These are the only two classes of train tickets that earn a profit for Indian Railways

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Published: December 3, 2019 3:45:30 PM

In the financial year 2016-17, AC 3-Tier class saw an increase of 12.43 per cent in profits with Rs 1,040.52 crore. On the other hand, the AC Chair Car saw an increase of 8.13 per cent in profits with an amount of Rs 117.83 crore, during 2016-17.

railwaysIn the last five years, the subsidy provided to the ordinary class as well as suburban services continuously increased with subsidy on the ordinary class being the maximum.

Believe it or not but all classes of train services across the Indian Railways network have incurred losses during the financial year 2016-17. However, only two classes – AC 3 Tier and AC Chair Car recovered their operational cost and made a profit, according to a report by the Comptroller and Auditor General (CAG). In the financial year 2016-17, AC 3-Tier class saw an increase of 12.43 per cent in profits with Rs 1,040.52 crore. On the other hand, the AC Chair Car saw an increase of 8.13 per cent in profits with an amount of Rs 117.83 crore, during 2016-17.

As per the latest CAG report, AC 3 Tier class of railway travel earned a profit Rs 494.99 crore in 2012-13, Rs 410.67 crore in 2013-14, Rs 881.52 crore in 2014-15, Rs 898.06 crore in 2015-16. Indian Railways’ AC Chair Car earned a profit of Rs 38.12 crore in 2012-13, Rs 148.47 crore in 2013-14, Rs 142.26 crore in 2014-15, Rs 5.58 crore in 2015-16.

According to CAG, in the last five years, the subsidy provided to the ordinary class as well as suburban services continuously increased with subsidy on the ordinary class being the maximum. The loss in various classes of passenger services in terms of percentage ranged between 13.60 per cent (AC 2) and 80.27 per cent (First Class). The loss on AC First class was 17.68 per cent, First class was 80.27 per cent, AC 2 Tier was 13.60 per cent, Sleeper class was 40.80 per cent, Second class was 49.17 per cent, Ordinary class was 70.19 per cent and on EMU suburban services, the loss was 64.74 per cent.

Operational losses of various Classes of Passenger Services

According to CAG, one of the contributing factors for non-recovering full cost from all these classes of train services is free and concessional fare train tickets to various beneficiaries in good numbers. During the last three years, various types of concessions were availed by 11.45 per cent of the reserved passengers travelling by Indian Railways, the auditor stated in its report.

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