Lok Sabha Question No. 216 (STARRED), answered on 2018-12-26
Subject: Flexi-fare System
Ministry: RAILWAYS
Asked by: PARAYAMPARANBIL KUTTAPPAN BIJU, ABHIJIT MUKHERJEE

## GOVERNMENT OF INDIA MINISTRY OF RAILWAYS

## LOK SABHA STARRED QUESTION NO. 216 TO BE ANSWERED ON 26.12.2018

## FLEXI-FARE SYSTEM

*216. DR. P.K. BIJU: SHRI ABHIJIT MUKHERJEE:

Will the Minister of RAILWAYS be pleased to state:

- (a)  whether  it  is  a  fact  that  after  introduction  of  UDAN  scheme  and flexi-fare system, Railways have lost their premium trains 'patronage' and  experienced  fall  in  passenger  traffic  and  if  so,  the  reasons therefor;
- (b)  whether  CAG  in  its  latest  report  has  strongly  observed  against Railways on flexi-fare system and if so, the details thereof;
- (c) whether the passengers are opting to travel by Airlines instead of trains  because  of  UDAN  Scheme  and  flexi-fare  system,  which  is without value addition and if so, the details thereof;
- (d) the details of the revenue earned by the Railways through flexi-fare scheme since its inception, year-wise; and
- (e)  whether  the  Railways  intends  to  introduce  the  dynamic  pricing mechanism  for  all  mail  and  express  trains  only  during  the  peak seasons and if so, the details thereof?

## ANSWER MINISTER OF RAILWAYS AND COAL (SHRI PIYUSH GOYAL)

(a) to (e): A Statement is laid on the Table of the House. *****

STATEMENT  REFERRED  TO  IN  REPLY  TO  PARTS  (a)  TO  (e)  OF STARRED  QUESTION  NO.  216  BY  DR.  P.K.  BIJU  AND  SHRI  ABHIJIT MUKHERJEE  TO  BE  ANSWERED  IN  LOK  SABHA  ON  26.12.2018 REGARDING FLEXI-FARE SYSTEM (a) No,  Madam.  Number  of  passengers  booked  in  the  trains  having flexi fare has registered an increase of 0.95% for the period September 2016 to August 2018 (Flexi Fare period) as compared to corresponding period of previous  years (Non Flexi Fare period). (b) The Comptroller and Auditor General (CAG) in their report no. 5 of 2018 have observed that after the introduction of flexi-fare system in premium trains, fewer passengers travelled in these trains. However, the position is as under:(i).  Number  of  passengers  booked  in  the  trains  having  flexi  fare  has registered  an  increase  of  0.95%  for  the  period  September  2016  to August 2018 (Flexi Fare period) as compared to corresponding period of previous  years (Non Flexi Fare period). (ii).  The  CAG  report has assessed  the first 11 months  of the implementation  of  Flexi  Fare  system.  Since  Advance  Reservation Period (ARP) of trains is 120 days, the actual assessment would have been only four months after introduction of this scheme on 09.09.2016. Besides,  the  months  of  February  2017  and  March  2017  were  lean period  when  normally  most  of  the  trains  have  comparatively  lower occupancy. (iii). Trains with  Flexi fare i.e.,  Rajdhani,  Shatabdi  and  Duronto constitute  only  approximately  1.11%  of  total  number  of  trains  over Indian Railways. First four months after introduction of Flexi fare consists of Advance Reservation  Period.  This  was  followed  by  lean  period  for  passenger traffic.  Therefore,  initial  drop  in  occupancy  in  trains  with  flexi  fare does not indicate drop in overall occupancy over Indian Railways.

(iv).  Occupancy  of  the  trains  varies  during  peak,  non-peak,  festival seasons, special occasions and weekends etc. Therefore, sometimes the trains run with higher occupancy (more than the berth potential) and sometimes during non-peak periods, some berths remain vacant.

(c): Railways and Airlines are different modes of transport, which are not  comparable  in  the  terms  of  volume,  connectivity  as  well  as convenience.

There  is  no  fixed  maximum  limit  of  fare  in  Airlines  whereas Railways  have  fixed  maximum  fare  throughout  the  year.  Airline  fare varies significantly depending on time of operation, stoppages, travel duration, Origin -  Destination pair,  carrier etc. Railways' fare may or may not be higher than the air fare depending upon the class  of  travel as well as the peak or lean periods. It is the choice of the passengers to opt either for Railway or Airlines as per their convenience.

- (i).  Alternative  train  services  on  normal  fare  structure  are  available over Indian Railways on the routes of Rajdhani, Shatabdi and Duronto trains.
- (ii).  Railway  also  serves  a  large  number  of  passengers  boarding/deboarding at intermediate stations.
- (iii). The average occupancy of all reserved accommodation including routes  of  flexi  fare  trains  during  2015-2016  (Non-flexi  period)  was 101.15% which has gone up to 105.80% in 2017-18 (Flexi period).

This shows that overall there has been no loss of traffic by Indian Railways to other mode of transport like Airlines.

(d):  Additional earnings due to flexi fare upto November 2018 are as under:

| Period                       |   Additional earnings (Approx.) ( ` i n Crore) |
|------------------------------|------------------------------------------------|
| September 2016 to March 2017 |                                            371 |
| April 2017 to March 2018     |                                            864 |
| April 2018 to November 2018  |                                            601 |
| Total                        |                                           1836 |

(e):  At  present  there is no proposal to extend the scope of flexi fare scheme in all Mail/Express trains.

However,  flexi  fare  scheme  in  Rajdhani,  Shatabdi  and  Duronto trains has been rationalized as under:-

(i). Discontinuation of Flexi fare scheme from 15 trains for full year and from 32 trains during pre defined lean period of 3 months (February, March & August).

(ii). Maximum cap of flexi fare scheme has been reduced to 1.4 times in all flexi fare applicable classes.

(iii).  Graded  discount  has  been  introduced  in  flexi  fare  trains  and Humsafar trains, where class-wise occupancy is less than 60%, 4 days prior to scheduled departure of the train as under:-

| Occupancy   | Discount         |
|-------------|------------------|
| Up to 70%   | 20% on last fare |
| 70 to 80%   | 10% on last fare |
| Above 80%   | Nil              |

The above changes have been implemented with effect from 15-03-2019 (after advanced reservation period).

*****