Title - Cess on petrol and diesel in the name of railway safety fund

Centre might have agreed to partially fund the dedicated railway safety fund but it may also impose an extra cess on petrol and diesel to collect money amounting to Rs. 10,000 crore. The centre will levy a cess on petrol and diesel in the name of safety related works.

Due to high number of derailment cases, railway too has decided to bring back the safety cess on rail tickets.

According to railways the dedicated safety fund will be utilised for human resource development, improved inspection system, track improvement, bridge rehabilitation works, rolling stock replacement, safety work at level crossings and many more things related to safety.

Railway safety fund was also created in 2001, when by implementing surcharge on passenger tickets railway was able to raise Rs. 5000 crore while the Rs. 12000 crore came from the finance ministry.

Back then a surcharge of Rs 1 was levied on general class tickets, 2 for second class and other class of coaches attracted a surcharge ranging from Rs 10 to 100.