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This is an archive article published on July 26, 2006

Lalu plans fare cut to improve train occupancy

Having won plaudits for not raising passenger fares in three consecutive Rail Budgets, Railway Minister Lalu Prasad Yadav is now planning to further slash passenger fares on select trains in a serious bid to improve train occupancy. Also on the cards is the introduction of online auction of rail tickets a la airlines.

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Having won plaudits for not raising passenger fares in three consecutive Rail Budgets, Railway Minister Lalu Prasad Yadav is now planning to further slash passenger fares on select trains in a serious bid to improve train occupancy. Also on the cards is the introduction of online auction of rail tickets a la airlines.

Reliable sources in the Railway Ministry have told The Indian Express that the ministry is contemplating introducing differential fares on some of the so-called ‘‘unpopular trains’’ during lean periods. The move is likely to be announced during the forthcoming Parliament session, said sources.

‘‘Data shows that out of the 1,100 Mail and Express trains running daily, around 25 per cent have over 100 per cent occupancy while another 25 per cent run on less than 25 per cent occupancy. For us, a vacant seat is a lost seat. So … we will now offer those seats at a lower cost and earn something out of it,’’ said a senior official.

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‘‘The market would decide on the rate of the fare cut. The reduction could also vary from one train to another,’’ said the official. Sources further added that on some routes with extremely poor occupancy, the cut in fare could be as high as 50 per cent and would initially be introduced for the lean period between July and October 31. Long distance routes like Delhi-Chennai and Delhi-Kolkata could be the first ones to be taken up for the fare cuts.

Rail Bhawan is also planning to auction tickets for select trains on the Internet. ‘‘A detailed exercise is being undertaken wherein we are studying the occupancy patterns of various trains at various times during a year. Based on the data, we would put up these seats for auction on the Internet,’’ said an official.

‘‘A mininum reserve price would be accorded to these seats and they will be sold through online bidding,’’ he added. Improving train occupancy has climbed up the Railway Ministry’s agenda in recent months. Various methods, ranging from improving services and punctuality of unpopular trains to cutting their coaches to add to other trains, have been experimented with. Also, the Upgradation Scheme, which upgrades full fare paying waiting list passengers to the next higher class against available vacant accommodation, has worked wonders for the Railways.

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