Saturday, 15 February 2014

Demand based railway fare–a way to facilitate fare hike:

Indian Railways are introducing more of Premium trains which are supposed to have much better look and space for the passengers. These faster trains are designed on the pattern of aircrafts with similar look and comfort. The main feature is that the fare of these trains would be determined based on demand as from the passengers obviously meaning more the demand more the fare. There is no hike in passenger fare in the new budget presented by the Minister of Railways, Mallikarjun Khadge, but it is taken care of by introducing demand based fare applicable in the case of Premium Trains to start with. What can impliedly be understood is the fact that if this experiment of fare on demand succeeds, of which there is enough of possibility, this parameter may well be applied in the matter of fare in general in all other trains. Formation of Rail Traffic Authority of India is the significant move in this direction. This interim railway budget had to be a populist one in view of the coming general elections but the idea of demand based fare is the one in the direction of creating a platform to enhance the fare subsequently.

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