GD Topic: Railway Budget 2012 - The Good, the bad

 | March 15,2012 12:51 pm IST

Railway Minister Dinesh Trivedi on Wednesday hiked passenger fares across the board, following up on the increase in freight charges announced immediately after the recent assembly elections.


The increase ranges from a mere two paise per km for second class tickets to a maximum of 30 paise per km for AC first class tickets.

While the hike might look too mere, it is actually 35% or even more in some cases. Suburban tickets for a distance of 25km, for instance, would be up from the current Rs 7 to Rs 10, a 42% jump.


Trivedi also stated in his speech that railway fares would in future have a 'fuel adjustment component', which would rise and fall in line with diesel prices, thereby ushering in dynamic pricing of tickets.


Discuss this topic. Post your views as comments and collect more and more points for your b-school GD round.