Railways have increased the passenger fare by 14.2 percent in all classes and freight charges by 6.5 percent. The revised rates will be effective from 25th of this month.
Under the passenger fare hike, a flat 10 percent increase has been done in all classes and an additional 4.2 per cent increase under fuel adjustment component linked revision scheme.
According to an official release, the hike has been done as part of interim budget presented by the previous government. But the implementation of revised rates was withdrawn by the UPA regime because of the elections.
Talking to reporters in New Delhi, Railways Minister Sadananda Gowda said that he has only implemented the order of previous government related to fare hike . He said, meeting the annual expenditure of Railways will not be possible unless the revised rates as finalized by previous government is implemented.
Meanwhile, Congress and CPI(M) have demanded immediate roll back of the hike. Congress spokesperson Ajay Maken told reporters in New Delhi that the increase in fare will put a huge burden on the common man.
CPI(M) Polit Bureau member Brinda Karat condemned the rail fare hike saying that the move will affect the large labour class at a time when they are already facing relentless price hike.
Former Railway Minister Nitish Kumar said that the proposal of hike should have been made in the Railway Budget.
Another Former railway minister and RJD Chief Lalu Prasad termed it biggest hike ever in Railway fare and freight in one go.
Strongly opposing the hike Tamil Nadu Chief Minister Jayalalithaa today urged Prime Minister Narendra Modi to roll back the increase in the interests of the poor and the middle class people. Talking on the same pitch Odisha Chief Minister Naveen Patnaik said this would further aggravate inflation.
Critisising increase in the fares Trinamool Rajya Sabha MP and spokesman Derek O'Brien said that commen people will be over-burdened.
On the other hand, BJP has justified the government decision saying that the Centre has only implemented the UPA government policy. Talking to AIR, party spokesperson Shahnawaz Hussain said that the policy related to hike was approved by the previous government in the budget in which it was said that rail fare will be adjusted as per the price of Oil.