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March 20, 2012

India Railway Minister Quits Over Fare Hike

New Delhi. India's railway minister Dinesh Trivedi resigned Sunday evening, after a fare hike he proposed was rejected by his own party, sparking a political crisis within the Congress-led coalition government.

The fare hike by Trivedi, a member of the Trinamool Congress, won praise from its ally, Congress, for raising money to modernize and upkeep the Indian Railways. But it angered his own party leader Mamata Banerjee, because it went against her populist image.

Banerjee called for a rollback of the hike and the resignation of Trivedi, who was her nominee as railway minister, sparking a stand-off between the Congress and its key ally.

That crisis appeared defused yesterday with Banerjee announcing that Trivedi had agreed to resign. She is also pushing for a rollback of rail fares.

"He (Trivedi) called me and he told me that he will abide by the party decision and send his resignation," Banerjee, who is Trinamool Congress supremo and West Bengal Chief Minister, told news agency Press Trust of India.

Trivedi too announced his decision to quit. "I'm a soldier of my party. [I] have to obey party," he said. He had been railway minister for a year.

Banerjee flew from Kolkata to New Delhi and is expected to meet with Finance Minister Pranab Mukherjee in a effort to reduce tensions.

The fare increases - which still need to be passed by Parliament - were the first in eight years.

They ranged from 2 paisa per km to 30 paisa per km.

Trivedi said the railways needed the extra money to lay new tracks and modernize services.


STOP PRESS
Mukul Roy has been sworn in as India's new railway minister after his predecessor resigned over the weekend in a spat over his ticket price rise. 


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