New Year shocker: Indian Railways raise passenger fares from January 1, middle class to feel the pinch

The government has gone ahead with the increase in airfares weeks before the Union budget thus escaping the questions from the opposition parties in Parliament.
Indian Railways

TLI Staff

New Delhi: Already reeling under high food prices, common man will have to fork out more now for taking a train journey. National transporter Indian Railways has revised upward train fares across ordinary, non-AC and AC class in all trains including Rajdhani and Shatabdi super-fast trains.

While fares for non-AC class in ordinary trains have been raised by 1 paise per kilometre, the hike for mail/express non-AC class is 2 paise per kilometre. The maximum increase of 4 paise per kilometre has been effected in the AC class across various types of trains thus hurting the middle class the most.

The government has gone ahead with the increase in airfares weeks before the Union budget thus escaping the questions from the opposition parties in Parliament.

As a result of the decision, existing fares of train services like Rajdhani, Shatabdi, Duronto, Vande Bharat, Tejas, Humsafar and Mahamana among others would be raised from January 1, 2020. The fare level would go up depending on the class of coaches. For example, a trip from Kolkata to Delhi would cost Rs 15 more if journey is done in ordinary non-AC class. But the same journey in any AC class would have an additional cost of Rs 58.

In an official statement, Railways said that the fares had been revised upward to expand passenger amenities and facilities at various railway stations and trains.

“Fast modernization of Indian Railways will be achieved through this fare revision,” it said.

The statement noted that there would not be any hike in fares of suburban sections and seasonal pass holders who account for 66 per cent of the total passengers carried by the Railways.

The Railways had last time raised fares in 2014-15.

The country’s largest public utility said that upward fare revision had been also necessitated due to increased burden of 7th Pay Commission recommendations which resulted in higher wage bill. It has also been spending massively on rail network expansion and modernization requiring it to mop up resources.

While Railways has listed out various reasons for revising the fares, it is also a fact that people are grappling with price rise in essential items. Additionally, a large section of the working people in the private sector are uncertain about their jobs due to unprecedented slowdown in the economy forcing companies to retrench staff.

Most rating and research agencies have lowered their growth projections for the Indian economy adding to the uncertainties.

A Reserve Bank of India (RBI) survey earlier this month found Indian consumers were cutting down on their discretionary spends. Moreover, even manufacturers remain anxious about their future as they have been steadily losing their pricing power.