Industry body says Indian Railways ‘must hike fares’

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Indian Railways needs to increase its rail fares to ‘invest in capacity expansion, modernisation and building infrastructure in the next five years’, according to a study conducted by the Associated Chambers of Commerce and Industry of India (ASSOCHAM) advocated.

The body advised that fares must be increased for all classes ranging from Rs 10 to Rs 100.

Quoting the study entitled Railway Challenges – Restructuring is the Solution, D.S. Rawat, general secretary of ASSOCHAM said:

“The Railways may consider withdrawing from non-transportation activities through corporatisation and outsourcing to focus on enhancing passenger safety. Private companies should be allowed to participate as joint venture partners to bring in substantial funds and improve service.”

The organisation also said that a three-way split is ‘essential’, with passenger and freight sections becoming separate entities, and operations put under the direct control of the Railway Board.

According to experts, for the next five years Indian Railways needs to spend more than $50 billion (Rs 1 lakh crore) on safety requirements, which includes $ 4 billion (Rs 20,000 crore) for advanced signalling systems on 19,000 kilometres of trunk routes, $25 billion (Rs 50,000 crore) for elimination of all level crossings and $ 2 billion (Rs 10,000 crore) for manufacturing coaches with advanced designs.

“Our proposal is to let some space in each station be auctioned to private enterprises for various passenger amenities like hotels, food courts and retail outlets. At least 500 of over 7,000 stations will be attractive propositions for entrepreneurs,” the study said.

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