Tuesday, March 20, 2012

Those rail fare hikes

    As the unfortunate spectacle of 2013 railway budget draws to a conclusion ,this is what was proposed that caused such outrage.
The Railway Budget had announced a fare rise of two paise per km for suburban and ordinary second class travel. Mail and express second-class fare was proposed to be raised by three paise per km; for sleeper class by five paise per km; for A/C chair car and A/C 3-tier and first class by 10 paise per km; for A/C 2-tier by 15 paise per km and for A/C I by 30 paise per km.
...
The Budget proposals said they hoped to garner Rs 6,500 crore from the fare rise.
    Passenger rail fares were being raised after nine long years. Here is what has happened to crude oil prices in the last nine years.

Source: Indexmundi

    And, here is the price of rice, another commodity all Indians use on a daily basis.


Source: Indexmundi
Update : Price of rice per Metric ton

    In the face of rising costs, increasing fares was a rational choice. If we want to support our ambitions of building a High speed rail network, better freight lines and modern train stations, this streak of mindless populism has to end.

No comments:

Post a Comment