India to raise passenger rail fares from Jan. 21

Last Updated: Wed, Jan 09, 2013 10:20 hrs

New Delhi, Jan 9 (Reuters) - The Indian government announced on Wednesday an increase in railway fares for passengers, the first upward revision in nine years, which will help generate 66 billion rupees ($1.20 billion) for the cash-strapped railways.

The fare hike will be effective from Jan. 21.

Last year in March, the government was forced to roll back the first fare hike in eight years, which was aimed at shoring up the finances of a rail network whose dysfunction has become a major drag on the economy. ($1 = 55.0700 Indian rupees) (Reporting by Satarupa Bhattacharjya; Editing by Prateek Chatterjee)

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