The coming days could be a little tough for railway passengers as fares may increase by 10%. Five proposals have been presented to the railways for the same. As per the proposals, fares will increase every month by 1% and gradually will go up to 10%. The final decision on this matter will be taken by Railway Minister Suresh Prabhu.
Also, the proposal suggests the elimination of the flexi fare system in trains like Duronto, Shatabdi and Rajdhani Express. As per one of the top officials of the Railway Board, these proposals aim to generate more revenue for the railways through passenger fares. However, the decision has not been taken yet.
Proposal 1: 1% fare to increase every month
As per railway sources, administration is thinking about increasing train fares by 1% every month. By doing this, there would be less opposition by the public and it will not be too heavy on their pockets.
Proposal 2: Flexi fare will be discontinued
There is also a proposal to discontinue or at least, reduce flexi fare, which means instead of increasing 10% fare on 10% seats, there will only be a 5% increase. This is happening despite the 600 cr annual profit it brings, because this has always been a point of contention with customers.
Proposal 3: Lump Sum 10% increase in fares
Also, if flexi fare is removed, then 10% of the fares in all classes of trains will be increased. Railways now earn about INR 45,000 cr from passenger fares. If 10% of the fare increases, then there will be additional earnings of INR 450 cr.
Proposal 4: 2nd class to get more importance
While addressing the welfare of the poor, PM Modi has stated that the second-class passengers shouldn’t be burdened. The proposal states that though 2nd class fare should be increased, it can be done in small amounts.
Proposal 5: 3rd class remains unaffected
Looking at the railway statistics, there is a huge loss in every class other than the third class. For instance, in the AC chair car, each passenger’s travel costs up to INR 1.13 paise/km but the revenue earned is only INR 1. In third AC, the same cost is 93 paisa and the profit is INR 1.4. Therefore third AC still remains unaffected.
