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

Maharashtra adopts hybrid model for Census 2026 data collection

The government has initiated preparations for Census 2026 in Maharashtra, introducing a hybrid approach that combines optional self-enumeration with comprehensive door-to-door data collection to ensure complete coverage across the state.   According to senior officials, the Self-

What the nine Indian Nobel winners have in common

A Touch Of Genius: The Wisdom of India’s Nobel Laureates Edited by Rudrangshu Mukherjee Aleph Books, Rs 1499, 848 pages  

Income Tax dept holds Ghatkopar Outreach on new IT Act

The Income Tax Department organised an outreach programme in Ghatkopar, Mumbai, to raise awareness about the key features of the Income Tax Act, 2025, effective April 1, 2026. The initiative is part of a nationwide effort to promote taxpayer awareness, simplify compliance, and strengthen a transparent, eff

Making AI work where governance is closest to people

India’s next governance leap may not solely come from digitisation. It will come from making public systems more intelligent, more adaptive, and more responsive to the dynamics at the grassroots. That opportunity is especially significant at the panchayat level, where governance is not an abstract po

Borrowing troubles: How small loans are quietly trapping youth

A silent crisis is playing out in the pocket of young India, not in stock markets or government treasuries, but in smartphones of college students and first-jobbers who clicked on the Apply Now button without reading the small print.  A decade ago, to take a loan, you had to do some paperwor

A 19th-century pilgrim’s progress

The Travels of a Sadhu in the Himalayas By Jaladhar Sen (Translated by Somdatta Mandal) Speaking Tiger Books, 259 pages, ₹499.00  


Archives

Current Issue

Opinion

Facebook Twitter Google Plus Linkedin Subscribe Newsletter

Twitter