Friday, February 24 2006 12:44 Hrs (IST) - World Time -

New Delhi: There is no increase in passenger fares in the Rail Budget for 2006-07.

Presenting the Budget in the Lok Sabha, Railway Minister Lalu Prasad announced reduction in AC first class by 18 per cent and AC-II by 10 per cent.

Passenger tariff structure will be rationalised so that that the fares of AC first class and AC second class will be 11.5 times and 6.5 times the second class fares respectively.

Fully air conditioned 'Garib Rath' (Poor's chariot) will be run on a pilot basis with four pairs of services, fares being about 25 per cent lower than present AC-III tier fares.

Renewal period of monthly season tickets (MSTs) has been increased from three days to ten days and the superfast charges applicable on MSTs and quarterly season tickets (QSTs) reduced to one-fourth of the current level.

Tariff fixation mechanism for military traffic to be rationalised and simplified.

Prasad said there will be no across the board increase in freight rates and rationalisation of goods traffic will continue further.

The number of commodities groups will be reduced from 80 to 28. With lowering of the highest class to 220, freight rates of diesel and petrol will be less by eight per cent.

Over the next three years, the highest class to be lowered below 200 and rates for the highest classification to be made less than double that of the lowest classification (except rates of some light commodities).