Coming soon! Airport-like user charge for train passengers? What we know so far

Indian Railways is expected to levy an airport-like fee on passengers who use its redeveloped stations. According to a report by news agency PTI, Railway Board Chairman VK Yadav said in a press briefing, "The fee will vary across the newly developed stations depending on their footfall." He added that the ministry will soon notify the amount to be charged.

The Railways has floated a request for proposal, seeking bids to redevelop Amritsar, Nagpur, Gwalior and Sabarmati railway stations at an estimated cost of Rs 1,296 crore. The government is set to invite bids to redevelop 50 stations through the Indian Railway Station Redevelopment Corporation Ltd (IRSDC), entailing an investment of around Rs 50,000 crore in 2020-21.

User Development Fee (UDF) is a part of the taxes that are paid by an air passenger. UDF is charged at various airports and its rate varies based on various factors.

"The user development fee, along the lines of a levy charged by airport operators, will be used to help fund the upgradation of stations. The charges will be nominal," Yadav said.

He also said that the levy of the fee will only result in marginal increase in fares which would be compensated by user experience of world class stations.

The Narendra Modi-led NDA government had announced plans to redevelop 400 railway stations in its first term. As per the plan, the cost of station redevelopment project was to be met by leveraging commercial development of land and air space in and around the stations.