Your train ticket prices may now be linked to inflation
Currently, the Railways recovers only 57% of the passenger cost.
The central government is planning to introduce Inflation-based fare model in Indian Railways. With this, the ticket prices may surge soon!
The idea of the model was proposed during Rail Vikas Shivir. The three-day event was inaugurated by Prime Minister Narendra Modi. During the event, there were 36 such ideas in which Modi had shown interest.
As per the new model, the ticket fares will be linked to Wholesale Price Index. This means, with the rise in the inflation, the ticket prices will also surge and with the decline in inflation, the prices will be cut down.
The idea was proposed considering that currently, the Railways recovers only 57% of the passenger cost.
On December 11, Railways has mulled to increase fares in a bid to raise resources after the Finance Ministry rejected its proposal of a special safety fund.
According to the proposal, a safety cess will be levied to generate funds for strengthening track and upgrading signalling system and elimination of unmanned level crossings among other safety-related works to prevent mishaps, a PTI report had said.