Railway Ministry raised passenger fare by 14.2%, freights by 6.5%
The Railway Ministry has effected a sharp hike of 14.2% in train passenger fares in all classes and a 6.5% surge in freight rates to earn Rs 8000 crore a year for the cash-deficient Indian railways.
The increased charges will come into effect from June 25, 2014 (midnight of June 24). The decision is expected to generate an additional revenue of around Rs 8000 crore for Indian Railways which is currently facing loss of Rs 30 crore a day. At a time when the cross-subsidy on passenger fares has already reached Rs 26,000 crore, the fare increase is expected to improve the financial outlook of Railways.