- Stock Market Live News Today: Nifty, Sensex gain over 2% each; bank, metal stocks shine
- RBI Monetary Policy Review: Top 20 statements from Governor Shaktikanta Das' MPC address
- 5G rollout: Xiaomi India shares big update on data packs, plans, bundled offers | Interview
- RBI Monetary Policy: Offline Payment Aggregators come under regulatory purview; on parity now with online peers
- Twitter shares update to make video experience better - Step-by-step guide
Indian Railways passengers alert! Train ticket prices may go up on select routes
The Indian Railways may hike fare on selected routes in order to increase its passenger revenue.
Finance Minister Piyush Goyal has allocated Rs 64,587 crore to the Indian Railways and the capital expenditure has been pegged at the highest ever Rs 1.58 lakh crore. The allocation to the railways has gone up by 21% in the budget. Despite more money coming into its kitty, the Indian Railways is eyeing to increase its fare revenue. According to a report by Hindu Business Line, the public transporter is re-working its fare module. The report quoted railway official saying that the fare may be hiked on routes where demand is high.
At present, the Indian Railways takes into consideration things like distance, train's speed, seat categories like AC/non-AC while deciding the fare. However, the railways is planning to add some new parameters including the demand on the route to decide the fare.
Since the rail fare hike has always been a politically sensitive issue, the hike may not come into effect before the polls.
Recently, the public transporter had revamped its much-criticised flexi-fare scheme which was launched with effect from 9th September 2016. The railways had discontinued flexi-fare in trains with average monthly occupancy less than 50%. Also, it had decided to discontinue flexi-fare (during lean 3 months) in trains with average monthly occupancy between 50-75% throughout the previous year.
Watch This Zee Business Video
Also, to increase the occupancy of less patronised classes (2A, 3A, CC etc.), it had decided to offer a graded discount of 20% on the last fare on all trains with Flexi Fare and Humsafar Trains where occupancy of a particular class is less than 60% (4 days prior to scheduled departure of the train).
The flexi-fare scheme was also criticised by the national auditor CAG which then claimed that rail fare on some routes was more than airfare.
Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.