RailEnquiry

Indian Railways is facing a severe cash crunch and is ready to take some radical measures which can hit prices of train tickets.

To improve the financial situation of the world’s fourth largest train network the fares could be linked to consumer price index (CPI). This will make train fares to rise with a rise in shop-end price.

A railway official said, “Several radical steps need to be taken and this can be one of them. Linking passenger fares with the CPI will enable the railways to recover costs.”

Although railway carry 23 million passengers a day but still its passenger earning is dismal and recently it posted a loss of Rs. 30,000 crore due to rise in input cost. Currently, it needs an additional 32,000 crore rupees so that it can implement seventh pay panel recommendation.

For railways hike in passenger train prices has always been a touchy issue as it is seen as a mode of transportation for common man due to its extensive network throughout the country. Linkage of train fare with CPI will help railway to raise fares of unreserved class on a quarterly and half yearly basis without too many adverse reaction.