RAILWAY FARES HIKED BY 14.2 PERCENT , SHIPPING RATES BY 6.5 PERCENT

Get ready to pay more for train travel. The Narendra Modi government administered its first dose of harsh economic medicine on Friday in the form of a sharp increase in rail fares that could presage a budget that will eschew populism in favour of fiscal consolidation.

While the Opposition protested against such a move weeks before the government is expected to unveil its railway budget, the Modi administration defended itself, saying it was only implementing a decision that the previous UPA dispensation had cleared and then frozen.

The Congress party attacked the increase, accusing the government of adding to the burden on the common man in a month of coming to power..."This comes at a time the prices of onions and potatoes have skyrocketed. Also, there is concern about delay in the monsoon and the ongoing problem in Iraq is also having an effect on global crude prices," party spokesperson Ajay Maken told reporters.

The government has increased railway passenger fare by 14.2 percent and shipping charges by 6.5 percent on Friday. The increased rates will come effect from 25th june.

The hike in the passenger fare and freight charges was expected as railway minister Sadanand Gowda hinted the same on Tuesday. Speaking to reporters, he said, "I will discuss the fare issue with the PM. A decision will be taken after the discussion."

Ahead of the rail budget the railways has sought significant increase in gross budgetary support.

Ahead of the rail budget, likely to be presented next month, the railways has sought significant increase in gross budgetary support. In the interim budget, railways got Rs 29,000 crore from the Center's kitty as plan support.

The move may act as a spur for much-needed investment in infrastructure.