Decision on fare hike, FDI in rail sector soon: Gowda

A decision on hiking passenger fares and on allowing foreign direct investment in railways is likely to be taken before the Rail Budget, the government said today.

A discussion on these matters is already on and a decision regarding them will be taken shortly, Railway Minister Sadananda Gowda said.

"We are discussing the matter and, within three-four days, will come to a conclusion (regarding the possible fare hike)," Gowda said on the sidelines of a conference of senior railway officials here.

He is likely to meet Prime Minister Narendra Modi in a day or two to discuss the fare hike issue.

Faced with an acute cash crunch, the Railway Board has proposed a 14.2% hike in passenger fares along with a 6.5% increase in freight rates.

The Railway Budget is likely to be presented in the second week of July.

Meanwhile, asked whether FDI will be allowed in railways, Gowda said, "Practically, we are short of resources, which is well-known to the people of the world. So, some resource mobilisation should be taken as being one of the priorities of railways. I want to have discussions with the commerce ministry.

"Yesterday, too, I had a small discussion with Commerce Minister Nirmala Sitharaman in this regard."

Talking about his meeting with Sitharaman, Gowda said, "She asked me to come up with suggestions and we will discuss the matter and go ahead. In a day or two, I will have a meeting with the commerce ministry and will come up with a clear (stand) as far as FDI is concerned."

Railways could benefit from FDI in high-speed trains, station development and last-mile connectivity.

Asked what proportion of FDI will be allowed in the rail sector, Gowda said, "It will be clear only after discussions. Certain policy matters and other issues are there which need discussion. FDI cannot be brought in a secret manner or put in cold storage. It has to be done in open.

Post new comment

E-mail ID will not be published
CAPTCHA
This question is for testing whether you are a human visitor and to prevent automated spam submissions.

EDITORIAL OF THE DAY

  • The Constitution defines complimentary roles for executive and judiciary

    For avid constitutionalists, it is important to remember that while the executive and the judiciary constitute two major pillars of any democratic ord

FC NEWSLETTER

Stay informed on our latest news!

INTERVIEWS

GV Nageswara Rao

MD & CEO, IDBI Federal Life

Timothy Moe

Goldman Sachs

Chander Mohan Sethi

CMD, Reckitt Benckiser India

COLUMNIST

Urs Schöttli

Hong Kong’s democratic dilemma

The 19th and 20th centuries were very unkind to China. ...

Purnendu Ghosh

Intellectual capital in life’s second innings

Many retired people find it hard to slow down in ...

Bubbles Sabharwal

The importance of looking at the bright side

Now here’s the thing. When your body defies gravity, it ...

INTERVIEWS

William D. Green

Chairman & CEO, Accenture