Airport-like consumer cost to be levied on passengers for newly redeveloped railway stations; fares more likely to go up, says official

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    New Delhi: Railways will levy an airport-like payment on passengers who use its redeveloped stations which is able to lead to a hike in fares, a senior official stated on Wednesday.

    Person Improvement Payment (UDF) is part of the taxes which are paid by an air passenger. The UDF is charged at varied airports and its charge varies primarily based on varied elements.

     Airport-like user charge to be levied on passengers for newly redeveloped railway stations; fares likely to go up, says official

    Representational picture. Information18

    The consumer cost will fluctuate throughout the newly developed stations relying on their footfall, Railway Board Chairman VK Yadav stated in a press briefing.

    He stated the ministry will quickly notify the quantity to be charged.

    The railway has floated a request for proposal, searching for bids to redevelop Amritsar, Nagpur, Gwalior and Sabarmati railway stations at an estimated value of Rs 1,296 crore.

    The federal government is ready to ask bids to redevelop 50 stations by way of the Indian Railway Station Redevelopment Company Ltd (IRSDC), entailing an funding of round Rs 50,000 crore in 2020-21.

    “The consumer growth payment, alongside the traces of a levy charged by airport operators, can be used to assist fund the upgradation of stations. The costs can be nominal,” Yadav stated.

    He additionally stated that the levy of the payment will solely lead to marginal improve in fares which might be compensated by consumer expertise of world-class stations.

    The Narendra Modi-led Nationwide Democratic Alliance (NDA) authorities had introduced plans to redevelop 400 railway stations in its first time period. As per the plan, the price of station redevelopment mission was to be met by leveraging industrial growth of land and air house in and across the stations. The railway stations had been taken up for redevelopment primarily based on monetary viability.

    Authorities think-tank NITI Aayog in October had pulled up the ministry for delayed implementation of the station redevelopment plan. It had really helpful an empowered group of prime bureaucrats to develop 50 stations on precedence foundation.

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