Diesel price hike may raise rail fare by 2-3%

March 24, 2013

Diesel_price_hike

New Delhi, Mar 24: Passengers have been spared an immediate hike in rail fares, but a sustained spike in diesel price may prompt railways make travel more expensive over the next six months.

"There is a policy now and the fuel adjustment component (FAC) is linked with energy and fuel prices and calculated accordingly ... We insulated passenger segment from the FAC in April as we did not feel it was appropriate considering there was a fare hike in January only. Railways had to absorb Rs 800 crore on account of this," railway board chairman Vinay Mittal told a press conference on Saturday.

Given the recent hike in diesel prices, the fares may go up by another 2-3% if FAC is linked to the basic fare. Hike in fares would be politically sensitive given the looming assembly polls in Rajasthan, Delhi, Chhattisgarh and Madhya Pradesh.

An increase would impact over two crore daily passengers.

In line with the new policy, the government proposes to review FAC twice a year. FAC is the variable component in rail fares and freight rates which will move based on changes in diesel and electricity rates.

Besides diesel, the cost of power has also gone up in recent months, increasing the burden on railways.

In fact, a large part of the gain from the January hike, which was expected to net Rs 6,600 crore, has been wiped out because of increase in fuel prices.

And, the state transporter could only make an additional Rs 3,000 crore. Diesel prices have increased by Rs 10.80 per litre in the past few months.

An increase in fares is, however, not going to wipe out losses of around Rs 24,000 crore that railway incurs on passenger services as the segment is cross-subsidized by freight and more than half the expenses for the state transporter is pension and wage bill, which is pegged to inflation and could rise up to 10% given the current trend consumer price inflation.

Railways had gone for passenger fare hike across the board from January 22. In the last three months, it could earn additional revenue of Rs 1,200 crore.

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News Network
July 26,2020

New Delhi, Jul 26: Union Home Minister Amit Shah on Sunday saluted the valour and grit of the Indian soldiers on the occasion of 21st anniversary of the 'Kargil Vijay Diwas'.

Shah took to Twitter and said that 'Kargil Vijay Diwas' is a symbol of India's proud, valour and steadfast leadership.

"Kargil Vijay Diwas is a symbol of India's proud, valor and steadfast leadership. I bow to the soldiers who, with their indomitable courage, drove the enemy from the inaccessible hills of Kargil and waved the tricolor there again. The country is proud of the heroes of India, who are dedicated to protecting the motherland," Shah tweeted (translated from Hindi)
The country is celebrating the anniversary of the 'Kargil Vijay Diwas'.

The Indian armed forces had defeated Pakistan on July 26, 1999. Since then, the day is celebrated as 'Kargil Vijay Diwas' to rekindle the pride and valour of the soldiers who took part in Operation Vijay.

The day marks the victory of Indian soldiers in recapturing the mountain heights that were occupied by the Pakistani Army on July 26, 1999, known as the Kargil War. 

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News Network
March 29,2020

New Delhi, Mar 29: The Centre on Sunday asked state governments and Union Territory administrations to effectively seal state and district borders to stop movements of migrant workers during lockdown, officials said.

During a video conference with Chief Secretaries and DGPs, Cabinet Secretary Rajiv Gauba and Union Home Secretary Ajay Bhalla asked them to ensure that there is no movement of people across cities or on highways as the lockdown continues.

"There has been movement of migrant workers in some parts of the country. Directions were issued that district and state borders should be effectively sealed," a government official said.

States were directed to ensure there is no movement of people across cities or on highways.

Only movement of goods should be allowed.

District Magistrates and SPs should be made personally responsible for implementation of these directions, the official said.

Adequate arrangements for food and shelter of poor and needy people including migrant labourers be made at the place of their work, the official said.

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News Network
June 23,2020

Jun 23: The U.S. government on Monday restricted charter flights from India, accusing the nation of "unfair and discriminatory practices" by violating a treaty governing aviation between the two countries.

Air India Ltd. has been making flights to repatriate its citizens during the travel disruptions caused by the Covid-19 outbreak, but also has been selling tickets to the public, the Transportation Department alleged.

At the same time, U.S. airlines have been prohibited from flying to India by aviation regulators there, the DOT said in its order. The situation "creates a competitive disadvantage for U.S. carriers," the agency said in a press release.

Air India is advertising a schedule that is more than half of pre-virus operations, the department said. "The charters go beyond true repatriations, and it appears that Air India may be using repatriation charters as a way of circumventing" that nation's flight restrictions, the U.S. agency said.

The order becomes effective in 30 days, the department said.

Indian airlines must apply to the DOT for authorization before conducting charter flights so that it can scrutinize them more closely, it said. The department will reconsider the restrictions once India lifts restrictions on U.S. carriers.

The action against India follows weeks of DOT restrictions against Chinese airlines after the U.S. agency accused that nation of unfairly banning American carriers in the wake of the virus. On June 15, the U.S. announced it would agree to allow four flights a week from China after it allowed the same number by U.S. carriers.

Attempts to reach Air India and the Indian embassy in Washington after business hours were unsuccessful.

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