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8 things you could see in the Budget

February 22, 2008
2. AC rail fares might be cut

The Railway Budget to be presented on February 26 is also likely to be 'people-friendly' and may make train travel more comfortable by upgrading several amenities.

A hike in passenger fares and freight rates is unlikely. In fact, all indications are that AC 2-tier and AC 3-tier fares might be lowered so as to ward off the challenge posed by low-cost airlines to the railways.

Railway Minister Lalu Yadav has not hiked passenger fares during the last four years and his 5th budget is also likely to bring cheer to ordinary passengers. Lalu has been successful in turning around the Railways without hiking passenger fares or freight rates.

In last year's Budget, a token reduction of Re 1 per passenger for second class travel in non-suburban ordinary passenger and non-superfast mail and express trains was introduced. There could be a minor reduction for this category.

Bonanza for Mumbai? Mumbaikars, who jostle for a foothold while commuting to offices in the crowded local trains, are likely to get some relief. In order to decongest the city's crowded local train network, the government is expected to announce the second phase of the Mumbai Urban Transport Project (MUTP) at an estimated outlay of Rs 4,510 crore (Rs 45.1 billion) in this year's Railway Budget.

Image: Commuters in a crowded local train in Mumbai.

Photograph: Indranil Mukherjee/AFP/Getty Images

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