You may have to pay more for train travel as cabinet clears setting up of rail regulator
Rail fares are likely to go up in coming months, with the Union cabinet on Wednesday having cleared the long-pending proposal to set up a Rail Development Authority, which will determine goods and passenger tariffs.
Passenger fares have remained hugely subsidised in India, with annual losses in the passenger segment estimated at around Rs 30,000 crore. For the price of a kilogram of sweets, one can travel 1,166 kilometer from New Delhi to Patna in the general unreserved class.
Seen as a big reform measure, the regulator will undertake the task of fixing tariffs on the basis of prevailing market prices and other parameters, including the cost of travel.