Railway fare may be costlier as Govt proposes safety cess

Written By:
Subscribe to Oneindia News

The government is likely to implement a 'safety cess' to increase revenues in the Railways. If the cess is imposed then passenger train tickets are likely to witness a marginal hike.

Railway fare may be costlier as Govt proposes safety cess

The cess is likely to be fixed at less than 2% of the total fare amount. Reeling under a Rs 32,000 crore debt burden, this move could ease the woes of the Railways to a certain extent.

A safety cess on passenger tickets is under consideration," Union Railways Minister Suresh Prabhu had told reporters. He however did not specify when the cess would be introduced.
A safety cess was last levied in 2002 during Nitish Kumar's term as the railway minister to service a special fund of Rs 17,500 crore. The fund was set up to take up several tasks, including restoration of old bridges, besides signaling and track modernisation works.

OneIndia News

Please Wait while comments are loading...