Govt may replace loss-making AC-II coaches with AC-III in Rajdhani, Duronto

Indian Railways is likely to replace loss-making AC-II-tier coaches in premium trains like Rajdhanis and Durontos with AC-III tier soon. This will be initially applicable to those trains where the number of AC-II passengers is low and at least 250 such coaches across the country may be replaced.   

"Railways is suffering a huge loss on AC-II, while AC III is always on demand. Hence we are thinking about the conversion,” said an official close to the development. Interestingly, AC III coaches are the money spinners for railways in AC segment as it carries around 85 million passengers annually, compared to around 55 million in all other AC segments together, — AC-I, AC II and AC chair car.

According to a recent report by the Comptroller and Auditor General, only the AC 3-tier is making operational profits in the segment. This comes at a time when the government is planning to bring changes into the flexi-fare system, making it more consumers friendly. The system was facing the wrath citing that it was leading to a loss in revenue on upper-class traffic to the aviation sector.

As per the revised system, the first 50 per cent berths of these trains will be sold at 15 per cent higher price than the base price and the slab will change with every 10 per cent of the berth sold thereafter. Similarly, the government is also mulling options to bring in special discounts under the scheme in not so busy routes.

Officials are of the opinion that the system should not be withdrawn as the national transporter had posted a 0.82 per cent increase in the number of passengers during the last financial year and got additional revenue of around Rs 8.6 billion on flexi fare. Despite facing the heat on the system of flexi fare in premium trains, figures show that the number of tickets booked through passenger reservation system (PRS) has increased by 6.5 per cent to 556 million compared to last year.