According to railway officials, the hike could be anywhere between 10 and 12 percent or Rs 35 for every 500 km.
Sources further said that, with little assistance coming from Finance Ministry and the overall failures on its part to generate internal revenue, Railways have no options but to rationalise fares.
Meanwhile, the passenger fare segment is subsidised to the tune of Rs 16,000 crore. Moreover, Union Railway Minister Dinesh Trivedi has also earlier hinted at a possible fare hike, saying, "There is definite case to re-look at the fares which have not been touched for eight years."
Meanwhile, the proposal of hike in fares was not finalised yet as it was not cleared by Trinamool Congress chief Mamata Banerjee. Sources said that West Bengal Chief Minister Mamata Banerjee will have the last word on proposals for rises in railway fares in the coming Budget.