Good News for Indian Railways: Flexi fare scheme collects Rs 1500 crore between September 2016 to June 2018

In good news for financially-strained Indian Railways, its much criticised surge-pricing scheme 'Flexi Fare' has earned Rs 1500 crore between September 2016 to June 2018. "Number of passengers booked in the trains having flexi fare has registered an increase of 1.37% for the period September 2016 to June 2018 (Flexi Fare period) as compared to corresponding period of previous years (Non-Flexi Fare period). Additional earnings due to flexi fare from September 2016 to June 2018 in comparison to corresponding previous years was Rs 1500 Crore," said Rajen Gohain, Minister of State of Railways, in a written reply to a question in Rajya Sabha today.

The comparative number of passengers and earnings in Flexi fare trains for the period September 2016 to August 2017 vis-a-vis September 2015 to August 2016 were as under:

After much criticism, the railways has rationalised flexi fare scheme in Rajdhani, Shatabdi & Duronto Trains. The new rules are as under:

(i) Flexi fare scheme has been discontinued from 15 trains, with average monthly occupancy less than 50%, for the full year and from 32 trains, with average monthly occupancy between 50 to 75%, during pre-defined lean period of 3 months (February, March & August) based on their occupancies.

(ii) Maximum cap of flexi fare scheme has been reduced to 1.4 times in all flexi fare applicable classes.

(iii) Graded discount has been introduced in flexi fare trains and Humsafar trains, where class-wise occupancy is less than 60%, 4 days prior to scheduled departure of the train as under:

"In view of the above rationalisation, in certain trains, fare shall be lower and in addition, the graded discount shall also benefit the passengers," he said. 

The passengers will be able to benefit from the new flexi fare rules from March.