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News Entry# 287978
Dec 08 2016 (14:36)  Suresh Prabhu proposes: Give up your Railway ticket subsidy (indianexpress.com)
News Entry# 287978   Blog Entry# 2084261     
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Posted by: Jayashree ❖ Amita*^  35199 news posts
While the passenger business is approximately a Rs 50,000-crore pie, Railways is staring at a shortfall of at least Rs 20,000 crore by the end of this fiscal.
Asking people to give up their fare subsidy voluntarily, special weekend fares for some trains, last-minute discounts on vacant berths — these are some of the ideas proposed by Railways Minister Suresh Prabhu to boost the earnings of the Indian Railways.
Prabhu sent the suggestions in a note to the Railway Board on November 24. Sources said relevant policy interventions would be firmed up in
a few days.
However, officials said, asking people to give up their fare subsidy may prove tricky.
In the case of the Petroleum Ministry, the bank accounts of customers were linked to their LPG connections. So it was easier to ask people to give up their cooking gas subsidy.

Since a similar model may not work for the Railways, a new structure is being worked out, starting with a pilot project for e-tickets only.
For some time now, the Railways has been stating on its tickets that only 57 per cent of the cost of the journey is recovered through the fare. This gives the impression that 43 per cent is the quantum of subsidy on each ticket, although the current accounting system in the department does not give the exact cost.
The department is now in the process of overhauling its accounting system. For the pilot project, ideas like providing some “slabs” of subsidy surrender are doing the rounds. This means that a passenger may get to choose how much of the subsidy he is willing to give up.
Prabhu has also stressed on special fares for sectors in popular Rajdhani/ Shatabdi routes which do not see much patronage. Sources close to Prabhu said this move could be a way to compete with other commercial transport options in the sub-200-km distance category.
Currently, a tentative last-minute discount of 10 per cent on vacant berths is being discussed. Prabhu has said that rationalisation of the last “flexi-fare” to get passengers for vacant berths would be a good idea. However, the issue of informing the public about the last-minute vacancies is yet to be resolved.
Senior officials said the ideas would be implemented in various forms because the Railway Board had found them useful and doable.
Meanwhile, Railways is in the process of linking its various passenger concessions with Aadhaar, starting with concessions for senior citizens.
While the passenger business is approximately a Rs 50,000-crore pie, Railways is staring at a shortfall of at least Rs 20,000 crore by the end of this fiscal.

25 posts - Thu Dec 08, 2016 - are hidden. Click to open.

Dec 09 2016 (00:48)
DhnEcr~   4149 blog posts
Re# 2084261-27            Tags   Past Edits
Despite carrying such capacities 3 to 4 times Suburban makes such losses. This gives a clear view of how low its fares are. And even I have traveled in it, so know their pain and troubles. But these low fares are responsible why there are hardly any facilities. Just compare a ride in Metro and MEMU to know the difference. However crowded (Yellow or BLue line DMRC) but they are still comfortable as they have seats only on side and max people stand, while for MEMU coaches have more seats and less space to stand. Whiles fares are higher Metro does not run empty.
As for Sleeper classs they can simply fix a rate say 50 paise per km (D>200km), include
SMB for more WL clearance and issue non seat just travel tickets to help day time passengers who have to board SL coaches due to overcrowding in General bogies.

Dec 09 2016 (08:29)
PragadeshSK*^~   13606 blog posts   2 correct pred (100% accurate)
Re# 2084261-28            Tags   Past Edits
rich or poor citizens can get their basic need at low cost. public transport is duty of Government. it is their duty to give it at low cost as much possible whether the people travelling is rich or poor.

Dec 09 2016 (08:31)
PragadeshSK*^~   13606 blog posts   2 correct pred (100% accurate)
Re# 2084261-29            Tags   Past Edits
the problem lies when demand is far more than supply. IR infrastructure is not well developed to cater needs of people. if that was done we neednot to see things like ticketless travellers and UR people entering SL coaches.

Dec 09 2016 (09:12)
Ashu~   321 blog posts   228 correct pred (72% accurate)
Re# 2084261-30            Tags   Past Edits
Compliance by passengers is a very mature activity. However, such maturity is rarely seen. It is difficult to change the attitude of people who use subsidies even if they are capable to travel without it. Direct benefits transfer will be effective,like it is working well for LPG subsidy.
Railways should have diverse thoughts on generating more revenue. Like, more tech upgrade as seen in the case of Delhi Metro, where automatic ticket checking machine gives in/out access to a metro station. No one should be left ticket less. Besides, advertising on station premises, train coaches,etc also may help in increasing revenue. I remember advertisement of Bingo chips on Mysuru railway station using Public Address system( Bingo railway station ad - Mysore:
click here It worked well for ITC(Bingo) as well as Railways. Such innovative ideas must be tried out for increased revenue.

Dec 09 2016 (09:14)
©The Dark Lord™~   4155 blog posts
Re# 2084261-31            Tags   Past Edits
Non-reserved SL class ticket facility is already there in many zones like ECR & NER. I frequently travel from BJU to MFP in SL of 12554 with that ticket.

Dec 09 2016 (11:43)
PragadeshSK*^~   13606 blog posts   2 correct pred (100% accurate)
Re# 2084261-32            Tags   Past Edits
it is the benefit government giving to its citizen. y one shouldnt use that. being rich should not go to govt school or colg is ridiculous and that will be against equality for which public departments are created. Implementing electronic signalling, electronic interlocking, use of advanced ticketing technology, Power saving locos will drastically decrease running time as well as power needed. Which saves IR pocket than to go for advertisements in tickets coaches etc. just because of corruption and lobbies we are spending more that what is it need to be.

Dec 09 2016 (11:47)
PragadeshSK*^~   13606 blog posts   2 correct pred (100% accurate)
Re# 2084261-33            Tags   Past Edits
if government can give firewood to all no one needs LPG. so by that logic if govt gives bus for all there is no need of train

Dec 09 2016 (15:17)
DhnEcr~   4149 blog posts
Re# 2084261-34            Tags   Past Edits
Nothing and not even LPG petroleum is subsidized. The govt has fixed so much taxation that doubles the cost even triple sometimes. This was the same reason why Petroleum product were kept out of GST ambit. Do members know that RBI le CRR se petroleum taxation is one of the most lethal factors of Inflation

Dec 09 2016 (15:34)
PragadeshSK*^~   13606 blog posts   2 correct pred (100% accurate)
Re# 2084261-35            Tags   Past Edits
100% true.
Indian railways always saying they r running in loss though 80% above trains are full every day so it is clearly an administration failure. To hide that RM asking people to give up subsidy that is yet another failure. Government should make people to go for public transport here they making people to use private transport.
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