Lok Sabha Question No. 3000 (UNSTARRED), answered on 2016-03-16
Subject: Increase in Fare
Ministry: RAILWAYS
Asked by: S. RAJENDRAN

## GOVERNMENT OF INDIA MINISTRY OF RAILWAYS

## LOK SABHA UNSTARRED QUESTION NO.3000 TO BE ANSWERED ON 16.03.2016

## INCREASE IN FARE

3000. SHRI S. RAJENDRAN:

Will the Minister of RAILWAYS be pleased to state:

- (a) the number  of times passenger and freight fares were increased  in  the  last  two  financial  years  including  the  current financial year, respectively;
- (b)  the  details  of  increase  along  with  the  additional  revenue earned through each hike;
- (c)  whether  it  is  a  fact  that  the  fare  of  Second  AC  in  Rajdhani Trains is more than or equivalent to the airfare when booked one month earlier;
- (d) if so, the reasons therefor; and
- (e) whether the railways have benefited from fall in the prices of crude oil and if so, the details thereof?

## ANSWER

MINISTER OF STATE IN THE MINISTRY OF RAILWAYS

(SHRI MANOJ SINHA)

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

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STATEMENT  REFERRED  TO  IN  REPLY  TO  PARTS  (a)  TO  (e)  OF UNSTARRED QUESTION NO.3000 BY SHRI S. RAJENDRAN TO BE ANSWERED IN LOK SABHA ON 16.03.2016 REGARDING INCREASE IN FARE

(a) &  (b)  The  details  of  increase  in  Passenger  fares  and  Freight rates along with revenue generated during financial year 2014-15, 2015-16 and 2016-17are as under:

## Passenger:

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.  This  has  generated  an  additional  revenue  of  around ₹4000 crore in that year.

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 from 22.11.2015,which is expected to generate an additional revenue of to bring it at par with the rate of Platform tickets around ₹35 crore.

There is no increase in Passenger fares in 2016-17.

## 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).  This  was  to  generate  an additional revenue of around ₹4000 crore in that year.

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.  With  the  above  changes, Railways have generated an additional revenue of ₹ 4690 crore up to the end of January 2016 compared to the last year.

There is no increase in Freight rates in 2016-17.

(c) & (d) Indian Railways do not maintain the fares of airlines and hence it is not possible to compare the same.

(e) Due  to  fall in the  prices  of  crude  oil  and  reduction  in consumption with measures to improve efficiency,  Railways  has saved approximately ₹ 910 crore in 2014-15 and ₹ 2100 crore in 2015-16.

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