To address the significant revenue disparity between the passenger and freight segments, which is affecting Indian Railways’ financial health, the parliamentary standing committee on railways has recommended reviewing air-conditioned (AC) class fares. The goal is to reduce revenue losses while ensuring that general class travel remains affordable.
“Fare Adjustments and Cost Optimizations for Improved Financial Performance”
Chaired by BJP MP C. M. Ramesh, the committee stressed the importance of evaluating fares across different train classes to boost passenger revenue. It emphasized that while general class travel should remain affordable for the public, AC class fares need to be aligned with operating costs to reduce losses.
The committee also recommended that Indian Railways optimize operational expenses for passenger trains to keep ticket prices affordable. In response, the Ministry of Railways clarified that annual concessions amounting to Rs 56,993 crore, including a 46% ticket discount, make it unlikely to reinstate senior citizen discounts. The panel further highlighted inefficiencies in services like catering, suggesting their elimination to improve financial performance. It proposed offering quality food at competitive prices to ease the financial burden of catering-related social service obligations.
“Committee Calls for Private Sector Role in Railways, Defends Infrastructure Investment”
Regarding privatisation, the committee recommended greater private sector involvement in Indian Railways’ infrastructure. This follows a heated debate in the Lok Sabha over the Railways Amendment Bill, 2024, which some lawmakers criticized as a move toward privatisation. However, Union Railways Minister Ashwini Vaishnaw defended the bill, rejecting these allegations. The committee’s report also emphasized the need for substantial capital investment to modernize Indian Railways’ infrastructure and increase planned expenditure to enhance its overall performance.
