PTI reported that faced with mounting deficit of over INR 20,000 crore in the passenger segment, Railways is keen on raising passenger fares between 5 to 10 paise per kilometer in the coming months to generate about INR 4,000 crore revenue.
The hike could come close on the heels of Railways finalizing the broader contours of the proposed Rail Tariff Authority, which would be placed before Cabinet in January.
Mr KJ Surya Prakash Reddy minister of State for Railways said that "The passenger fares should be hiked by 5 paise to 10 paise per km in the Rail Budget. The financial condition of Railways is not good. We need funds, otherwise Railways will not survive."
Railways has incurred a loss of INR 22,000 crore in the passenger segment this year, an increase of deficit of INR 4000 crore from the last year.
A senior railway official however, said that "A decision is yet to be taken whether to increase the passenger fare before the Rail Budget or announce it in the budget."
The official said that "It is likely to be between 10% and 15%." something which former Railway Minister Mr Dinesh Trivedi had proposed in the last Rail Budget.
Reviewing the performance of Railways, the Prime Minister's Office has asked the Chairman Railway Board to finalize and submit its recommendations on the constitution of proposed RTA by December 31st.