Railways may hike second, sleeper class fares in budget

The railways is mulling over increasing passenger fares of second and sleeper classes in this year’s budget. There is a dominant view in the ministry that passenger fares of AC classes should not be touched as it is already high and an increase would make rail travel less competitive than the air travel. "There is no scope of increase in AC fares. It is already high. There is certainly enough scope in passenger fares of second class and sleeper classes. However, the decision cannot be entirely commercial. This is a political decision and has to be taken by the political leadership,” said a top official in the Railways. The current leadership in the Railway Ministry with Suresh Prabhu at the helm is said to be in favour of increasing fares. It is also against cross-subsidisation of passenger fares by freight earnings. Railways incurs an annual loss of Rs 30,000 core in passenger traffic.   DHNS