Hence, CAG is of the view that when Indian Railways was unable to fully utilise 30% of seats/berths under Tatkal scheme with enhanced fare, the decision to allot 90% seats under flexi-fare with higher fare up to 40-50% was вЂњnot judiciousвЂќ.Дў. Only in the sleeper class of Duronto did the Tatkal tickets get booked. In such a case berths remained vacant by as much as 5-23% in AC 2, AC 3 and CC classes of all the Rajdhani, Duronto and Shatabdi trains, observed CAG.

For example, under Tatkal scheme 30% of the seats/berths were allotted at enhanced fare of 30% more than the normal fare. According to the CAG before introducing the flexi-fare system, Indian Railways experimented with dynamic/enhanced fare. Financial Express Online takes a look at some data points that CAG has showcased to point to the problems of the flexi-fare scheme:ДЎ. For this report, CAG has examined data between 9 September 2015 and 31 July 2016, that is the pre-flexi scheme period and between 9 September 2016 to 31 July 2017, that is the post-flexi scheme period. This is with a cap of 140% for AC-3 tier class and 150% for all classes except AC First and Executive Chair Car. The fare increases by 10% as every 10% of the berths/seats get sold. Introduced in September 2016, the flexi-fare scheme charges passengers higher fare as the berths fill up. However, Indian Railways carried 6.75 lakh less passengers in its premier trains post introduction of the scheme, despite a 3% increase in berth potential. There has been an increase of Rs 552 crore in passenger earnings after flexi-fare was introduced. While criticising the less than judicious introduction of the flexi-fare scheme, CAG admits that the passenger earnings have increased.

In its latest report, the CAG has observed a worrying trend for Indian Railways вЂ“ passengers are choosing air travel over trains on routes where fares in Rajdhanis and Durontos are higher due to the flexi-fare scheme! Not only that, on several routes passengers are opting for the longer duration but cheaper Mail/Express trains instead of paying higher train fares for Rajdhanis, Durontos and Shatabdis! CAG has also pointed to the fact that in the past four years there is a declining trend in passengers carried by Indian Railways. Indian RailwaysвЂ™ flexi-fare scheme for its premium Rajdhani, Shatabdi and Duronto Express trains has been criticised by the Comptroller and Auditor General (CAG) of India.

Flexi 12 intro