Implement dynamic pricing for AC classes, review fares to align with cost: House panel to Railways

While reiterating its earlier recommendation to increase passenger revenues by reviewing AC class fares, the parliamentary standing committee on Railways has said that the government should implement a dynamic pricing model for AC classes and premium trains.

- GNS News Agency

It must also ensure affordability for low-income passengers to balance “social obligations”, the committee said. It added that a comprehensive fare review should be undertaken from time-to-time to align AC class fares with costs and ensure gradual, affordable adjustments for non-AC classes.

“The committee, therefore, recommends that Indian Railways should adopt a comprehensive, multi-pronged strategy to enhance net revenue while ensuring affordability for low-income passengers. This includes implementing dynamic pricing models for AC classes and premium trains, regularly reviewing flexi-fare schemes based on demand, and expanding non-fare revenue through initiatives like e-auction policies, advertising, and commercial utilisation of railway assets,” said the parliamentary committee in its report on action taken by Government on ‘Demands for Grants (2024-25) of the Ministry of Railways’, which was presented in the Lok Sabha on March 10, 2025. The committee added: “The Committee also feels that in order to balance social obligations, Indian Railways should continue targeted subsidies for suburban and non-AC travel. However, operational efficiency must be improved through accelerated electrification and energy efficient technologies.”