Lok Sabha Question No. 2152 (UNSTARRED), answered on 2017-03-15
Subject: Hike in Fares
Ministry: RAILWAYS
Asked by: MAULANA BADRUDDIN AJMAL

## GOVERNMENT OF INDIA MINISTRY OF RAILWAYS

## LOK SABHA UNSTARRED QUESTION NO.2152 TO BE ANSWERED ON 15.03.2017

## HIKE IN FARES

2152.  SHRI BADRUDDIN AJMAL:

Will the Minister of RAILWAYS  be pleased to state:

- (a)  whether  train  fares  and  freight  charges  have  been  increased manifold during the last three years;
- (b) if so, the details thereof, year-wise;
- (c) the reasons for the hectic increase; and
- (d)  the  types  and  percent  of  taxes  that  are  imposed  on  train  fare currently?

## ANSWER

## MINISTER OF STATE IN THE MINISTRY OF RAILWAYS (SHRI RAJEN GOHAIN)

- (a) to (d) A Statement is laid on the Table of the House.

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STATEMENT REFERRED TO IN REPLY TO PARTS (a) TO (d) OF UNSTARRED QUESTION NO. 2152 BY SHRI BADRUDDIN AJMAL TO BE ANSWERED IN LOK SABHA ON 15.03.2017 REGARDING HIKE IN FARES

(a) & (b) The details of increase in Passenger fares and Freight rates during the last three years are as under:-

## Passenger Fare:

In  2014-15  Passenger  fares  for  all  classes  were  increased  from 25/6/2014  by  14.2%  inclusive  of  4.2%  on  account  of  Fuel  Adjustment Component  (FAC).  However,  there  was  no  increase  in  Second  Class (Ordinary) Suburban fares upto a distance of 80 kilometers.

During 2015-16 Passenger fares have not been increased, however, the minimum  chargeable  passenger  fare  for  Second  Class  Non-suburban services has been increased from ₹ 5 to ₹ 10 to bring it at par with the rate of  Platform  tickets  from  22.11.2015.  The  Flexi  fare  system  has  been introduced in Rajdhani/Duronto and Shatabdi trains from 09.09.2016. Under this system, the base fare increases by 10% with every 10% of berths sold subject  to  maximum  prescribed  limit  of  1.5  times  in  classes  Second  Air Conditioned, Sleeper, Second Sitting (Reserved), Air Conditioned Chair Car and  1.4  times  in  Air  Conditioned  3-Tier.  From  01.01.2017,  it  has  been decided  to  allow  10%  rebate  in  basic  fare  on  vacant  berths/  seats  after preparation  of  first  chart  in  all  trains  including  Rajdhani,  Shatabdi  and Duronto trains on an experimental basis for six months. Provision of Tatkal quota has been reduced in flexi fare trains from maximum 30% to 10% of the total berths availability. Apart from above, from 20.12.2016 discounted fare has been offered for the passengers of Jaipur-Ajmer and Ajmer-Jaipur in 12015/12016 New Delhi-Ajmer Shatabdi Express and for the passengers of Bengaluru  City-Mysuru and  Mysuru-Bengaluru  City  in  12007/12008 Chennai Central - Mysuru Shatabdi express on an experimental basis for a period of six months.

## Freight:

During 2014-15 Freight rates for all commodities were increased from 25/6/2014  by  6.5%  inclusive  of  1.5%  on  account  of  Fuel  Adjustment Component (FAC).

During  2015-16  the  Freight  rates  were  increased  by  10  percent  along with  rationalization  in  distance  slabs.  However,  while  there  was  no increase  in  freight  rates  in  case  of  Salt  for  human  consumption,  the increase in case of Coal, Cement, Iron Ore Steel, Iron Ore and Petroleum products was lower due to reduction in classification of these commodities. Recently, classification of Coal & Coke has been rationalized from Class-145 to Class-145A along with rationalisation of distance slabs from 24.08.2016. The Coal Terminal Surcharge (CTS) has also been levied at the rate of ₹ 55/- per tonne at both loading and unloading terminal over and above the Base Freight Rate of Class-145A for the distance beyond 100 kms. This rationalization has resulted in reduction in rates on long leads due  to  reduction  in  distance  slabs  beyond  700  km.  For  example  the percentage reduction in freight rates for distance between 1501 to 2000 km is  in the range of 4% to 13%, while beyond 2000 km the reduction is in the range of 9% to 15%.

The Government has initiated  various  freight  rationalisation  measures which  have  resulted  in  decrease  in  freight  rates.  Besides,  various  other administrative measures have also been taken to promote 'Ease of doing business'. Some of these steps are as under:

- 1) Withdrawal of Port Congestion Charge from 13.04.2016.
- 2) Extension of Automatic Freight Rebate scheme for traffic loaded in empty flow direction upto 31.03.2017.

- 3) Withdrawal  of  Busy  Season  Charge  for  traffic  loaded  in  BCN group and BCNHL wagons w.e.f. 01.05.2016 till 30.06.2016.
2. 4)
3. Withdrawal of dual freight policy for iron ore w.e.f. 10.05.2016.
- 5) Re-introduction of short lead concession and reduction of minimum  distance  for  charge  from  125  km  to  100  km  w.e.f. 15.07.2016
- 6) BCN group permitted for two point booking and mini rake w.e.f. 15.03.2016.
- 7) Distance for mini rake increased from 400 km to 600 km w.e.f. 15.03.2016.
- 8) A liberalised policy with delegation of power to Zonal Railways introduced for two point booking of covered wagons in which any two  stations  within  a  distance  of  200km  in  busy  season  and 400km in lean season have been permitted for two point booking w.e.f. 22.07.2016.
- 9) Rationalisation of Merry-Go-Round (MGR) system w.e.f. 01.04.2016,  which  has  led  to  reduction  in  freight  rate  to  the extent of 80%.
- 10) Proliferation  of  Roll-on  Roll-off  (RORO)  service  launch  on  ECR from 25.05.2016 and subsequently on all Indian Railways.
- 11) Permission to notify Group I and Group II station/ goods sheds as CRTs for lift on-lift off operations w.e.f. 12.07.2016.
- 12) Charging  of  commodities  for  transportation  by  containers  has been liberalised. 43 additional commodities de-notified for charging at FAK rates w.e.f. 02.09.2016.
- 13) Guidelines for Station to Station Rate policy issued on 29.09.2016.
- 14) Class  of  various  commodities  has  been  rationalized  and  new commodities have been added in Goods Tariff.
- 15) Instruction for  movement  of  HSD  Oil  in  BTPN  rakes  from Numaligarh refinery siding (NRSR) to Parbatipur, Bangladesh has been issued w.e.f. 13.03.2016.
- 16) The system of transportation to Bangladesh through 'Dump' and 'load adjustment' has been discontinued.

- 17) Withdrawal of levy of congestion charge for stone traffic transported  from  Eastern  Railway  to  Bangladesh  via  Darsana/ Benapole.
- 18) Weighment  of  Standard  Bagged  consignment  policy  has  been rationalized.
- 19) Discount  of  loading  of  bagged  consignment  in  open  and  flat wagons w.e.f 24.10.2016.
4. (c)  There  has  been  substantial  increase  in  the  operating  cost  of  the Railways  over  the  past  few  years.  Rajdhani/Duronto/Shatabdi  trains  are highly  prestigious  trains  with  better  facilities  in  train  service,  speed  and punctuality, etc. and highly popular and preferred over other trains on the route. Therefore, Rajdhani/Duronto and Shatabdi trains have been taken for flexi fare system.
5. (d) Service Tax equivalent to 4.50% of the total fare is being levied in First Class and all Air Conditioned classes of travel.

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