Indian Railways eyes Rs 500 crore out of flexi fare method, justifies decision

Zee Media Bureau

New Delhi: Justifying the newly introduced flexi fare system, the Indian Railways claims that about Rs 500 crore revenue will be generated through this pricing model. As per a report published in the India Today, the Railways - that struggles with losses in tune of Rs 33,000 crore for passengers segment annually - thinks that the model will substantially help in reviving its fortunes.

However, the revised pricing model is being applied on an experimental basis and will be reviewed later.

The Indian Railways introduced the flexi fare system for Rajdhani/Duronto and Shatabadi trains from September 9.

The details are given below:

1. The base fare for Rajdhani, Duronto and Shatabadi class of trains will be on flexi fare system.

2. (a) The base fares will increase by 10 percent with every 10 percent of berths sold subject to a prescribed ceiling limit as indicated in the table below. There will be no change in the existing fare for 1AC and EC class of travel. In the tables given below ‘X’ stands for the present base fares.

Other supplementary charges like reservation charges, superfast charge, catering charges, service tax etc., as applicable shall be levied separately.

(b) Vacant berths left at the time of charting would be offered for current booking. Tickets under current booking shall be sold at the last price sold for that class and other supplementary charges like reservation fee, superfast charges, catering charges, service tax etc., as applicable shall be levied in full.

(c) The information should also be displayed to the passenger during the booking in case the fare of lower class becomes higher than the higher class to exercise option to travel by the higher class.

(d) The last price for every class of tickets for the particular train should be printed in the reservation chart for the purpose of charging of difference of fare in the train or charging the passengers of the train without ticket etc.,

3 The operation of various quotas available in these category of Trains shall be as under:

(a) Tatkal Quota: The present limit of berths set aside for Tatkal quota in these trains shall be operated as per the existing guidelines.  However, no additional charges as “Tatkal charges” will be levied.  The berths assigned under the Tatkal quota shall be booked at the rate of 1.5 times of the base fare for all classes (2S, SL, 2A, 3A and CC) except 1AC and EC. Other supplementary charges like reservation fee, superfast charges, catering charges, service tax etc., as applicable shall be levied in full.

(b) There shall be no Premium Tatkal Quota in these train services.

 4. Concession: Normal concession as applicable for respective concessional ticket will be admissible on the base fare of the ticket at each stage as per the table above.

5. Refund Rules:  There will be no change in the existing refund rules.

6. Other Charges: There shall be no change in charges for reservation fee, superfast surcharge etc. Such charges, wherever applicable, shall continue to be levied additionally as per existing instructions.

7. Service tax will continue to be levied as applicable as per instructions issued in this regard.

 8. All other rules and conditions pertaining to the above category of trains shall be continued without any change.

 9.  The changes in fares as above shall come into force w.e.f  09.09.2016.

10. The revised fares will not apply to tickets already issued in advance for journeys to commence on or after 09.09.2016.

11.  In the case of tickets already issued at pre-revised rates, the difference of fare shall not be collected from the passengers.

12. These changes should be carried out in manual ticketing system and in PRS, UTS  etc.