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Rail Fare Hike By Modi Government

Updated on June 21, 2014

Railway Minoister DV Sadananda Gowda


6.5 % Freight Charge Hike


Railways Fare Hike

14.2 % rail fare has been increased for economic reformation in Railways . Passenger fare is going to be 14.2% higher than before while freight charge has been declared as 6.5% more than before.A basic 10 per cent hike has been declared in all classes and an extra 4.2 per cent hike under fuel adjustment component (FAC) will be effective on and from 25th June 2014, taking fares to 14.2 per cent rise. Freight charge is increased 5 percent flatly and an additional 1.5% is added for FAC to it. The FAC meaning Fuel Adjustment Component is the dynamic cost that takes into consideration as change in the costs of diesel and electricity occurs.This is the third rise since 2013 under FAC. Under FAC, an increase of 5.7 per cent was announced in April 2013 1.7 per cent for freight charge was raised.

The decision to rise the 14.2% railway fare was signaled by UPA(United Progressive Alliance) government on 16th May in 2014 in the day when the Loksabha result was published showing the grand success or landslide victory of Bharatiya Janata Party led National Democratic Front(NDA) defeating sitting in centre government and ruling Indian Congress Party led United Progressive Alliance(UPA).But the decision was withdrawn. On Friday Railway Minister D V Sadananda Gowda approved the hike. “It’s necessary to take steps to improve financial discipline and improve the economic health of the country,” Modi ,the Prime Minister of India said in Goa. He added that his popularity might fall down ,but when people realize the reality they will appreciate the decision.
Paban Bansal ,the previous railway minister in UPA government from October 2012 ,announced fare hike which was made effective on and from 21 January , 2013 .He expected Rs 6,600 crore from the hike. Dinesh Trivedi made a bold decision to hike fares in the Budget in February, 2012 to get an extra Rs 4000 crore.But unfortunately he was made to resign as the decision was against Trinamool Congress,his party.

Fare hike in various categories by Paban Bansal:

The hike for Second Class in Ordinary Suburban was 2 paise per km.

The hike for Second Class Ordinary Non Suburban was 3 paise per km.

The hike for Second Class in Mail Express Trains was 4 paise per km.

Hike for AC chair car was 10 paise per km.

The hike for AC first class 10 paise was done earlier and then was added 3 paise per km.

The fare rise for AC two tier was 15 paise done earlier and then 6 paise per km was added .

For AC three tier ,it was 10 Paise per km

For AC first class executive class , 30 paise was done earlier and 10 paise per km was added by Bansal.

For First Class it was made 03 paise per km.

For Sleeper Class a 6 paise per km was made to add to the then fare.

Fare hike in various categories by Paban Bansal:

Hike Rate
Early Hike
Second Class Ordinary Suburban
- 2 paise per km
Second Class Ordinary Non Suburban
- 3 paise per km
Second Class Mail Express Trains
- 4 paise per km
AC chair car
- 10 paise per km
AC first class
- 3 paise per km
10 paise done earlier
AC two tier
- 6 paise per km
15 paise done earlier
AC three tier
- 10 Paise per km
AC first class executive class
- 10 paise per km
30 paise done earlier
First Class
- 03 paise per km
Sleeper Class
- 6 paise per km

AIADMK Jaylalitha Opposes Fare Hike


Opposition Parties Against Hike

Politicians In This Issue :- “I appeal to the Prime Minister to roll back the hike considering the welfare of the poor and the middle class people,” she said in a statement . “I appeal to the Prime Minister to increase the revenue of the Railways through other avenues instead of going in for hike in passenger fare and freight rates.” Lalu Prasad Jadav has also criticized BJP for the presen announcement on railway fare hike. “The BJP befooled people in the general election by promising Achee din...they have fired the first salvo from toop (tank) on common man’s chest by announcing big increase in rail fare and freight,” Mr. Prasad told reporters. I do not remember any government in the past had announced such a big increase in Railway fare and freight in one go,” Mr. Prasad said.

“This is a cruel blow to the working people who have been victims of relentless price hikes in the years of Congress misrule. Instead of bringing them some relief as promised in his election campaign, the Modi government has put a huge burden on the mass of people who use the Indian railways,” the CPI(M) Polit Bureau said in a statement.

“The increase in freight rates will have a cascading impact on prices of essential commodities which are transported by rail across the country,” it said.

"Ab ki bar Double Speak Sarkar.... Modi wrote a letter to PM in 2012 on the Rail fare hike ! ACHHE DIN AA GAYE !," Congress general secretary Digvijay Singh said on Twitter.

The "biggest hike in history", Maken said. He also cynical to thw words od Narendra Modi -"good days are going to come". Maken read out a part of a letter Modi had written to the previous Prime Minister Manmohan Singh.

He read "the decision also reflects huge communication gap between the Ministries of Railway, Energy, Coal and Environment. This is despite the Prime Minister constituting a high-level committee for coordination."Then Maken asked "I want to ask if this lack of coordination that he wrote about is still there? While in opposition, he said something else and now in power he is doing the opposite".

Passenger Train Rammed into a Stationary Train


Passengers Amenities Needed


Infrastructure Needed


Right Or Wrong

For safety, security ,modernization and other passenger amenities fare hike was inevitable. For many years ,there was a cumulative deficit in railways. It needs an extra profit to regain its rebirth.Raw materials like steel,cement are going to be hiked as the carriage cost would cost more than before.But the rise in fare ,specially in freight charge establishes Modi as an industry-friendly Prime Minister of of country. Undoubtedly the present government is trying to control subsidies and pricing services .These must make India richer and thus the development comes nearer.Railways is in financial proverty with passenger subsidy of Rs 26,000 crores. This financial deficiency obstructs to renovate and maintain signaling system and strengthening the track from preventing accidents. Hike in rail fares and freight charges is expected to inflation. This type of rate in fare hike was not executed in past years. The new Modi government only tries to improve the Indian economy by many means like withdrawing subsidies , fare hike in rail etc .Thus the rail fare is one of these. But according to some economist fare hike has become inevitable for railway reformation.


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