Indian Railways has made a .“minuscule” hike in fares of up to 4 paise per km that will barely compensate 5 per cent of the ₹55,000-crore losses incurred during the year, Railways Minister Piyush Goyal said in Rajya Sabha on Friday.

Railways hiked passenger fares with effect from January 1 this year.

“As against ₹8,000 crore which was the loss on passenger services in 2004, in the current period we are losing about ₹55,000 crore on passenger services provided throughout the country. However, passenger fare increase is a susceptible subject.... A very nominal increase was done,” Goyal said replying to a query during Question Hour.

He said while there is no increase in fares in local services. In case of non-suburban services, a nominal increase of one paisa per km has been done, and in case of non-AC and AC classes in Mail and Express trains, the fare has been increased by two paise per km and 4 paise per km respectively.

“Costs keep going up. In fact, after (implementation of) the 7th Pay Commission, costs have gone up drastically, and therefore there is a... minuscule increase. Considering the cost and losses of ₹55,000 crore, this will barely compensate 5 per cent of ₹55,000 crore over the whole year,” the minister said.

He said as against the current ₹55,000 crore losses, Indian Railways suffered ₹8,000 crore losses in 2004.

Terming price increase a sensitive matter, Goyal said, .

“This is a drop in the ocean towards making railways self- sufficient. Otherwise, it will be impossible to improve or provide the services.”

Goyal said Indian Railways had been continuously upgrading its services and facilities. During the last 5.5 years, it has undergone significant improvement in level of services, punctuality, cleanliness of stations, safety track record and the replacement of old and worn-out equipment.

“Due to all these measures while on the one hand, we are improving the railways’ operations and its passenger services, there is obviously a huge cost element,” he said.

Goyal said there is no increase in suburban fare and the passenger segment of it comprised about 66 per cent of the total number of passengers.

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