Indian Railways Can Soon Increase Passengers Fares: 3 Reasons Why? (Our Opinion)

Struggling economy is affecting many businesses, so Indian Railways is also getting affected by its nasty effects.

As per the reports, train travel may become expensive soon, since Indian Railways is planning to increase ticket prices.

How Would This Affect?

In addition to that, people may have to pay higher charges for purchasing platform tickets.

It will also be used for using other facilities like parking, offered by railway station, 

The reasons for increase in passengers fare could be

1. Special trains already have increased fares upto 30%
2. Loss due to lockdown needs to be recovered 
3. Redevelopment of big railway stations need more money

Indian Railways (IR) has already increased fares for the festival special trains which is  up to 30 percent higher than base fares.

Reason Behind The Increase

Here, the rise in fare is reasoned as the national transporter has suspended most of the concession schemes which were earlier applicable for such trains and regular train services.

While talking about the fares we shouldn’t forget that travel on trains in India has historically been heavily subsidised.

Which means the railways are transporting each and every passenger at a loss.

This hike in fares are a consequence of private train operations and redevelopment of big railway stations.

We should also consider here that removal of concessions for festival special trains, are not likely to make IR’s passenger business profitable anytime soon.

Here another point is private trains are free to charge any fare.

The irony is, at one side we fuss about the suspension of subsidy, while on other hand we are happy to pay in full to the private operators.

While increasing the fare for passenger trains, simultaneously railways have dropped the fares for freight transportation, seems like a healthy balance.

What Does Opposition Say?

The news got opposition to criticize the higher festive fares saying  “Modi Government is Denting the Festive Spirits for the Common Man – Government should roll back the increased fares for Festival Special Trains”.

In their defense, IR spokesperson termed the news of hikes in passenger fares during the festival season “misleading and erroneous”, citing a 2015 policy on fares for Special Trains.

According to them “such trains, run during festivals and the summer holiday season, are special fares and fixed at the rate of 10 percent of basic fare for second class and 30 percent of the basic fare for all other classes,”.

“Despite these special fares, Indian Railways bear a significant amount of financial burden for each passenger that travels” he added.