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

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Passenger Fares for different classes<br />

• Non suburban bus<strong>in</strong>ess must be self susta<strong>in</strong><strong>in</strong>g.<br />

• Fares for Second Class Ord<strong>in</strong>ary <strong>and</strong> Sleeper Class need<br />

to be <strong>in</strong>dexed dto <strong>in</strong>put costs toelim<strong>in</strong>ate i t losses.<br />

• Suburban bus<strong>in</strong>ess may cont<strong>in</strong>ue to need partial <strong>and</strong><br />

controlled subsidization.<br />

• Subsidy to suburban bus<strong>in</strong>ess must be capped <strong>in</strong><br />

f<strong>in</strong>ancial terms for transparency.<br />

• Suburban fares should be <strong>in</strong>dexed to fuel costs.*<br />

• Products <strong>and</strong> prices need to focus sharply on the target<br />

segment.<br />

Tuesday, September 06, 2011 INDRA GHOSH, Adviser/Rates Slide No. 112

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