Zee Media Bureau
New Delhi: Railway minister has hiked the passenger fares by 14.2 percent effective from midnight tonight.
The freight fares have also been hiked by 6.5 percent.
"The hike in both passenger and freight fares are inevitable as the financial position of railways is not so good. However, the quantum of hike is yet to be finalised," a senior Railway Ministry official had said a couple of days ago.'
The UPA government had left passenger fares unchanged in the interim railway budget in February ahead of the general elections, presenting a vote-on-account leaving the difficult job of managing the national transporter's weak finances to the next government.
Railways had announced hike on May 16 in both passenger fares and freight rates by 14.2 percent and 6.5 percent respectively from May 20. However, the hike notification was put on hold later in the day leaving the decision to the next Railway Minister.
Railways was aiming to garner Rs 8000 crores through the increase in passenger and freight charges last month.
Currently, Railways is facing severe financial crunch with passenger subsidy touching Rs 26,000 crores.
With PTI Inputs
