No fare hike, 106 new trains announced

With no fare hikes, 106 new trains and a host of proposals for travel safety and comfort, such as escalators at key stations, a new e-ticketing system and a swanky coach in select trains, Railway Minister Pawan Kumar Bansal presented his maiden annual budget for his ministry Tuesday.

"The growth of Indian Railways is inextricably linked with the growth of the country," Bansal said in his 80-minute budget speech in Lok Sabha, the lower house of parliament, that clearly bordered on populism with a fair dose of measures on fiscal discipline.

"Railways must remain financially sustainable. Resources generated must be ploughed back," he said in what was the last such annual exercise for the United Progressive Alliance (UPA) government before the next general elections, scheduled in 2014.

But Bansal said there will be no major fare hikes this time, having already revised them last month. He nevertheless proposed minor revisions in some charges, such as those for tatkal and reservations. He also called for a routine 5-6 percent fare hike every year.

On freight, he said, there will be an upward revision of 5-6 percent from April 1 to balance the hike in fuel costs. He said freight and passenger fares must be de-linked from the fuel costs with periodic automatic adjustments.

Bansal said while making all these proposals, he was happy to note that the operating ratio of Indian Railways -- the money spent on recurring costs such as salaries and interest to earn Rs.1 in revenue -- had come down to 88 paise from around 95 paise.

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