Railway Thinks To Get 71% More From Train Tickets
The Indian Railways hopes to cut the significant losses it has suffered by urging passengers to give up their ‘ticket subsidy’ in the first AC (air conditioned), second AC and sleeper class segments.
The campaign, which as reported earlier, will be called ‘Give it Up’, will attempt to inspire comparatively well-off passengers to pay between 26% and 71% more, depending on the ticket category.
At present, the Railways are running at losses of over Rs 42,000 crore in the passenger segment. The staggering number including losses of Rs 11,000 crore in the sleeper class segment, Rs 200 crore in first AC and Rs 700 crore in second AC.
The Indian Railways, on average, pays 43 paise per rupee for each ticket as ‘subsidy’. This is not a traditional subsidy, insofar as it comes from the central exchequer, but is instead cross-subsidised from the money the national transporter makes from its freight operations.
According to the railways’ internal data, the first AC segment has the maximum ‘subsidy’ of 71 paisa per rupee, while it is 37 paise in the sleeper and 26 paise in the second AC segments.
Though the Railways incurs a loss of Rs 14,000 crore in passenger trains which are not in the mail and express category — losses of Rs 12,000 crore are also incurred in ordinary second class and Rs 6,000 crore in suburban services — these classes will be exempted from the campaign.
However, a senior official said that the ‘Give it Up’ campaign is likely to garner about Rs 10,000 crore only. “Unless the unreserved second class and suburban service fares are rationalised, the revenue earnings will not be substantial,” the senior official, who declined to be identified, said.
The Railways had earlier launched a similar campaign for senior citizens to forego their concessions. Women passengers above the age of 58 years get 50% concession in all classes while male passengers above the age of 60 get 40% concession in all classes including in the Rajdhani, Shatabdi and Jan Shatabdi trains.
IRCTC TICKET BOOKING PRICE INCREASED:
Three years ago, IRCTC used to levy a service charge of Rs 20 on every non-AC e-ticket and Rs 40 for every AC ticket.
The Finance Ministry reportedly contended that the scheme of waiving of service charges was a temporary decision. And the railway ministry can now started charging e-tickets.