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Rail passenger fares hiked by 14.2%

In a major blow to the millions of train travelers in India, the Narendra Modi government, which had promised to reduce inflation, on Friday did exactly the opposite as it increased the passenger rail fares by 14.2% and freight fares by 6.5%.

The Opposition has slammed the government for increasing the fare when the government is expected to unveil its railway budget after few weeks but the government justified the decision saying that this decision was cleared by previous UPA dispensation and the government had only cleared it.

The Congress party said that the increase in rail fare will prove burdensome for the common man.

"This comes at a time the prices of onions and potatoes have skyrocketed. Also, there is concern about delay in the monsoon and the ongoing problem in Iraq is also having an effect on global crude prices," party spokesperson Ajay Maken told reporters.

"This hike will affect prices of food items, coal, and hence we strongly condemn it," he added. Congress and other parties demanded that the government must rollback of the hike immediately.

The decision to raise fare will be effective from June 25. The government has said that it will help Indian Railways raise an additional Rs 8,000 crore in the financial year. It is to be noted that successive governments have shown reluctance to increase the passenger fares and that make Railways a loss-making utility.

For his Modi had already said few days ago that he was committed to take tough and unpopular decisions to add strength to the country?s economy that had recorded under 5% in the last two years.

"I am well aware that my steps may dent the immense love that the country has given me," he said last weekend. "But when my countrymen realise that these steps will result in getting the financial health back, then I will regain that love."