This is how Indian Railways has sought to increase revenue; 5 points

Aug 01, 2018, 12:39 PM IST

Since revenue generation is a critical function of Indian Railways, it has taken various initiatives to increase earnings from passenger and non-fare services. In a written reply to the Rajya Sabha, Minister of State of Railways Rajen Gohain has stated that evaluation of various alternatives relating to rationalisation of passenger & freight structure is an on-going process.


"Recently, a number of measures have been taken to rationalize the tariff so as to increase revenue. Some of them are: Liberalised Automatic Freight Rebate scheme for traffic loaded in empty flow direction, rebate in freight under Long Term Tariff Contracts (LTTC) with key freight customers, discount on loading of bagged consignment in open & flat wagon, withdrawal of port congestion charge, rationalization of coal & coke tariff etc," the statement said. According to the reply, Indian Railways has taken various measures to increase earnings from passenger and non-fare services. These steps include: Image source: Zee Business


1.A number of measures have been taken in passenger segment. Some of them are Introduction of Flexi Fare system in higher category of trains i.e. Rajdhani, Shatabdi and Duronto trains. Image source: Reuters


2.In view of special attempts/ arrangements made for running of special train services during peak period, higher fares have been fixed for running of special trains. Image source: PTI


3.Suvidha trains are introduced on variable fare structure during the peak seasons depending on the demand pattern. Humsafar Express, Tejas Express, Antyodaya Express and Mahamana Express have been introduced on higher fare on cost recovery basis. Image source: Reuters


4.The endeavor is to realize higher fare for better facility trains and continue to provide service at affordable and economic rates to common man. Image source: Reuters


5.Number of Steps have been taken to improve parcel earnings including having a policy of ‘Comprehensive Parcel Leasing Policy (CPLP), ‘Parcel Cargo Express Trains (PCET)’ and Opening of parcel business to container traffic etc. Image source: Reuters


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