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Blog Entry# 5941845
Posted: Jan 14 (11:11)

5 Responses
Last Response: Jan 25 (19:02)
Rail News
16540 views
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Politics
Jan 14 (11:11)   Indian Railways offering 55% concession on train fares to every passenger: Ashwini Vaishnaw

PrakharYadav^~   1416 news posts
Entry# 5941845   News Entry# 537477         Tags   Past Edits
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...

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Jan 14 (11:39)
Shankar_Rail
Shankar_Rail   52 blog posts
Re# 5941845-1               Past Edits
1 compliments
Useful
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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Overall, IR has adopted a good strategy for improving passenger revenues by curtailing unviable routes, conversion of passenger to Mail/express, mix of AC berths increased to 40 percent from around 10 percent in reserved category, introduction of VB trains, etc. IR will reach the zero loss in passenger segment in the next 3 years, provided they also increase Second class and Sleeper class fare by 15 to 20 percent after the elections. This will make this segment also viable and add to lower middle class using IR for long distance travel and also make IR servicing all the segments.

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Jan 14 (12:08)
PrakharYadav^~
PrakharYadav^~   12721 blog posts
Re# 5941845-2               Past Edits
But why IR is reluctant to increase the fares, dat too since 10 years.
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Jan 25 (18:55)
Shankar_Rail
Shankar_Rail   52 blog posts
Re# 5941845-3              
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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1. Changes 500+ passenger trains to Express trains, which are plying more than 200km
2. Sleeper class reserve berths are slowly replaced and AC berths/seats increased from 10 percent of total daily berths to 40 percent over the last 10 years.
3. Upgraded around 600+ trains from Express category to SF
4. Increased revenue from 135 cr per day in 2018 to 200 cr per day in 2023.
5. VB trains added 60000 ac seats and will add another 100000 in 2024.
6. Ultimate goal is to make the IR to get around 350 to 400 crore revenue by carrying 1 crore passengers per day in long distance category and moving unreserved seats to reserved seats.
7. Make at least 50 percent in suburban travel into AC Vande Metro.
8. In 3 to 5 years, there will be no waitlists and the number of trains will be around 15000 per day, but most of them will be in viable category and none will be subsidised including suburban travel.
9. In transition, we have to put up with stress for another year or so for continuous new trains of around 500 per year joining the daily average trains, mostly in VB category.

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Jan 25 (18:58)
RohitBiharSharif~
RohitBiharSharif~   7231 blog posts
Re# 5941845-4              
Charging Exp fare in MEMU/DEMU/PSG trains.
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Jan 25 (19:02)
Shankar_Rail
Shankar_Rail   52 blog posts
Re# 5941845-5               Past Edits
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.
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