(a) the details of increase in passenger fares and freight
charges on various classes of passenger trains and goods
trains since April 1, 1998;
(b) the total amount earned by the Government by this hike;
(c) the reasons for increasing the fare; and
(d) the total subsidy/loss on account of freight
equalisation incurred so far by the Railways?
MINISTER OF STATE IN THE MINISTRY OF RAILWAYS (SHRI DIGVIJAY SINGH)
(a) to (d) A statement is attached.
STATEMENT REFERRED TO IN REPLY TO PARTS (a) TO (d) OF LOK
SABHA UNSTARRED QUESTION NO.1785 BY SHRI CHANDRESH PATEL AND
SHRI SUBODH RAY TO BE ANSWERED ON 8.3.2001 REGARDING HIKE IN
GOODS AND PASSENGER FARES.
(a) Changes made in Passenger fares since June 20th 1998 onwards.
Date of effect
20.6.1998 i) The fares for Second Class (Ordy) were revised as under:-
Distance Slab Increase
1 – 50 km Re.1 51 – 100 “ Rs.2 101 – 300 “ Rs.3 301 & above Rs.5
ii) The fares of Sleeper Class (Ordy) and First Class (Ordy) were increased as under:-
Distance Slab Increase
1 - 750 km Rs.5 751 – 1500 “ Rs.10 1501 & above Rs.20
iii) The fares for the following class were increased as under:
1- 501- 1001- 1601- 2501 & Km 500 1000 1600 2500 above Class (Rs.) (Rs.) (Rs) (Rs) (Rs)
Second Class 5 8 12 18 25
(M/Exp) 10 15 25 35 45 Sleeper 20 30 40 50 60 Class(M/Exp) 20 30 40 50 60 First Class 40 60 80 100 120
(M/Exp) 60 90 120 150 180 AC Chair Car 180 270 360 450 540 AC –3 Tier AC –2 Tier AC First Class
iv) The fares of Rajdhani/Shatabdi express trains were increased by 20 percent for all distances.
v) The fares of Second class MST were increased as under:
Distance Slab Increase per MST
1 – 50 km Rs.5 51 – 100 “ Rs.10 101 & above Rs.15
The fares of First class MST was fixed at four times of the fares of the Second class MST. The quarterly Season ticket was fixed at 2.7 times of the fares of MST.
vi) The fares of Metro Railway Calcutta were fixed as under:
Distance Fare (Rs)
1 - 5 km 3 6 – 10 “ 5 11 kms & above 7
vii) In Mass Rapid Transit System (MRTS), Chennai, the existing surcharge of 50 paise per passenger in 2nd class was revised to Rupee 1. In First class the surcharge was fixed at Rs.2 per passenger.
viii) Platform ticket was increased from Rs.2 to Rs.3 per person.
1999-2000 1. Fares were rationalised on the basis of new relativity as under:-
1.4.1999 Ordinary Service Index of fare
Second Class 100 Sleeper Class 155 First Class 525
Mail/Express Services Relativity
Second Class 100 Sleeper Class 155 AC Chair Car 300 AC 3-Tier Sleeper 450 First Class 525 AC 2-Tier Sleeper 720 AC First Class 1440
1. The all inclusive fares of Rajdhani/Shatabdi Express trains were fixed on the basis of revised fare structure.
2. No increase was made in the fares of Second Class Ordinary, Second Class Mail/Express and Season Tickets(both Second and First Class) - no increase in the fares of Metro Railway, Kolkatta and MRTS, Chennai.
2000-2001 No increase in passenger fares
1.4.2000 Changes made in Freight Traffic since June 20th 1998
1998-99 No general increase was announced in the freight rates. The freight rates 20.6.98 for
(i) Coal
(ii) Cement
(iii) Iron or Steel were adjusted marginally through modification of taper.
The classifications were upgraded by one step in respect of
(i) Iron Ore,
(ii) Ores Common NOC (Baryte and Alunite),
(iii) Manganese Ore (Fines & Powder),
(iv) Caustic Soda,
(v) Timber NOC,
(vi) Rubber Crude and
(vii) Soda Ash.
The classifications were downgraded by one step in respect of
(i) Gypsum (Lumps)
(ii) Gypsum (Powder)
(iii) Lime Stone & Dolomite.
1999-2000 The Freight rates of all commodities were raised by 4%(four percent) at 1.4.1999 all distances.
The classifications of Washed Coal from (135A to 140 T/L) & (135B to 145 W/L) and Caustic Soda, liquor from (130 to 135 T/L) & (135 to 140 W/L) were raised by one step. However, the classification of Washed Coal was reversed to 135A (T/L) & 135B (W/L) w.e.f.1.12.1999.
A concession of 25 percent in freight rates of all commodities were given for freight traffic hauled for distance of 50 km and less. There was no change in the minimum distance for charge.
2000-2001 In the Railway Budget proposals implemented w.e.f.1.4.2000, the freight 1.4.2000 rates of Grains & Pulses (classified under 95M Trainload and 100M Wagonload), Kerosene, LPG, Sugar, Edible Salt (Salt NOC), Edible Oils (Oil Div.E), Fruits & Vegetables and Urea were not increased. The freight rates of all other commodities were increased by 5 (Five) percent at all distances, subject to revision of classification of certain commodities as under:-
Commodities Trainload Wagonload
From to From to
Chemical Manure Div.’A’ 105 115 110 125 Div.’B’ 85 100 95 110 Div.’C’ 85B 85 90A 90 Livestock - - 180 220 Oil Seeds - - 100 130
The classification of the following commodities were downgraded as under:-
Commodities Trainload Wagonload
From to From to
Coal@ 135A 130A# 135B 130B Cement 150A 145A# 150B 145B Iron Ore 125 120 130 125 Limestone & Dolomite 125 120 130 125 Petroleum & other hydro 280 270# 300 300 Iron & Steel 210A 200A 210B 200B Carbon oils (dangerous 300 290# 300X 300X And non-dangerous)
Note:- # - New Class @ = Coal for household consumption will continue to be charged at existing class rate.
(b) The Passenger and Freight earnings are as under:-
Passenger Traffic
Number of Passengers (in millions) Passenger Earnings (Rs.Crs)
1998-99 1999-00 %increase 1998-99 1999-00 %increase
4411 4585 3.9 8527 9556 12
Freight Traffic
Tonnes Originating(in millions) Freight Earnings(Rs.Crs.)
1998-99 1999-00 %increase 1998-99 1999-00 %increase
421 456 8.3 19676 21755 10.6
The additional earnings from both passenger and freight services has come from the growth of traffic as well as hike in fares and freight rates.
(C) The reasons for increasing the fares are to cover the increases in cost of inputs and also to reduce the element of cross-subsidisation.
(d) Railway’s losses are as under:- (Rs.in Crs.)
Year Loss on Coaching Loss on essential Total %age inc. services commodities carried below cost
1998-99 4165 110 4275 - 1999-00 4583 156 4739 10.9%
Railways make good these losses by charging certain commodities and class of passengers at a rate higher than the average cost, approximately up to the extent the traffic can bear.
Although railways follow the policy of cross subsidization, railways do not pursue any policy of freight equalisation.