An approach to Rail Budget 2016: need to raise the passenger fare, says Assocham
Ahead of the granted Railway Budget, Assocham today has come up with his new approach to the Railway Minister Suresh Prabhu to hype the Political courage and look forward to raise the passenger fare as the present fare is being kept so low with respect to the cost of the freight traffic.
According to the memorandum given by the chamber to the Railway Minister, there lies some lack from the political side to go for a hike to the current passengers’ fare though the reluctance is not being shared by any passenger. Also he said that people will love to pay more when they are accompanied with much better services than the earlier, which would be including the cleanliness of the station surroundings, timely arrival and departure of the trains, improvements in the food and safety.
It is believed that the intent to increaser the fare is to reduce the dynamic and drastic losses that occur on the passenger traffic, which is running at 68% in the current passenger earnings. Also passenger sufferers have increased from 72% with respect to the social obligation cost given by the railways, F1975 to 95% in the year 2014. Also the decline in the passenger losses also rendering a significant impact on the railway finances.
Assocham said “It would also have a chance to facilitate the railways to break the whittling away the cost advantage of their finances over roads as an effective means of transportation by incorporating a potential impact in order to reduce the over-recoveries that occur on freight and to look forward to the under-recovery to the passenger segment.
Furthermore, Assocham stated that the build of the modernization of the stations as PPP model would boost the Swachch-Bharat Mission that can be implemented in the stations and earnest in trains.