Railways awaits PM's nod for hike in passenger fare

I will discuss the fare issue with the Prime Minister. A decision will be taken after discussion with the PM," Gowda said.

Seeking a significant rise in gross budgetary support, Gowda, along with Minister of State for Railways Manoj Sinha and senior railway officials, met Finance Minister Arun Jaitley on Tuesday ahead of the budget to be presented in the first week of July.

The national transporter is facing a loss of about Rs 900 crore per month in passenger segment.

The Indian Railways had on May 16 announced a hike in both passenger fares and freight rates by 14.2 percent and 6.5 percent respectively. However, the hike notification was put on hold later in the day leaving the decision to the Railway Minister.

When asked about the outcomes of his meeting with Jaitley, Gowda said, “It was a fruitful meeting with the Finance Minister who suggested some measures which will be reflected in the rail budget. We have sought more budgetary support. There is a need for more funds for national projects.”

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India eyes FDI in Railways

India is set to open its state-run railways for foreign direct investment (FDI) to expand its network and modernise its operations, Commerce and Industry Minister Anand Sharma said here Monday.

"We are looking at opening up FDI in railways, while it has been increased in the defence sector to 49 percent from 26 percent with technology transfer," Sharma told reporters on the sidelines of a trade meet.

As one of the world's largest transport networks, covering 65,000 km and 7,500 stations, the railways ferries 25 million passengers daily in about 11,000 trains across the country.

A top official was quoted recently in a section of the media that the government was open to 100 percent FDI in railways and looking for about $10 billion FDI over the next five years to improve and expand its infrastructure, spanning suburban corridors, high-speed trains and freight corridors.

"We are also considering liberalising the construction sector further and allowing FDI in the realty sector," Sharma said after inaugurating the three-day partnership summit, organised by the Confederation of Indian Industry (CII).

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