January 2020 was the last time the Railways “marginally increased” the passage fare ranging from 1 to 4 paisa per kilometer for different classes. However, between April 2020 and October 2022, the Railways has earned at least Rs 1,619 crore additional revenue from flexi fare scheme, being implemented on premium trains, according to the Ministry data accessed by News18.
In 2019-20, Railways earned Rs 823 crore under the flexi fare scheme, which has been implemented since 2016. From 2019-20 to October 2022, additional revenue generated by the Railways from the flexi fare stood at Rs 2,442 crore, the Ministry data analysed by News18 shows.
The coronavirus pandemic had its impact on the railways earning from flexi fare, too, as in 2020-21, Railways only got Rs 365 crore under the scheme – more than half of the 2019-20 numbers. As the world slowly returned to normal in the post-Covid era, the additional income of Railways also increased.
In 2021-22, Rs 574 crore was earned by the Railways under the scheme, while this financial year, up to October, it has further increased to Rs 680 crore.
WHAT IS FLEXI FARE?
Since 2016, the Railways has introduced the flexi fare scheme in premium trains, including Rajdhani, Shatabdi and Duronto.
Under this scheme, the fare increases by 10% with every 10% of berths sold subject to a maximum limit. No change has been made in the fare for First AC and Executive class.
According to an official from the Railways, the flexi fare scheme was introduced in order to recover the losses and provide passengers better travelling experience.
On being asked that the flexi fare, at times, makes the tickets too expensive, the official explained that Railways gives common man an option of alternative trains too.
“Alternative trains are always available for passengers on normal fare on similar routes. They can opt for those trains, if they wish. Rajdhani, Shatabdi and Duronto trains are highly prestigious trains with better facilities, service, speed and punctuality,” the official said, demanding anonymity.
ONLY ‘MARGINAL INCREASE’ IN FARE SINCE 2015
Soon after coming to power, the Narendra Modi government had increased the train fares of all classes by 14.2% in June 2014. Since then, there has been no hike in the train fare, except a “marginal increase” in 2020.
The railways in 2020 said it had to increase the fare “in order to expand passenger amenities and facilities at railway stations and trains”.
“It has become imperative to increase the fare marginally without overburdening any class of passengers,” it said back then.
The Railways had increased passenger fares by 1 to 4 paisa across various classes, only over the non-suburban sections of Indian Railways, from January 1, 2020. There was no fare hike for passengers over suburban sections and season ticket holders.
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