Railways to finalise "give up" option for subsidies

Right after the Budget, the railways is finalising an option for passengers to voluntarily "give up", the subsidy component in the tickets, either in part or full, reported Indian Express.

The decision came following their commitment to the Prime Minister to launch the initiative within the first 100 days of NDA's second term.

The "nudge policy' of the government was pointed out in the Economic Survey, it was to "gently steer people towards desirable behaviour even while preserving their liberty to choose."

The report also stated that the "subsidy" that the railways provides is not from the general exchequer but a cross-subsidy from its own freight business. The "Give it up" policy of the railways will help people to choose between giving up the subsidy for a better rail system.

Sources told Indian Express that for the suburban network, the option will be to give up subsidy on the highly under-priced monthly season ticket (MST).

The Railways had introduced the same scheme for the senior citizens in 2017, which helped them earn Rs 78 crore extra.