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Railways Urged to Revamp AC Fares for Better Revenue

Railways Urged to Revamp AC Fares for Better Revenue

The parliamentary committee on Railways has urged the government to boost revenues from AC class fares by adopting a dynamic pricing model and ensuring affordability for low-income passengers. This strategy aims to balance social responsibilities while improving financial performance. Recent trends show a significant shift, with revenues from AC classes projected to reach 54% of total passenger revenues in 2024-25. The committee also emphasized the need for targeted subsidies for non-AC travel and better operational efficiency through modern technologies. Overall, a comprehensive approach is essential for enhancing the financial health of Indian Railways.

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