Railways have announced an across-the-board hike in fares with effect from the 21st of this month. Making the announcement in New Delhi yesterday, Railway Minister Pawan Kumar Bansal said the Second Class ordinary suburban fares have been raised by 2 paise per kilometer and Second Class ordinary non-suburban services by 3 paise per Kilometer. Second class Mail and Express train fares have been increased by 4 paise per kilometer and Sleeper class by 6 paise per Km. Mr. Bansal said the AC Chair Car and AC three Tier, fares will go up by 10 paise per kilometer.
Mr. Bansal said that an additional 6,600 crore rupees revenue will be generated per year out of which 1000 crore will be fetched by the AC Classes. He said the fare hike announced after a decade had become imperative to bring down losses.