New Delhi, December 7: Indian Railways will not make any changes in its freight or fare structure on account of fuel adjustment component (FAC) till the next Railway Budget, Arunendra Kumar, Chairman, Railway Board, said a press conference here on Friday. The FAC in the next Budget will account for changes in fuel prices during April-September 2014 against the same period last fiscal, said Kumar. He declined to share the net effect of the price movement indicating that there could have been increase in electricity bill, and drop in diesel bill.
Meanwhile, the Rail Ministry has decided to constitute a High Level Committee to identify factors, issues and avenues for improving the financial health of Indian Railways. The committee will be headed by D.K. Mittal, former Secretary, Financial Services. The Members will include Secretary, Economic Affairs or his Representative, Advisor (Accounts), Railway Board, CMDs of RITES, IRCON, Container Corporation of India and Managing Director of RLDA, and representatives from Boston Consulting Group and McKinsey India. Executive Director Finance (Resource Mobilisation) will be the associate on behalf of the Ministry of Railways.
The committee will study the existing revenue structure and avenues for realising revenue in Indian Railways, identify areas in the existing revenue structure for improving revenue; areas for containing leakage of revenue. It has to submit a report by December 21.