The Indian Railways is set to implement a hike in fare from Monday with a focus on improving services for the passengers and completing modernization programmes.

The Indian Railways is planning to improve safe on trains for millions of passengers in the country. The increase in fare is expected to generate a further Rs 6,600 crore for the government. This is the first hike in trail fare in several years.

Railway Minister Pawan Kumar Bansal will implement 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.