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

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Passenger Fares for different classes<br />

• Spread between the highest <strong>and</strong> the lowest fares needs to<br />

be reduced.<br />

• Suburban b fares should ldbe <strong>in</strong>dexed dto <strong>in</strong>put costs.<br />

• MST fares should be <strong>in</strong>creased from 15 journeys to 25 <strong>in</strong><br />

steps of 2 journeys per year.<br />

• Second Class Mail/Express fares to be <strong>in</strong>creased @ 5%<br />

per year to elim<strong>in</strong>ate losses.<br />

• No subsidy to Second Class Ord<strong>in</strong>ary Fare.<br />

• SuburbansubsidytobelimitedtoMSTsonlybywayof<br />

percentage discount of fare derived d from Second Class<br />

Ord<strong>in</strong>ary fares.<br />

• Variable pric<strong>in</strong>g to be <strong>in</strong>troduced for revenue generation<br />

from popular tra<strong>in</strong>s.*<br />

Tuesday, September 06, 2011 INDRA GHOSH, Adviser/Rates Slide No. 111

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