Welcoming the hike in railway fares initiated by the Narendra Modi government, RLD leader Amar Singh on Saturday said the raise was needed for sustainable growth and said the central government's stance that the rich should voluntarily give up cooking gas subsidy is a mark of "good governance".

"The hike has been criticised by many but I feel it is necessary…we need to have to have sustainable growth to have world-class facility," he told reporters here on the sidelines of an event organised by MCC Chamber of Commerce and Industry.

He also batted for privatisation of railways.

The petroleum ministry on Friday asked the rich and the upper middle class to give up cooking gas subsidy in an effort to control the inflating oil subsidy.

"I think it is an example of good governance. The 'haves' have no right to avail of subsidy which is meant for the poor," said Amar Singh.