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Railways won’t raise fares after price hike
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NewsByte on 04 June, 2008 02:23:23
 
By Our Correspondent
New Delhi
June 4: Taking the additional burden of Rs 660 crores for financial year
2008-09, following the hike in price of diesel announced on Wednesday, the
Railways decided not to increase passenger fares and the freight rates.
"The burden of the petroleum price hike will not be passed on to the rail
users. Instead, we will try to meet the loss by increasing our productivity,"
said a senior railway official.
According to officials, the Railways consume around 2.27-billion litres of
diesel every year, which costs the ministry around Rs 8,000 crores.
With the financial year burden working out to be around Rs 660 croes, the
Railways will actually have to bear Rs 559 crores, for the remaining 10 months
of the current financial year.
Even though rail is more energy efficient than most other transport modes, the
enhancement of energy efficiency is an important issue for Railways to reduce
their contributions to climate change further as well as to save and enlarge
competition advantages involved, added an official.