Title - Flexi fare system has failed to support Indian Railways in revenue collection

Despite several steps for augmentation of revenue through fare restructuring, alarm bells are ringing for Indian railways as in comparison to the earning figures in September last year, its total earnings from passengers and goods have declined by over 11 per cent in September 2016.

Several innovative fare structures was introduced by Railways that includes flexi fare with higher tariff trains like Tejas, Humssafar etc. yet travellers are going away from Railways.

Freight rates too were rationalized by railways to attract more loadings, but despite that there was a  sharp decline of 9.7 per cent in freight revenue.

Ass per officials this shortfall was observed by railways for last two consecutive months and is causing serious worries. Declining in revenue will affect newly stated projects directly.

In premier services, including Rajdhani, Shatabdi and Duronto trains, to increase revenue from passengers, railways introduced flexi-fare system. Initially flexi fares showed a good response but then the bookings dipped causing serious concerns over the future of flexi fare system.

To increase revenue railways also curbed out concessions offered to children, NRIs and even senior citizens if they travelled with their family which again did not helped in revenue addition significantly.

Railway officials say that ongoing price war by airline operators offering cheaper air tickets than Railways 2-tier AC coaches on several main routes are snatching away passengers from railways. Any premium or Suvidha train tickets is costlier for a family of four compared to air tickets. Also with roads are getting better every year connecting major cities directly through express ways, passengers are happy to opt affordable luxury public transport especially to cover 500kms to 700kms like Delhi-Chandigarh, Delhi-Jaipur, Mumbai Ahmedabad etc.

Since the Railways has announced projects like expansion and modernisation of rail networks with Bullet trains, semi and high speed trains and new variety of trains like Humsafar, Tejas, Gatiman, Deendayalu with higher tariffs such decline is causing serious concerns in railway ministry and forcing them to take desperate measures.