Indian Railways to Levy User Fee at Major Stations

The railway board has announced that it will soon start charging a token user fee. The user fee will be charged from the passengers who will take trains from the busy stations. The decision by the Railways will slightly increase the total fare of the tickets.

Key facts

  • The user fee collected by the Railway will be used for the redevelopment and modernization of railway infrastructure.
  • The fee will be inclusive in the total ticket fare.
  • This is being done on the line of user fee in the air tickets.
  • Amount charged will be a very small amount and it will be charged as a user fee.
  • The board have stated that it as an important step to bring world-class facilities in the Railways.

Details regarding the fee

Railway Board CEO and Chairman VK Yadav has announced that, an official notification will be issued for the user charges. The notification would contain, both, a list of stations that are being redeveloped and not being redeveloped. The collected user fee will be utilized for providing better facilities and to redevelop the stations. After the redevelopment of the station is complete, the user fee will be transferred to the concessionaries.

Stations selected for charging the user fee

Around 7000 stations are currently operating in India. Out of this, some 700-1000 (10-15%) stations would be selected to levy the use fee.  The selected stations are supposed to pull more crowd in upcoming years and that is why they need to be redeveloped.

This decision has been taken under the redevelopment and modernization plan of the railway. This was announced on September 17, 2020 by The Union Railway Minister, Piyush Goyal in the Lok Sabha. For that matter, a Group of Secretaries (GoS) have also been constituted.  The plan would provide amenities, better service and better safety to the passengers.