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‘Variable fare structure in railways to boost earnings’

Parliamentary panel recommended railways to have a rationalized fare structure to compete with airlines

Policy Pulse
Publish Date: Aug 12 2016 10:13AM | Updated Date: Aug 12 2016 10:13AM

‘Variable fare structure in railways to boost earnings’

The Railway Convention Committee, in their report, has advocated the rationalized and variable fare structure for the railways. According to the report such system will help railways to compete with the airlines pricing method and it will boost the earnings. 


The panel has also cautioned that the considered change in the fare should not be against the pocket of the passengers. The panel specifically mentioned that the interest of the travelers must be protected by the railways. 


The committee headed by BJP MP Bhartuhari Mahtab also expressed concern over the gradual decrease in the passenger.  The number of passengers in railways in 2012-13 was 8,421 millions, which has come down to 8,151.90 millions in 2015-16. 


The Railway Board have considered various factors the reduction in the number of passengers in trains including capacity constraints on major trunk routes, improved in road infrastructure offering faster connectivity, gradual shift of passenger traffic to growth of metro rail projects, cancellations of trains due to agitations and natural calamities. 


The committee, however, said the improvement in road infrastructure offering better and faster connectivity and the comfort and convenience provided to passengers by Metro act as a stimulus for the railways to leverage its performance. 


The committee also said it was worrisome to note that the increased goods rates in the railways are may be offsetting the losses in passenger business. The freight rates in railway should be easy than other modes of transport.