Fair Cut in AC chair car, executive class in Railways
To make AC train travel cheaper in sectors suffering from poor patronage, the government has decided to offer up to 25 percent discount in the base fare of “AC chair car and executive classes of all trains having AC seating accommodation”, depending on the “fares of competitive modes of transport”.
According to the Railway Board order issued on Date: 15/7/2023, zonal railways will monitor trains for 30 days, and if the occupancy is less than 50 percent in AC chair car and AC Executive class, they can offer up to 25 percent cut in the base fare to “optimise utilisation of accommodation in trains”. The policy is expected to benefit marquee trains like Shatabdis, Vande Bharats and others where the Railways is facing competition from buses for short distance travel.
The recently launched Indore-Bhopal Vande Bharat faces competition from luxury buses whose operators are quick to calibrate their fares as per the demand. The new policy empowers the local rail administration to compete in terms of fare if its occupancy remains less than 50 percent for a month. The discount is applicable only on the base fare, while other charges like reservation charge, Superfast surcharge, GST etc, as applicable, will be levied separately.
“The fares of competitive modes of transport shall be the criteria while deciding the quantum of discount,” says the order. The zones can decide for how long the discounted fares should be offered. They will carry out periodic reviews based on which the discounts can be withdrawn. The discounted fare can also be offered on specific legs of the journey.
For instance, if the Ajmer-Delhi Cantonment Vande Bharat has less than 50 percent occupancy between Ajmer and Jaipur, the discount can be offered only for that leg of the journey. The discount can also be offered for end to end journeys, as the case may be.
If all other criteria are fulfilled, the discount may also be allowed onboard by the TTE. The discount will be with immediate effect, which means that those who have already booked tickets at higher fares, will not get any refund. Tatkal quota will not be available for sectors where this discount is applied, says the order.
The move is aimed at making train travel popular in sectors where it is facing competition from other modes of transport. With the zonal railways empowered to decide on offerings discounts, it is expected to benefit marquee products like the Vande Bharat, especially on new routes.
