CAG finds faults in railway's flexi-fare scheme

Criticising the Flexi-fare system in the railways, the CAG has warned the scheme could "force" passengers to opt for airlines.

The Comptroller and Auditor General of India (CAG) in its report for year ending March 2017, has stated that while the introduction of the flexi-fare system in premium trains -- Rajdhani, Shatabdi and Duronto -- has led to increase in passenger earnings in this category of trains to Rs 552 crore, they have carried 6.75 lakh fewer travellers during September 9, 2016 to July 31, 2017, compared to the corresponding period in 2015-2016.

"Wherever dynamic/enhanced fare was introduced, the occupancy was very low. However, this aspect was not taken into consideration while introducing the flexi fare system in all Rajdhani, Duronto and Shatabdi trains irrespective of demand and occupancy.

"Even in AC 3 class, which was one of the most profitable classes, the occupancy dropped significantly after the introduction of flexi fare and the vacant berths increased from 0.66 per cent in pre-flexi period to 4.46 per cent in post-flexi period," the report stated.