Railways likely to hike passenger fares by 2-3%

The Indian Railways is mulling a 2-3 percent increase in its passenger fares to make up for rising fuel costs, sources told CNBC-TV18.

Also Read: Rail fare hike proposal under examination: Kharge

The fuel adjustment component (FAC) linked railway fares was announced in Budget 2103 was suppose to have been implemented from October 1. Post implementation, the Railways was expected to revise the passenger and freight tariff every six months, after taking into account the input cost and the prevailing market condition. Any change in FAC would thus alter fares.

The move is likely to come into force from October 7.