<div>A decision on hiking passenger fares and on allowing foreign direct investment in railways is likely to be taken before the Rail Budget, the government said on Thursday (19 June).<br /><br />A discussion on these matters is already on and a decision regarding them will be taken shortly, Railway Minister Sadananda Gowda said.<br /><br />"We are discussing the matter and, within three-four days, will come to a conclusion (regarding the possible fare hike)," Gowda said on the sidelines of a conference of senior railway officials here.<br /><br />He is likely to meet Prime Minister Narendra Modi in a day or two to discuss the fare hike issue.<br /><br />Faced with an acute cash crunch, the railway board has proposed a 14.2 per cent hike in passenger fares along with a 6.5 per cent increase in freight rates.<br /><br />The railway budget is likely to be presented in the second week of July.<br /><br />Meanwhile, asked whether FDI will be allowed in railways, Gowda said, "Practically, we are short of resources, which is well-known to the people of the world. So, some resource mobilisation should be taken as being one of the priorities of railways. I want to have discussions with the commerce ministry.<br /><br />"Yesterday, too, I had a small discussion with Commerce Minister Nirmala Sitharaman in this regard."<br /><br />Talking about his meeting with Sitharaman, Gowda said, "She asked me to come up with suggestions and we will discuss the matter and go ahead. In a day or two, I will have a meeting with the commerce ministry and will come up with a clear (stand) as far as FDI is concerned."<br /><br />Railways could benefit from FDI in high-speed trains, station development and last-mile connectivity.<br /><br />Asked what proportion of FDI will be allowed in the rail sector, Gowda said, "It will be clear only after discussions.<br /><br />Certain policy matters and other issues are there which need discussion. FDI cannot be brought in a secret manner or put in cold storage. It has to be done in open." <br /><br />(PTI)</div>
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