
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.