The interim Railway Budget for 2014-15 today contained reforms proposals for opening the sector to domestic and foreign investors and a tariff authority to rationalise fares and freights, end cross subsidisation and enlarge the dynamic fare scheme.
The vote-on-account Budget, presented by Railway Minister Mallikarjun Kharge, do not contain any revision of fares and freight rates in keeping with the tradition of not tinkering with them since it is for the first four months of next fiscal.
The Budget proposed introduction of 18 new premium trains, 38 express trains and 5 passenger trains.
Kharge, who took charge of the ministry after the exit of Pawan Kumar Bansal eight months ago, said apart from attracting private investment from domestic sectors, a proposal is under consideration to enable foreign direct investment (FDI) to foster creation of world-class rail infrastructure.
He said an independent Rail Tariff Authority is being set up to advise the government on fixing of fares and freight rates.
"This would lead to an era of rationalisation of fares and freight structures for improving the fare-freight ratio and gradually bringing down cross-subsidisation between different segments," said the Minister who had to cut short his speech and lay it on the table admist din over Telangana issue.
