Parliamentary committee says Railways should review AC class fares to boost passenger revenues

Wed Dec 11 16:00:25 UTC 2024: ## Indian Railways Urged to Boost Passenger Revenue to Increase Profits

**New Delhi, December 11, 2024** – A Parliamentary Standing Committee on Railways has called for significant reforms within the Indian Railways to improve its financial health. The committee’s draft report highlights a stark disparity between freight and passenger revenue, with passenger earnings significantly lagging behind. For the fiscal year 2024-25, passenger revenue is budgeted at ₹80,000 crore, compared to ₹1,80,000 crore for freight.

To address this imbalance, the committee recommends a comprehensive review of passenger fares across different train classes, particularly advocating for adjustments to AC class fares to better reflect costs. The report also emphasizes the need to increase private sector involvement in railway infrastructure development.

The committee noted the record-high annual plan of ₹2,65,200 crore for 2024-25, alongside a budget allocation of ₹54,113.78 crore for rolling stock – a ₹156 crore increase over the previous year. However, concerns were raised about the unmet coach production targets for 2023-24, prompting a call for increased production capacity. The report further urges a faster replacement of older ICF coaches with safer and more comfortable LHB coaches, suggesting repurposing the ICF coaches for freight.

Addressing the significant net social service obligation of ₹40,190 crore in 2022-23, the committee recommends a review of losses across various services, including catering, and emphasizes the need to provide quality food at competitive prices. The committee also suggests exploring revenue generation opportunities through better utilization of advertising space and railway land holdings, including developing commercial complexes near stations.

Finally, the committee identified land acquisition as a major hurdle in infrastructure project completion, recommending policy changes to expedite the process. The report underscores the need for urgent action to improve the financial viability and efficiency of Indian Railways.