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Costing and Pricing Issues in Transport Sector - Indian Railways ...

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Passenger Fares for different classes<br />

• Suffers from absence of co–relation between tariff <strong>and</strong><br />

<strong>in</strong>put cost.<br />

• Upper Classes rendered d uncompetitive by repeated tdprice<br />

hikes <strong>in</strong> the past.*<br />

• Inadequate appreciation of what ‘customer can pay’ .*<br />

• No formalized mechanism to identify customer needs<br />

<strong>and</strong> perceptions.*<br />

p<br />

• Consequent unfettered expenditure on ‘passenger<br />

amenities’ with loosely def<strong>in</strong>ed st<strong>and</strong>ards.<br />

• Losses on passenger services are not transparent.*<br />

• Suburban services <strong>and</strong> MSTs highly subsidized.<br />

Tuesday, September 06, 2011 INDRA GHOSH, Adviser/Rates Slide No. 110

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