Exuding confidence in growth story of Railway sector, Railway Minister Suresh Prabhu hopes that the performance of ailing railways would improve with a clear vision. The Minister for this sought innovative ideas and futuristic vision to turnaround the Railways. Meanwhile, the minister ruled out the possibility of slashing rail fares as a result of the reduction in international crude fuel prices and also to any possibility of privatization in the rail sector. However, he emphasized upon the need to private capital to improve the infrastructure of Indian railways.
The minister further stated that with losses mounting for the sector, the ministry is not implementing the Fuel Adjustment Component (FAC), which provides for half-yearly exercise of adjusting passenger fares on the basis of market rates of diesel. However, he revealed that FAC adjustments were scheduled this month, but the ministry decided to put off this exercise with the view that railways would still be able to save some revenue on account of fuel costs.
Separately, the minister has formulated a six-member task force under the chairmanship of Member (Traffic) to generate advertising revenue by leveraging spaces in coaches, wagons, trains and railway stations. Additionally, a second task force, under the chairmanship of Member (Engineering)-which has representation from the KPMG and Earnest and Young - have been set up by the ministry to implement on strategies delegated to financial powers within the organization. Both of these groups are expected to submit their reports by December 26.
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