The Railway Ministry is working on a proposal to increase passenger fares.

This was told to the Railway Convention Commitee (RCC) - a Parliamentary Committee - in June by the then Railway Board Chairman Mr Viek Sahai. Mr Sahai, who retired on June 30, was also holding additional charge of Member (Traffic).

The report was tabled in Parliament on Tuesday.

"I would like to bring to your notice that even if we increase our fare(s)-I think the time has come to do that and we are working on it, which is an inflationary kind of decision...." Mr Sahai told the RCC on June 10. Mr Sahai also added that the increase "can be to the extent of 10 or 15 per cent".

Such an increase "will give (Railways) about Rs 2000 or Rs 2500 crore if we (are) able to increase the fare all across the people who are travelling. If we exclude some, then it will come down to that extent."

When contacted by BL, the Ministry sources declined to comment on the issue. Indian Railways passenger fares are highly subsidised from freight earnings.

In 2008-09, even the high-end first and second air-conditioned (AC) passengers of the Indian Railways did not pay fully for the services - only passengers availing the AC three-tier services and AC chair car services covered their operational costs.

Rail passenger fares have not been revised upwards significantly for close to ten years now.

During the last few years, Railways did increase reservation fee, cancellation fee, converted mail and express train into superfast trains attracting superfast charges, increasing tatkal charges (last minute bookings).

The Planning Commission, Finance Ministry, Parliamentary Consultative Committee have asked Railways to revise passenger charges.