New Delhi: Railway Board Chairman Vinay Mittal has said that a fare hike will bolster the railway finances to a limited extent and the urgent need was to consolidate rather than expand.
When asked if the current model of railways is a financially viable model, he said, "Trains run but we don't earn revenue because they are necessary."
"We fulfill a huge social responsibility. There are still areas in the country where people have not seen train in their entire life. There is a huge social cost," he added.
He further said, "There are four to five sources. One is a gross budgetary support. The government gives money. We have to generate our own resources as well. How do we generate through freight and fare and PPP? You have to increase the capacity."
"Even if you have a fare hike, the question is, how much can you do? The poorest of the poor have a certain affordability... and the government has a duty towards them."
But the Railways continues to announce new trains and projects are being distributed. When asked where will the money for those projects come from, the Railway Board chairman said the ministry has been very "circumspect this time" as far as the projects are concerned.
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