New Delhi: Trains are more about a journey full of experiences, than just a mode of transportation. Taking this experience to a whole new level are the luxury trains of India that glam up your trip and take you back in the era of kings and royalty. Rail travel can be expensive soon. Indian Railways is going to hike the fares of train. The Prime Minister’s Office (PMO) approved the increase. It is likely that the fare increase will be implemented soon.
According to a report, Indian Railways is making a policy on hike in fares, which is expected to be ready by the end of this month. There may be additional announcements in rail fares in this policy.
How much fare will be increase?
According to sources, the railway is set to increase the fares by 8 to 10 percent. The government wants to reduce cross subsidies by hiring rail fares for travel. Cross subsidies are meant to compensate for the loss of freight earnings by incurring a loss in travel freight. The Railways are working on a new formula thatthe route with the highest number of passengers, may increase the fares.
What is the reason for raising the rent?
The operating ratio of the railways is constantly deteriorating. During the last seven months the Indian Railways operating ratio was 108%. Operating ratio means the amount of money spent on earning Rs 1 for the railway, which is called operating ratio. If this figure is beyond 100, that means the cost of the railway is higher than the total revenue of the railway, which is not a good sign.
When did the rent increase earlier?
Earlier in June 2014, the Modi government had increased the fares. Travel fares were increased by 14.5 percent at that time. While the freight hike was up by 6.5%. Even then, the government justified the hike in railway fares by citing the deteriorating economic condition of the railways.