Suresh Prabhu turned around the populist logic of launching new trains in every rail budget by announcing new types of trains—Humsafar, Utkrisht Double-decker Air-conditioned Yatri (UDAY), Gatimaan and Tejas—in this year’s railway Budget. Prabhu’s decision comes at a time when the purchasing power has improved and more people today prefer to fly, rather than take a train thanks to competitive airfares. So, it makes sense to launch faster trains that offer a greater degree of comfort to passengers, at a higher price. As if all that was not enough, there are the Suvidha trains where the base fares match the tatkal rates and prices will rise dynamically with every 20% increase in bookings with a cap at three times the tatkal rate. That’s smart as passengers start paying more for faster trains, it would over time help revive the fortunes of the Indian Railways where the operating ratio—operating expenses as a percentage of revenues—at 90.2% is expected to rise to 92% this year on an increased wage and pension bill after the Seventh Pay Commission award.
Most new trains that Prabhu plans will cater to short-distance travel. However, the railways is testing out Spain’s high-speed, lightweight Talgo train it expects to cover the 1,384- kilometres Delhi-Mumbai stretch in 12 hours against the current 15 hours 42 minutes. Humsafar, a totally 3AC train will make its debut in end-August while Tejas—with Executive Class and Chair Car coaches—that will have 22 features including entertainment screens for all passengers, water level indicators in bio-vaccum toilets, wi-fi and Braille displays is expected to make its debut in December. As things stand, fares on Tejas trains are likely to be 30% higher than on regular trains. Already higher fares have begun to kick in on the Gatimaan Express that covers the 188 kilometres Hazrat Nizamuddin-Agra Cantonment stretch in 100 minutes. Gatimaan charges R755 for a chair car seat (including R181 for catering), which is 47% more than the R515 (R90) that the Bhopal Shatabdi charges for a 117 minute run and more than double the R370 that the Taj Express charges for a 162 minute ride between the two cities. As more such trains are introduced, the demand for faster transport between cities will increase. But, unlike in the past, the Railways could end up being net gainers as revenues rise sharply.
