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Blog Entry# 5941845
Posted: Jan 14 (11:11)
5 Responses
Last Response: Jan 25 (19:02)
5 Responses
Last Response: Jan 25 (19:02)
Politics
PrakharYadav^~ 1456 news posts
Every train passenger will receive a 55% concession on their fare, according to Railway Minister Ashwini Vaishnaw. When asked about the restoration of pre-Covid fare concessions...
This 55 percent subsidy calculation is based on 2019-20 data, which is peak COVID-19 year when the passenger business went down. In regular year like 2018-19, passenger revenue was 51000 crores and in FY 2024-25, the passenger segment revenue would be close to Rs. 90000 crores. Now, if we estimate for current financial year the revenues are around 75000 to 78000 crores. Hence, we safely conclude that the passenger revenue subsidy would have definitely come down to 25 percent. The daily average trains operated by IR before COVID 19 were around 13500, and currently IR operates around 10500 daily average trains. IR has scrapped around 1300 passenger class trains, 1200 mail/express trains on unviable routes and also upgraded 500+ passenger trains to Mail/express trains. This has improved realisations and reduced the operating expenditure.
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But why IR is reluctant to increase the fares, dat too since 10 years.
IR does not want to increase the second Seater, Sleeper and Suburban tickets mainly due to political reasons. Current political dispensation also has same dilemma of making passenger segment as viable business without affecting the voting community, which is largely lower middle class and middle class which uses the IR on daily basis in suburban and long-distance travel for two to three times in a year to travel back to their native place.
IR has started improving the revenue realisation without showing a perceptible change through following means.
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IR has started improving the revenue realisation without showing a perceptible change through following means.
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Most likely in the next budget (full budget), all the train passenger fares will be rationalised and also category of trains will also come down and there will only be five category of trains. Suburban, DEMU/MEMU, Express, Luxury and VB trains. All categories will be merged into these train categories.