The central Ministry of Fiance has been allotting special funds for the Ministry of Railways to carry out the various improvement projects.
For the year 2015, the Ministry of Finance has allotted Rs. 40000 Crores for the Ministry of Railways.
However, during a recent revision of the budget, the ministry of Finance decided to reduce the amount from Rs. 40000 Crores to Rs. 28000 Crores.
Thus, the Ministry of railways faces a shortfall of Rs. 12000 Crore fund.
Unless the arrangement for this shortfall is made, Railways will not be able to complete its ongoing projects. Also, it will not be in a position to announce new projects.
Subsequently, the Ministry of railways has put up a request to the Ministry of Finance about its current position and shortfall and asked for an addition of Rs. 12000 Crores.
However, the Ministry of Finance refused to entertain this request. It asked the Ministry of railways to raise this shortfall as a fund on its own.
Following this, the Ministry of railways has started devising the various methods to meet this shortfall of Rs. 12000 Crores
Recently, the the fees for tatkal Reservation was increased.
In the next phase, Railways Misnistry has decided to increase the fares for train travel as well as the goods/freight movement.
The Ministry of railways is expecting to overcome the shortfall with 25% coming from train tickets for passengers, and 65% through goods services.
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