Doing away with rail fare subsidy
GOVERNMENT OF INDIA
MINISTRY OF RAILWAYS
RAJYA SABHA
QUESTION NO 2385
ANSWERED ON 04.08.2017
Doing away with rail fare subsidy
2385 Shri Ritabrata Banerjee
Will the Minister of RAILWAYS be pleased to satate :-
(a) whether it is a fact that Government is planning to do away with rail fare subsidies; and
(b) if so, the details thereof and the reasons therefor?
ANSWER
MINISTER OF STATE IN THE MINISTRY OF RAILWAYS (SHRI RAJEN GOHAIN)
(a) & (b) During the year 2015-16 (latest available), the overall losses in Passenger services (Suburban and Non-suburban) were Rs.35038 crore, which are 43% of the expenses incurred on passenger services. Indian Railways traditionally cross-subsidizes the loss in passenger segment by freight earning. Indian Railways extend a number of concessions to various categories of passengers. On this account, total revenue forgone during the year 2015-16 was approximately Rs.1600 crore out of which, the revenue forgone on account of concession to senior citizens comes to around Rs.1286 crore.
Evaluation of various alternatives relating to rationalization of passenger fare is an ongoing process. There is already a provision for giving up concession in fare for senior citizens. An initiative has been introduced by Ministry of Railways from 15.07.2017 wherein senior citizens can opt to give up the element of concessional amount upto 50% or 100%.