RAIL FARES - INCREASE JUSTIFIED ?
It is undisputed that any entity needs money for providing services, ungradation of capital and development. But it does not mean that the public should without questions, support mindless increase in fares by the railways, in the name of funds for upgradation, development etc. ?
It is the railways' own admission that they recover only average 57% of the cost of travel, from the travelling public (refer website railways irctc.co.in) . If we take an example of normal, one-way, III AC, Rajdhani ticket from Mumbai to Delhi, it costs Rs.2300/- approximately. That means the actual cost of the ticket is approximately 4400/-. Compare this to the cost of air-ticket, which is less than Rs.3000/- for economy class . It means the actual cost of railway travel would be more than the cost of air-travel, if the railways were to recover 100% of the fare. Is this possible or does it make sense ? It only points to inefficiency and possible misuse of funds.
In any business model, price rise is not the only solution to increase profits. Curtailing spending is also a valid exercise in increasing profits. Public is not obliged to support an inefficient organization and that too under pressure of a monopoly business.
In the name of betterment, rather than blindly supporting or suffering, the railways’ attempts to increase fares, it would be prudent to ask for a proper cost audit of the railways ticketing and spendings. What better facilities have we got with all the recent raise in fares ? Its all only on paper and the mass-managed-media-reports, not in actual fact. There is wide scale unnecessary spending, corruption in awarding contracts, buying of goods and services, tenders etc. The salary burden is high due to over-staffing and poor efficiency. If those problems are first addressed, a true picture will come out on the reasons for less profits. Only when people question them will they learn to be prudent with their spending and operations.
Prima-facie, as of today, given the comparison with air-lines’ tickets, blind support for the increase in fares, under any scheme, flexi, fixed or any other fancy name, does not appear to be reasonable. A monopoly cannot bulldoze public by false talk of development and imaginary good service. more