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This is an archive article published on July 2, 2004

PM puts some brakes on Laloo Express

Prime Minister Manmohan Singh has asked Union Railway Minister Laloo Prasad Yadav to tone down some of his populist proposals for the Railwa...

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Prime Minister Manmohan Singh has asked Union Railway Minister Laloo Prasad Yadav to tone down some of his populist proposals for the Railway budget, to be presented on July 6.

In a meeting on June 29, Singh is believed to have turned down Laloo’s proposal for a 10% hike in passenger fares for air-conditioned classes — suggesting only half the hike. But he was allowed to go ahead with his plan of not increasing fares for general and sleeper classes. Sources said the PM was also not comfortable with Laloo’s idea of doing away with reservations for day journeys.

Laloo was also asked to do a rethink on introducing ‘‘khadi furnishings’’ since they had not gone down well with passengers when introduced in 1989 by then Railway Minister George Fernandes.

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Singh expressed concern over the dwindling demand for AC first class since fares were comparable to economy air fares. Laloo was asked to ‘‘rationalise’’ AC first class fares to make it attractive to rail users.

Laloo was also told to keep freight rate hikes to the minimum, so as not to lose out on rail traffic to the road sector.

Another of Laloo’s ingenious proposals — for doing away with reservations for day journeys — was turned down.

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