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Rail Budget 2012: Fares up for all classes , 100 new trains , One lakh new jobs

For the first time in nine years, railway fares are set to go up for all classes—between 2 paise and 30 paise per kilometre—as Railway Minister Dinesh Trivedi presented the budget for his ministry on Wednesday.

The fare increase proposals were immediately trashed by his party members in Parliament, and his boss in the Trinamool Congress, Mamata Banerjee, asked the prime minister to sack Trivedi, her nominee in the Union Cabinet.

In his first budget as Railway Minister, Trivedi, in a bitter irony promised to provide one lakh jobs in railways over the next one year, as well as the introduction of over 100 new passenger trains. Trivedi also announced that the platform ticket will cost Rs 5 as against the earlier Rs 3. A total of 75 new trains will be introduced along with 21 new passenger services and 17 for sub-urban service, he said. Routes of 39 trains will be extended while frequency of 23 trains will be increased.

Delivering his 105-minute speech in the Lok Sabha, Trivedi observed: “I am asking an extra two paise per km on suburban and ordinary second class. Similarly, an increase of three paise per km for mail and express train. For sleeper class, I am asking only 5 paise (increase) and for AC chair car and III tier, only 10 paise per km, and for AC II tier 15 paise per km and AC I class by 30 paise per km.”

Accordingly, over a 100-km run, the fares will go up by Rs 2 on suburban and ordinary II class trains, Rs 5 for sleeper class, Rs 10 for AC chair car and III tier, Rs15 for AC II tier and Rs 30 for AC first class.

“The proposed revisions will have marginal impact on fares,” the minister said. “The proposed adjustments do not even cover fully the impact of increase in fuel prices during the last eight years.”

Trivedi made it clear later that there will be no rollback of fare hike. The last time that the fare was hiked was in 2002 when current Bihar Chief Minister Nitish Kumar was the railway minister. According to the minister, the increase in fares for suburban second class passengers travelling 35 km will be only Rs 2. For non-suburban second class ordinary passenger travelling a distance of 135 km, the increase will be Rs 4. For second class mail/express passenger travelling a distance of 375 km, the addition to the fare will be Rs 12 and that for a 750-km journey by sleeper class on mail/express train will be only Rs 40. An AC 3-tier passenger travelling a distance of 530 km will be required to pay an additional Rs 57. The increase for AC 2-tier and AC I passenger travelling over same distance will be Rs 84 and Rs 163 respectively.

A Railway tariff authority would also be set up to decide fares. He also announced setting up of Indian Railways Stations Development Corporation to re-develop stations and maintain them like airports and an independent Railway Safety Authority as a statutory body.

As regards railway finances, this budget provides railways an outlay of Rs 60,100 crore for 2012-13. This is the highest ever that the mega organisation has received.

According to him , the plan outlay will be financed by way of Rs 24,000 crore through budgetary support, Rs 2,000 crore from safety fund, Rs 18,050 crore from internal sources and Rs 16,050 from extra budgetary resources, which will include market borrowings.

He also laid stress on increasing safety measures in railways and bringing down the number of accidents and deaths owing to the mishaps.

For second class mail/express passenger travelling a distance of 375 km, the addition to the fare will be Rs 12 and that for a 750-km journey by sleeper class on mail/express train will be only Rs 40. An AC 3-tier passenger travelling a distance of 530-km will be required to pay an additional Rs 57.

The increase for AC 2-tier and AC I passenger travelling over same distance will be Rs 84 and Rs 163 respectively.

The minister disclosed that subject to approval of Parliament, a railway tariff authority would be set up to decide passenger fares.
He also announced setting up of Indian Railways Stations Development Corporation to re-develop stations and maintain them like airports and an independent Railway Safety Authority as a statutory body to deal with safe issues.

As regards railway finances, this budget provides railways an outlay of Rs 60,100 crore for 2012-13. This is the highest ever that the mega organisation has received.

According to him , the plan outlay will be financed by way of Rs 24,000 crore through budgetary support, Rs 2,000 crore from safety fund, Rs 18,050 crore from internal sources and Rs 16,050 from extra budgetary resources, which will include market borrowings.

He also laid stress on increasing safety measures in railways and bringing down the number of accidents and deaths owing to the mishaps.