Indian Railways fares to rise? Ticket prices may rise if order is implemented

The Railway Convention Committee on Internal Resource Generation by Indian Railways, which submitted its report in the Lok Sabha today, said the Railway Board had informed the Parliamentary panel that the national transporter was losing money as passenger fares were not increased in almost a decade-and-a-half.

Indian Railways has been advised by a parliamentary panel to periodically revise and rationalise train fares to increase earnings from passenger segment in the wake of losses. Image source: Reuters

Indian Railways has been advised by a parliamentary panel to periodically revise and rationalise train fares to increase earnings from passenger segment in the wake of losses amounting to Rs 35,000 crore in these services.

The Railway Convention Committee on Internal Resource Generation by Indian Railways, which submitted its report in the Lok Sabha today, said the Railway Board had informed the Parliamentary panel that the national transporter was losing money as passenger fares were not increased in almost a decade-and-a-half.

The committee report said, "Taking into account the whopping loss of revenue in passenger services coupled with an operating ratio of 98.5 per cent, the committee is of the considered opinion that the railways have ultimately to undertake gradual or periodical fare rationalisation, besides embarking upon other requisite measures to increase passenger earnings."

The national transporter has also been asked to make a segregated assessment of the actual revenue benefits accrued through the introduction of the flexi-fare system, which is "sometimes reportedly at par with air fares in economy class".

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Notably, Indian Railways has been spending in a major way on its infrastructure to improve safety as well as ensure quality services for passengers over the last few years. The transporter has been losing out on traffic to airlines, something that the CAG has red flagged recently.

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