Title - Rail fares may increase due to addition of safety cess

Since finance ministry rejected Prabhu’s proposal for safety funds for railway that was amounting to Rs 1,19,183 crore therefore soon a safety cess might be burdened on passengers. This money was intended to use for up-gradation of signalling system, elimination of unmanned crossings and other safety related measures to prevent any mishap in future.

Mounting financial burden on railways rail minister Suresh Prabhu was forced to move a proposal to finance ministry for additional funds. However finance ministry is agreed to provide 25% fund but has asked railways to manage other 75% on its own. This has prompted to add an additional safety cess by Indian Railways so that additional funds can be generated.

Since AC Second and First class fares are already high due to which passengers are staying away from them therefore these two classes might attract least cess however sleeper class and AC three tier may attract higher cess.