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This is an archive article published on August 15, 2015
Fare restructuring of suburban railways on the cards
Sunil Kumar Sood, General Manager, Central Railway said, “There can be an additional charge on outstation passengers between Rs 10 to Rs 50 as part of their tickets.”
Suburban railway officials are exploring new avenues to generate revenue. Restructuring of fares and levying additional charges for long distance passengers are some of the several steps being considered.
Sunil Kumar Sood, General Manager, Central Railway said, “There can be an additional charge on outstation passengers between Rs 10 to Rs 50 as part of their tickets.”
He said local train fares are very low, and if fare is not increased, railways will be unable to improve infrastructure of suburban railways.
Taking a cue from BEST that runs bus transport, railways is considering collecting some property tax to subsidise loss-making suburban section. BEST had sent a proposal to BMC for allowing 8 per cent of property tax to be used by it.
The railways is looking at developing a corpus fund over 5 years with the help of commercial exploitation of land and space available. The money would be utilised for development of infrastructure projects. The railways say they purchase power at Rs 6.45 per unit to Rs 8 per unit and spend Rs 600 crore on power.
If allowed to purchase power from other states, they will save Rs 200 crore. At present they are charged Rs 3
per unit as cross-subsidy as they have been given assured power supply.
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