With an aim to improving occupancy, railways is set to introduce up to 25 per cent discounts in fares for trains like the Shatabdi Express, Gatiman Express and Tejas as well as double-decker and Intercity trains, which have low occupancy rates.
"Ministry of Railways have decided to delegate powers to zonal railways to introduce discounted fare scheme in trains with sitting accommodation of AC chair car and executive class," according to a circular put out by the ministry on Tuesday.
The discount will be given on the base fare of all trains with AC chair car and executive chair car accommodation and GST, reservation fee, superfast tariff etc as applicable will be levied separately, it said.
Trains with monthly occupancy of less than 50 per cent in the previous year are eligible for the discount and competitive fare will be the criterion while deciding the quantum of discount.
The circular by the Railways Ministry is addressed to the Principal chief commercial managers of all zonal railways to introduced the discounted fares.
The discount in the fare can be provided for the first leg of the journey and, or the last leg of the journey and/or intermediate sections and/or end to end the journey.
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Catering shall be optional for trains with discounted fares.
"The zonal railways have been tasked to review the occupancy of all applicable trains and examine by September 30 the implementation of the discounted scheme. If found feasible, the same shall be implemented with effect applicable advance reservation period for the train on an experimental basis for an initial period of six months," it said.
After four months of implementing the scheme, the zones have been directed to file a report based on the comparative occupancy and earnings, in order to take a decision for further extension fo the scheme beyond six months.
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