Udaipur, December 18,2024 - The Parliamentary Standing Committee on Railways has recommended a review of air-conditioned (AC) class fares to reduce financial losses for Indian Railways while keeping general class travel affordable.
The committee highlighted the significant gap between the revenue generated from passenger and freight services. For the year 2024-25, passenger services are expected to earn Rs 80,000 crore, while freight services are expected to bring in Rs 1.8 lakh crore. This imbalance is putting pressure on the financial health of Indian Railways.
Led by BJP MP C.M. Ramesh, the committee emphasized that while general class fares should remain affordable for the public, AC class fares must be adjusted to cover the operational costs. This move aims to prevent further revenue losses. The committee also suggested reviewing passenger train expenses to help maintain affordable ticket prices.
The Ministry of Railways noted that annual discounts, including a 46% reduction on tickets, result in a loss of Rs 56,993 crore. This makes it difficult to reinstate senior citizen concessions at this time.
The committee also raised concerns about the inefficiency of catering services and recommended reducing unnecessary costs. It suggested offering better quality food at competitive prices while cutting down on the financial burden of catering services.
Amid a heated debate in the Lok Sabha regarding railway privatisation, the committee recommended more private sector involvement in railway infrastructure. However, some lawmakers viewed the Railways Amendment Bill 2024 as a step toward privatisation. In response, Union Railways Minister Ashwini Vaishnaw defended the bill, stating that it was not aimed at privatising Indian Railways.
Source: Media Reports
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