HootSoot official

Government is now planning to urge people to leave their subsidy on ‘train fare’


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Updated on February 11th, 2018


After asking the people to voluntarily give up subsidy on gas cylinders, the central government now plans to withdraw subsidy for railway tickets also. Indian Railways will launch this scheme next month. There will be two slabs in give up subsidy, which will be 50% and 100% of the subsidized amount.

The railways will also increase awareness about the subsidy and inform passengers about the annual loss of 30,000 crores that is borne due to subsidies. Currently, the railways bear 43% of the cost of the fare.

Give-it-up option will be there both in online ticket bookings and at counters. Railways have already introduced a dynamic pricing system in luxury super fast trains like Rajdhani and Shatabdi to cover up losses.

As per Times of India, after giving up subsidy, the cost of a 3rd AC ticket, from Delhi to Mumbai on a superfast train like Golden Temple Express, will be 2,750 instead of 1,570. A substantial hike in the cost of all railway tickets is expected.

Subsidy in the suburban trains like Mumbai local is much higher. They are subsidized by whopping 64%. Railways is undergoing a massive overhaul and financial restructuring to cut losses and mop up more revenue from wherever possible including selling of advertising spots, freight, catering and passenger fare.


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