Industry body Assocham asked the government to further raise the rail passenger fares of to finance the huge investments required for modernisation and safety of Indian Railways.

Kingfisher Airlines Chairman Vijay Mallya has reassured employees that the airline will fly by summer with a Rs 650 crore infusion from the UB Group.

While annoucing the increase in fares, Railway Minister Pawan Kumar Bansal also said prices will not be hiked in the annual Rail Budget to be announced in February.

Railways witnessed a widening gap between operational cost and passenger earnings while freight revenue also fell below the target in 2012.

Railways is keen on raising passenger fares between 5-10 paise per km in the coming months to generate about Rs 4,000 crore revenue.

Following the October 29 Cabinet reshuffle, in all likelihood the last before the general elections of 2014, Business Today looks closely at the challenges before five of them, all holding key economic ministries.

Indirect tax collections have risen at a low rate of 15.6 per cent to Rs 2.17 lakh crore in April-September, against the annual target of 27 per cent, due to slowdown in economic activity.

The finance ministry has decided to levy service tax on air conditioned (AC) and freight services fares, with their rates set to increase by 3.7 per cent from October 1.

Days before stepping down as finance minister to become the UPA's Presidential candidate, Pranab Mukherjee paved the way for introduction of a new service tax regime in India, which is expected to swell the government coffers by Rs 27,000 crore.

Railway passenger fares in all AC classes and first class may rise by 3.6 per cent from July 1 as there are little indications that Finance Ministry would extend service tax exemption to Railways beyond this month.

The ruling Congress party - which leads UPA-2, a motley alliance of eleven political parties - has failed to lead from the front in taking its alliance partners along on key economic decisions.

Banerjee, who earlier headed the ministry until she took charge of Bengal last year, was livid with Trivedi for presenting the budget without consulting her.

1,500 new coaches have been declared for the Mumbai locals in the railways budget. Story

In an exclusive interview to Headlines Today, Dinesh Trivedi says railways was in dire need of money and he cannot afford to play with people's lives. Story

Manmohan Singh hails the Rail Budget which has proposed hike in passenger fares in various ranges in different categories. Story

Mamata Banerjee says she will not allow the Railways to hike fares. Story

Derek O'Brien said hike in fare for upper classes may be okay but there was no justification for effecting the increase across the board.

BJP leader Gopinath Munde says the government has cheated the nation.

Commuters say the hike in train fares are justified only if the facilities are improved.

Former Railways minister says the price hike was not required and should be rolled back.