Railways says no to independent fare-fixing body

Planning Commisssion deems passenger tariff subsidy unnecessary, proposes independent regulatory authority for fares

PTI | March 24, 2010



The Railways on Tuesday rejected the Planning Commission's proposal for setting up a rail tariff authority to fix passenger fares in a non-political manner.

"They have their own views, we persist with our views," Planning Commission Deputy Chairman Montek Singh Ahluwalia said when asked whether the panel's proposal was rejected by the Railways.

In his presentation before a meeting of the full Planning Commission chaired by Prime Minister Manmohan Singh, Ahluwalia suggested that "a Rail Tariff Regulatory Authority should be established to recommend rail tariff structure in a non-political fashion".

Although railways' minister Mamata Banerjee was not present at the meeting, a senior official of the ministry turned down the proposal saying it was not possible to allow any authority to fix passenger fares as the organisation has to discharge social obligations.

Later talking to reporters, Ahluwalia said the Railways needs lot of funds to implement the schemes envisaged in the Vision 2020, which can cannot be provided through the budgetary allocation.

The organisation needs to raise resources from internal sources by rationalising tariffs, he said, adding the Railways is providing a subsidy of Rs 19,000 crore towards passenger fares. For improvement of rail infrastructure a lot of investment is required.

"That the ministry would have to generate from their internal resources and through PPP. I think for increasing internal resources, tariff rationalisation is necessary. There is a subsidy to the tune of Rs 19,000 crore in passenger tariff. We think that is unnecessary," Ahluwalia said.

 

 

Comments

 

Other News

Trump’s China setback pushes US to woo India

A week after Donald Trump’s visit to China – the first by an American president in nine years, US secretary of state Marco Rubio arrived in India on May 23 on a four-day visit aimed at resetting Washington DC’s relations with New Delhi and attending the third Quad ministerial meeting.

EU–India FTA 2026: A high‑stakes prescription for Indian pharma and healthcare

India’s pharmaceutical industry stands as one of the world’s market leaders of generic pharmacy with market valuation of USD 50 billion in 2026. Characterised by high volume, low-cost generic manufacturing, with an annual growth rate of 10-12% primarily propelled by exports and domestic demand,

Legends, vignettes and tales from the freedom movement

Robin Hood of Kathiawar and Other Extraordinary Stories from India’s Freedom Movement By The Paperclip  HarperCollins, 348 pages, Rs 499  

Solicitor General Tushar Mehta tells quirky tales from the world of law

The Lawful and the Awful: Quirky Tales from the World of Law By Tushar Mehta Rupa Publications, 336 pages, Rs 995  

Cabinet meet discussed `Ease of Living`, `Ease of Doing Business`

The Council of Ministers has deliberated upon valuable perspectives and best practices relating to boosting ‘Ease of Living’ and ‘Ease of Doing Business’, prime minister Narendra Modi said on Friday.   As he shared details of the Council meeting held the d

India should deepen energy partnerships with Africa

The vulnerability of Strait of Hormuz continues to influence energy politics globally. India is highly dependent on imported crude oil as a significant portion of its oil imports still come from the Gulf ultimately making such disruptions particularly consequential and has immediate economic ramifications


Archives

Current Issue

Opinion

Facebook Twitter Google Plus Linkedin Subscribe Newsletter

Twitter