There could be a hike in railway fares, say experts

Though not immediate, hike a possibility with safety cess being considered on tickets; only MUTP-3 likely to get central funding

For the first time in 92 years, the budgets – Union and Railway – will be merged and announced on the same day, February 1.

Although elections are on the anvil in several states and municipal corporations across the country, it is possible that apart from only one developmental project – Mumbai Urban Transport Project (MUTP)-3 – getting funding, safety cess could be added to local and long-distance fares, leading to a possible hike.

A couple of months ago, Prime Minister Narendra Modi had laid the foundation stone for MUTP-3. This has got the nod from all quarters, so railway sources have said there was a possibility of it getting funding in the budget.

The Rs 11,440-crore project involves expansion of the suburban corridor. The local train lines will expand to include Panvel and Karjat (28 km), Airoli and Kalwa (3 km) and quadrupling of Virar-Dahanu (63 km). Besides, 47 new 12-car rakes – most likely air-conditioned ones – would be brought in.

Apart from this, there is a possibility of a 'safety cess' being created that could mean a hike in fares. Officials claim that although there is a low possibility of a direct hike being announced, chances of flexi-fares and dynamic pricing can be extended on long-distance trains. This would mean that depending on the demand for that particular train, fares could change, though it wouldn’t rise as steeply as 100 per cent.

"Looking at the number of rail accidents, there is need for safety cess to be created," said AV Shenoy, member, Mumbai Vikas Samiti.

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