Title - 7% train fare hike from next fiscal year

The announcement of rail fare hikes may not be made in budget speech but it appears that railways has sneaked in around 7% fare hike for passenger trains that will be applicable from next fiscal year. Passenger segment in railways is highly subsidised especially non AC class therefore the hike can be more prominent in this segment.

The earning figure of railways projected in the budget has taken the likely fare hike into the account. The total earning till March this year is likely to be shown around Rs. 1.72 lakh crore which accounts to Rs 12,000 crore shortfall.