Flexi Fare helps Indian Railways earn crores despite no hike in fares

It was January 2020 that the Indian Railways increased passage fare which ranged from 1 to 4 paisa per kilometre for different classes.

But from April 2020 to October 2022, the Railways earned at least Rs 1,619 crore additional revenue from flexi flare scheme, as per a report published by News18, accessing data from the Railway ministry.

The flexi fare scheme has been running on premium trains since 2016.

In 2019-20, the flexi fare helped the Railways earn Rs 823 crore. From 2019 to October 2022, the scheme helped the Railways generate an additional revenue of Rs 2,442 crore.

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In 2020-21, Railways only got Rs 365 crore under the scheme, all thanks to Covid pandemic.

In 2021-22, the earnings stood at Rs 574 crore. In this financial year, up to October, it has further increased to Rs 680 crore, the report said.

More on Flexi Fare

As per the scheme, the fare increases by 10 per cent with every 10 per cent of berths sold subject to a maximum limit. However, it doesn’t apply to First AC and Executive class.

It was introduced with an eye on recovering losses and to ensure passengers get a better travelling experience.

However, there have been complaints that the tickets under the scheme sometimes become too expensive.

“Alternative trains are always available for passengers on normal fare on similar routes. They can opt for those trains, if they wish. Rajdhani, Shatabdi and Duronto trains are highly prestigious trains with better facilities, service, speed and punctuality,” the publication quoted an official as saying.

It was in 2014 that the Railways had increased its fare across all classes by 14.2 per cent. After that, it was only in 2020 that it increased its fares marginally with an eye on better passenger facilities and amenities.