The Indian railways might be planning to announce an increase in fares after several years of stagnation in the fares mainly due to political considerations.

Railway Minister Pawan Kumar Bansal is planning to announce a hike in fares and there are indications that the announcement might come even before the Budget Session. The hike will be the first by the Indian Railways in ten years.

In the previous year, the then Railway Minister and Trinamool Congress leader Dinesh Trivedi was planning to increase fares but he was forced by his party to resign over the matter. Mamata Banerjee had asked the ruling congress party that her nominee to the Cabinet, Dinesh Trivedi should be removed from his post. Ms Banerjee demanded that Mr Trivedi must be removed soon after the presentation of the Union Budget in the Parliament.

An increase of 20 per cent was announced in AC I and AC II class fares but were rolled back by Mukul Roy, who had replaced Trivedi as the country's Rail Minister. Estimates have shown that the Indian Railways lose about Rs
21,000 crores every year on passenger fares. It is to be seen if the Ril Minister plans to change the fares of sleeper class.

Many believe that he minister is preparing for an increase spanning all categories.