Fare hike imminent, but unlikely in Rail Budget

Hike in passenger fares, though imminent, may not find place in this year's Railway Budget. At the most, there could be an announcement on a pricing model linking fares to input costs. The fare hikes, in fact, could come after the Budget, or may be even before, in the small window of a few days after the State election results, depending on the political climate. Passenger fares of the Indian Railways, which move about 800 crore people a year, have been always been a political hot potato. Since 2004, when the UPA-1 came to power, Railway Ministers such as Mr Lalu Prasad and Ms Mamata Banerjee have been unwilling to be branded as those who made rail travel costlier for the masses.

Source: The Hindu Business line