Addressing a gathering after flagging off Visakhapatnam-Chennai and Visakhapatnam-Shirdi weekly express trains here, the Minister said, "It is necessary to increase the train fares as the financial position of the Railways is not sound. It is essential to up the fares to take up developmental activities and to provide amenities to the commuters."
The commuters should appreciate this, he added.
He also said that Indian trains were the cheapest transport facility in the world, and at the same time, the number of mishaps on the tracks was very low.
Rs 25,000 crore worth railway projects were pending in Andhra Pradesh, he said, adding, it would take some time to clear them because of financial constraints.
Speaking to reporters at Rajahmundry, Reddy said there was a proposal to increase the rail fares in the next railway budget.