The Indian Railways has set a new record this financial year by raising fares for the second time within six months. The increase amounts to one paise per kilometre in ordinary class for journeys exceeding 215 kilometres, and two paise per kilometre in non-air-conditioned coaches of mail and express trains as well as in air-conditioned coaches across all trains. There is no fare hike for suburban trains, and monthly season ticket holders have also been exempted. The additional burden has been imposed even before the start of Parliament’s Budget Session, following a fare hike introduced in July. In the July revision, general ticket fares were increased by one paise per kilometre, while non-air-conditioned coaches of mail and express trains and air-conditioned coaches across all trains saw a hike of two paise per kilometre. The Modi government justifies the fare increase as a move to rationalise charges in line with rising costs. Officials argue that over the past decade, the railway network has expanded significantly, the number of trains has increased, railway operations and safety have improved, and there has been a substantial rise in human resources. They claim that meeting the resulting financial burden has left no alternative but to increase fares. According to the authorities, the expansion of human resources alone has led to an additional expenditure of ₹1,15,000 crore. In the previous financial year, the Railways’ total operational expenditure stood at ₹2,63,000 crore. To meet these costs, the Railways has opted to increase freight movement and rationalise passenger fares. India’s Railways is the second-largest freight-carrying railway network in the world.
The Narendra Modi government, which aggressively punctuated its rhetoric with frenetic nationalism, is simultaneously advancing along a capitalist path in the sphere of governance reforms. The frequent so-called “reforms” carried out in the Railways are just one example of this approach. While raising fares twice in a single financial year may appear strange to the public, it is hardly surprising when viewed against the BJP’s fascist style of governance. India is projected—whatever name one may choose to give it—as a democratic welfare state, whose primary responsibility is to ensure that services are provided to the people free of cost or at subsidised rates. However, departing from this principle, those who have been ruling the country for some time now have focused on reshaping the nation’s development model across all sectors to suit capitalist interests. From the Prime Minister downwards, there is frequent posturing about erasing the vestiges of colonial rule. Yet, in practice, the BJP government readily submits to the new colonial masters—the global capital forces—and restructures governance in line with their structural reforms. This is precisely how the “reforms” introduced by the Modi government in recent years in the Railways—a system meant to provide safe and affordable transport to the public—have ended up benefiting big corporate interests while placing an increasing financial burden on ordinary passengers.
One of the first steps taken by the Modi government was to merge the Railway Budget with the Union Budget. The reason cited was the Railways’ losses and the impact these losses were having on the broader economy. What was identified as the primary cause of these losses, however, were popular measures such as low fares. It is this shortfall that the Union government is now attempting to offset through repeated hikes in passenger fares. With the Railway Budget becoming part of the Union Budget, there is no longer a clear way to ascertain the Railways’ precise profit and loss figures. The fare hike introduced six months ago generated an additional revenue of ₹700 crore. The latest increase, which comes into effect on December 26, is expected to net another ₹600 crore. Equally noteworthy is the question of who ultimately benefits from this additional revenue squeezed out of ordinary passengers. The claim that fare hikes are intended to improve human resources and safety is not borne out by the Railways’ increasingly frayed systems. Even a cursory look at recent accident figures is sufficient to show that the safety situation is far from satisfactory. Conditions have also deteriorated in basic areas such as food, cleanliness, and hygiene. While fares for ordinary passengers continue to rise, the government has failed to operate an adequate number of trains to meet their needs. Instead, more high-speed special trains are being introduced, thereby improving travel facilities primarily for the affluent sections of society. It is also significant that freight charges have not been increased for the past seven years. In effect, under Modi’s “Sabka Saath, Sabka Vikas” governance, every fare hike has turned into a means of improving the position of the wealthy at the expense of ordinary people. The fare hikes in the Railways, along with the inadequacy of infrastructure that fails to justify them, have thus become a telling example of this approach.