UPA train derails but rail fares go up by over 14%, freight 6.5%

On a day the UPA government was voted out of power, the railway ministry announced a 6.5% increase in the freight rates and a flat 14.2% in passenger fares. The revised fares would also apply to tickets issued in advance for journeys to commence on or after May 20, 2014. The increase was due from April 2014 but could not be implemented due to the model code of conduct during polls.

For freight rates, the increase in the fuel adjustment component (FAC) accounts for 1.4% increase and for passenger fares, the FAC accounts for 4.2% increase. "Withdrawal of short lead concession in charging of freight for all traffic booked up to 100 kms. Minimum distance for charge has been increased from existing 100 kms to 125 kms. The number of low rated classes has been reduced from four to three. Certain concessions in case of some of these commodities have also been withdrawn," the press statement issued in this regard said.

Second Class Monthly Season Ticket (MST) fares of suburban and non-suburban would be charged on the basis of 25 single journeys instead of approximately 15 single journeys. Fares of first class MST will be charged four times the second class fares.

There would be no change in the charges for reservation fee, superfast surcharge. Service tax will continue to be levied as applicable as per instructions issued in this regard, a statement from the rail ministry said. In the case of tickets already issued at pre-revised rates, the difference in fares and other charges on or after May 20, 2014 will be recovered either by TTEs on the trains or by the booking and reservation offices.