministers (or their party leaders) in deciding rail fares. “The authority will give us an idea on how to determine fares and freight rates, and to what extent,” Joshi said.

The cabinet will soon decide on whether the authority would be a regulatory or recommendatory body, the minister said.

The minister has also agreed to consider the recommendations of the high-level panels on railway modernisation and safety, headed by Sam Pitroda and Anil Kakodkar respectively.

“Safety and modernisation are the need of the hour. I am aware of the two important reports,” Joshi said.

Though the two committees had recommended fund infusion from outside, they had also advocated fare hikes to pay for safety and modernisation upgrades. The recommendations of both panels set up by Dinesh Trivedi were junked by Mukul Roy, who replaced him.

Joshi declined to directly comment on a query on whether passenger fares, which have remained untouched for the last 10 years, would be hiked. “We have agreed to set up this authority, so let us take one step at a time,” he said. The rollback of the fare hike has cost the Railways Rs 4,027 crore in projected earnings, throwing revenue calculations for this year out of gear.

The new authority will also look into ways to delink fares from recurring fuel price hikes by introducing a fuel-adjustment component. “We need to insulate ourselves from fuel hikes. As it is, the cost of running these services has become unviable,” Railway Board Chairman Vinay Mittal said. A working group has been formed under Mittal to draw up the authority’s composition and powers.

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Railway Security by Ashutosh on 10 Oct 2012

Railway Stations and trains should be declared as private premises and their security totally taken over by the Railways and enforced through private agencies. GRP and RPF do not provide any security but cause harassment to the travelling public instead.These should be disbanded or cut to size resulting in colossal savings.

The Improvement of Indian Railway and safety for all rail passengers. by Ignatius Varghese on 09 Oct 2012

Every citizen of this great nation want an urgent need is to improve indian railway and its safety very badly.We do want a qualified and able and interested railway minister who can do the welfare of railway and the safety for all rail passengers.It is a great shame for the Indians to see the real condition of trains and the safty of the passengers.Sorry to say Mamata and her T.M.C. ministers has done nothing for the safty of rail passengers.Let us work hard and plan for the development of railway and better safty for the rail passengers who are helpless in the hands of rail minister and the team.We do expect an action plan from the goverment of India who can do something

Agree and Fares should move up, safety and modernisation should be the theme by P Rajarathanam, on 09 Oct 2012

no problems from me, i support the railways plan to increase charges, and setting up of the Tariff Authority is a welcome one, the time has come to take some bold decisions with respect to safety and modernisation of the railways, also to step up speed in important corridors , energy efficient coaches, cleanliness safety is of paramount importance. The railways ministry should not be used for getting political gains of the parties.

Safety First!! by gaurav on 09 Oct 2012

I feel increasing fares for ensuring safety is a decision that should be supported. Safety is the first concern and should be addressed.

thankfully this is being done by ashok pai on 09 Oct 2012

please do not play with the lives of common people. railways needs money to run it's vast network. so raising prices to realistic levels is necessary. the first they should do is to build hygienic conditions and not dump human wastes on the track. the human wastes o nthe track is probably the largest breeder of disease for people living close to the tracks.

Railway Fare must Go up by mustafa on 09 Oct 2012

all Passengers traveling by train safety frist , for safety passengers must pay more.

Agree by Vijay on 09 Oct 2012

I agree 100% Mumbai is a prime example where rail safety is grossly compromised. We have already seen 2 major accidents recently.

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