AC, Mail, Express fares cut by 2%

NEW DELHI: Railway Minister Lalu Yadav on Friday announced fare cut in AC and mail express trains by 2%. He also announced the introduction of
43 new trains and kept freight rates unchanged.

Railways would introduce wagons with higher capacity. Railways to spend Rs 23,000 crore in 2009-10.

He presented an interim budget this time as elections are due soon and by convention the presentation of the regular budget in an election year is left to a new government.

The regular rail budget presented last year reduced fares across the board besides focusing on hygiene, punctuality, new routes, better coaches and mobile ticketing.

Lalu presented all the five previous rail budgets for the United Progressive Alliance (UPA) government since 2004, during which he set a record of sorts in terms of generating revenues despite lowering fares.

The railways posted a 13.17% increase in its total earning in April-January 2009 at Rs 64,876.34 crore, compared to Rs 57,327 crore in the corresponding period last year. While its freight revenue during this period jumped by 13.64% to Rs 44,016.26 crore, passenger revenue went up by 11.82% to Rs 18,042.82 crore.

Railways have not increased passenger fares in the past four years despite an increase in operating costs including spike in global crude oil prices, resulting in much higher diesel prices.

The country's largest transporter has replaced the old diesel engines with more fuel efficient and powerful locomotives, and is also focusing more on electric locomotives. Last year, the railways had cut AC-I and AC-II fares by up to 7%.

Earlier in the morning Lalu said, "We cannot make many new programmes in this budget, but be assured the welfare of common people will be taken care of. No, I will not raise fares," Lalu Prasad told reporters as he proceeded to parliament house from his office at Rail Bhavan.

"Do not try to connect any announcement with the forthcoming elections. Elections come and elections go. We have always been people-friendly even in tough times like these and will continue to do so if we come back to power again," he said. "But be assured that we will not hurt common people."

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