Railways to tweak flexi fares in drive to increase revenue

New Delhi: The flexi fare system seems to have hit the railway finances hard with many seats in premier trains like Duronto and Shatabdi remaining vacant. The railways has now decided to make a few changes in the system introduced in September 9.

Top sources said that there is an intense tug of war between railways and the finance ministry over generation of additional revenue through increase of fares. The railways feels that any further increase will only drive passengers towards flights, with AC two-tier being the worst hit and this is the reason why it wants to tweak  the flexi fare system.

At present, the fares of Rajdhani, Duronto and Shatabdi can go up to 50 per cent more than the base fare as per the flexi fare system.

Senior officials said that as per a decision expected to be notified shortly, the higher fares in premier trains can go up to 40 per cent instead of earlier 50 per cent ceiling after finalisation of the reservation chart.

Apart from this, vacant berths available after the finalisation of the chart will be offered at 1.4 times higher than the base fare instead of current practice of 1.5 times increase, the official said. There were 5,871 vacant berths in Rajdhani, Shatabdi and Duronto trains during September 9-October 31 this year, according to data available.

If a passenger wants to travel after the finalisation of the chart then he can avail it by paying only 40 per cent higher than the base fare instead of 50 per cent, subject to availability of berths, he said.

Under the flexi-fare scheme, the fare increases by 10 per cent with every 10 per cent of berths sold subject to maximum prescribed limit 1.5 times in sleeper, 2AC, AC chair car and in 3AC class. No change has, however, been made in the fare for 1st AC and Executive Class of travel.

Railways is expecting to earn Rs 500 crore in current financial year from flexi fare structure in 42 Rajdhanis, 46 Shatabdis and 54 Durontos.