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Be ready for rail fares increase, soon it may hike up to 15 to 20 percent

Thursday - December 12, 2019 1:53 pm , Category : BUSINESS
Railways prepare to increase fares
Railways prepare to increase fares

Railways themselves seem responsible for their losses 

DEC 12 (WTN) - Have you ever noticed a line written behind the general ticket of a train? On the back of the general ticket of the train, it is written that the railway charges only 56 percent of the amount you spend on your journey. That is it is clear that according to the railways, it does not charge the same amount of fare from passengers as it actually spent. According to the railways, it is currently charging 44 percent less fare than the actual cost. Now, according to a recent CAG report, the operating ratio of the railway has increased to 98.44. That is railways have to spend more than Rs 98 to earn Rs 100. It is evident from these facts that the expenditure on railways has increased considerably.

It is clear from all these facts that the fare of the railway may increase soon. In fact, the CAG report is also emphasizing the increase in railway fares. According to the information, the railway board has received approval to increase the fare. It is being said that there may be an increase in the fare of all types of trains and all types of classes. The fare increase can range from 5 paise per kilometer to 40 paise per kilometer. If the rail fares increase on this basis, it can increase the fares of every class of railways by 15 to 20 percent.

The increase in fares can be announced by the railways by the end of December, while the increased fares may come into force from February 1, 2020. For your information, let us know that the last announced increase in the train fare was in the year 2014 when the NDA government under BJP leadership came to power. At that time there was an increase of about 15 percent in the fare. Considering the steady increase in the operating ratio of the railways, it is clear that the passenger fare of the train is bound to increase, but if the passenger fare is increased, it will be strongly opposed.

Actually, there has been a discussion of increasing the train fare for quite some time. Railways argue that it has to suffer in the operation of passenger trains. If we talk about different classes of railways, then the railways incur a loss of about 64 percent on the fare of all urban trains. While the non-suburban trains coaches lose about 40 percent. At the same time, there is a loss of about 24 percent in the AC First Class, while the report says about 27 percent loss in the AC Second Class.

Talking about the sleeper class of the railways, it causes a loss of about 34 percent to the railways and about 16 percent loss to the railways every year from the AC chair car. As far as the benefits are concerned, only the AC third-class benefits the railway in carrying passengers. According to the information, railways get 7 percent benefit from the AC third class. That is the statistics are clearly showing that railways are not benefiting from any kind of passenger ridership.

According to the CAG report, the Railways are incurring losses continuously. According to the report, the net revenue surplus of the Railways has come down by around 66 percent. The net revenue surplus of the railways was Rs 4,913 crore in 2016-17, while in 2017-18 it came down to about Rs 1,665.61 crore. The CAG report also said that the railways' own income has also come down by 3 percent, due to which the dependence of the railways on gross budgetary support has increased. At the same time, the railway's own expenses are also not less, according to the information, railways have to spend about 22,000 crore rupees on salary and pension every year.

According to the CAG report, the operating ratio of railways in the financial year 2017-18 has been the worst in the last 10 years. In its report, the CAG has also given some suggestions to bridge the railway deficit. For example, tickets should be made compulsory for children above three years of age. The Parliamentary Affairs Department should bear 75 percent of the concession to MPs and former MPs. The concession is only 50 percent instead of completely free ticket booking on privilege pass.

In fact, the Railways seems also responsible for the loss of passenger fares to the Railways. For your information, let us know that all the concessions given in the reserve ticket fare of Indian Railways are 11.45% of the total passenger ticket income. But the largest share of these concessions, i.e., 52.5 percent, is spent by Railways themselves by passing the privilege pass to their employees.

According to the report, the use of Privilege Pass in the AC class has increased at a rate of 5.7 percent every year. For your information, let us know that Indian Railways offers 53 types of concessions in fares. On average, a concession of Rs 667 per passenger is given in AC class and Rs 157 in the non-AC class. According to the CAG report, normal passengers in premium trains do not get any concession in fares, but Railways have given concessions in fares to their employees. Although the privilege pass is used by people other than railway workers, about 62 percent of the people who enjoy this facility are railway employees.

That is, it is clear that railways have suffered heavy losses in carrying passengers, and the operating ratio of the railway has increased to 98.44 due to other reasons. In such a situation, the simplest way for the railways to reduce this ratio is to increase passenger fares, but the railways should also pay attention to the management of themselves, after all, how can they reduce this deficit at their level. It is clear that if the railways want to reduce losses, then it also needs to pay attention to its own mistakes.