Ministry of Railways
Indian Railways rationalizes Passenger Fares

Measure to boost modernization and state of the art facilities to passengers of Indian Railways

01 JAN 2020

Indian Railways has continuously endeavored to augment passenger experience through modernization and provision of improved facilities over trains and stations. The last fare revision over Indian Railways was done in 2014-15. In order to expand passenger amenities and facilities at railway stations and trains, it has become imperative to increase the fare marginally without over burdening any class of passengers. Further, the burden of 7th Pay Commission on Indian Railway has necessitated rationalization of fares. Fare revision will help in channelising the fast modernization of Indian Railway.

Accordingly, Railways has decided to marginally effect an increase in fare. Keeping the affordability concerns of daily commuters, there shall be no fare hike for passengers over suburban sections and season ticket holders. This class constitutes 66% of total passenger segment over Indian Railways. Even for the passengers traveling in Ordinary Non AC Classes, there shall be a marginal increase of 1 paise/ PKM (Passenger Kilometer). The increase in fare will be on tickets bought on or after 1st January 2020 and no excess fare (difference of fare) will be charged from passengers who have booked tickets before 1st January 2020. The fare revision is as below:

• Ordinary Non-AC classes(Non-suburban): Fare increase by 01 paise/ PKM
• Mail/ Exp Non-AC classes : Fare increase by 02 paise/ PKM
• AC classes– Fare increase by 04 paise/ PKM
• Suburban fare and Season tickets: No increase

Existing fares of train services like Rajdhani, Shatabdi, Duronto, Vande Bharat, Tejas, Humsafar, Mahamana, Gatiman, Antyodaya, Garib Rath, Jan Shatabdi, Rajya Rani, Yuva Expresses, Suvidha and special trains on special charges, AC MEMU (non-suburban), AC DEMU (non-suburban) etc shall similarly be revised to the extent of the above proposed increase in class-wise fares.

There shall be no change in charges for reservation fee, superfast surcharge etc. Such charges, wherever applicable, shall continue to be levied additionally. GST as applicable shall be levied, as per instructions issued from time to time.

Indian Railways is constantly striving for up-gradation of amenities to passengers, modernising railway stations and providing state-of-the-art facilities on board and off -board. Rationalisation of passenger fares will boost the endeavours of Indian Railways in the same direction.

PIB

The post Indian Railways announced on Tuesday an increase in ticket price across its network from 1 January 2020 appeared first on CENTRAL GOVERNMENT EMPLOYEES NEWS.

Facing resource crunch, Railways is said to be mulling the possibility of effecting a 5 to 10 per cent increase in the passenger fares in the coming budget.

The proposal is being considered against the backdrop of a decline in both passenger and freight earnings and the additional burden of Rs 32,000 cr towards implementing the Seventh Pay Commission recommendations, Railway Ministry sources said.

On top of this, the gross budgetary support for the 2015-16 has also been slashed by Rs 8,000 cr by the Finance Ministry due to low spending by the Railways.

The sources said while there are several possibilities including a fare hike are being looked into nothing has been finalised yet.

The sources said a decision has to be taken whether to hike the fares and, if so, when. But it is not necessary it has to be done only in the budget, they said.

There is a feeling in rail bhawan that a fare hike in the budget to be presented on Feb 25 can be more beneficial as the railways can utilise the peak season beginning March.

Currently AC fares are already on higher side. If AC fares are raise, then they could even surpass the fares of low-cost air carriers in some sectors.

Similarly, freight rates are also at a high level and loading of steel, cement, coal, iron ore and fertiliser is on a down slide that rules out any further increase in this area.

Railways had effected a 14 per cent across-the-board hike in passenger fares in 2014 during the NDA regime and a 10 per cent increase last year.

Railways’ total earnings from freight and passenger fares were Rs 1,36,079.26 cr until January this year as against the target of Rs 141,416.05 cr, a shortfall of 3.77 per cent.

Acknowledging the decline in earnings sources said various options were being explored to perk up revenue collections.

While one option is to raise the fares in selected routes, the other is to go for increasing the cost of services provided.

Meanwhile railways have undertaken steps for cutting the costs and for commercial exploitation of surplus railway land besides looking at higher revenues from advertisement in a bid to tide over the crisis. The focus may be on improving non-tariff collection, the sources said.

Railways have conducted a study by Axis Capital which has recommended a 10 per cent hike in passenger fares and a 5 per cent raise in freight rates to improve the state-run transporter’s finances.

PTI

The post 7th Pay Commission: Rail budget may hike passenger fares appeared first on CENTRAL GOVERNMENT EMPLOYEES NEWS.