Suresh Prabhu to present Rail Budget at 12 noon

New Delhi, Feb 25 (KNN) Union Minister Suresh Prabhu is all set to present the Rail Budget at 12 PM which would be his second Rail Budget since taking charge of the Ministry.

Speculations are doing round in the media whether the fares and freight charges would be increased in the Budget.

Prabhu, who has left Rail Bhawan, said, “I hope we’ll be successful in addressing the needs and aspirations of people of country.”

The cross-subsidy from freight to passenger operation has crossed Rs 30,000 cr this year. Indian Railways have earned Rs 136,079.26 crore as against the target of Rs 141,416.05 crore during April-January period, a decline of 3.77 per cent.

Meanwhile, industry body Assocham has impressed upon the Railway Minister Prabhu to muster political courage and go in for a hike in the passenger fares which have been kept low at the cost of freight traffic.

In a memorandum to the Railway Minister, the chamber said, “There is lack of political will to raise passenger fares even though the reluctance is not shared by passengers, who would be willing to pay more provided the hike is accompanied by better services including timely arrival of trains, cleanliness at stations, safety and improvement in food”.  

It said the fare increase would reduce the drastic losses on passenger traffic, now running at 68% of passenger earnings. Passenger losses (including suburban and non-suburban) have grown from 72% of social obligation cost borne by the railways in F1975 to 95% in F2014. The decline in passenger losses would also have a significant positive impact on railways’ finances. It might also enable the railways to stop whittling away their financial cost advantage over roads as a mode of transport, by creating the potential to reduce the over-recoveries on freight to make up for the under-recovery in the passenger segment. (KNN Bureau)