After opening multi-retail, aviation and a segment of broadcasting sectors and reducing subsidies, rail fare revision is next on the government’s ‘to do’ list, a senior Government official revealed.

The senior government official, who didn’t reveal his identity, told Business Line, “After FDI liberalisation and subsidy restructuring, rail fare revision is next on the ‘to do’ list.”

The increase rail fares will be in addition to the imposition of service tax on first class and air-conditioned rail travel. Service tax on first class and air-conditioned travel is all set to take effect from 1st of October.

Freight services and air-conditioned passenger services fares will be hiked by 3.7 per cent, while auxiliary services provided at stations, such as parking and catering, will be increased by 12.36 per cent.

It is worth mentioning here that fares in general class of the rail have not been increased for nearly eight years, mainly due to opposition from the government’s own allies like Trinamool Congress, which recently withdrew support to the government on FDI in retail and reduction in fuel subsidies issues.

The government is reportedly also mulling over a plan to set up a Tariff Regulatory Authority, as recommended by the Rakesh Mohan Committee, to regulate the Railways as a monopoly provider of rail services in the country.

Railways require additional funds to continue its massive modernization process, and deal with increased wage bill and soared input costs.