The Hindu Business Line : AC train fares may see further cuts in July

"We have already decided to reduce the AC-I and AC-II fares this budget. This was done for obvious reasons — as our AC-I and AC-II segments were under-utilised. There is more good news in store," Mr J.P. Batra said speaking at a CII seminar here on Friday.

Later on, when the further reductions in fares are due, Mr Batra said, "These would be a part of off season discounts." Railways' slack season ranges from January 15 to March 31 and from July 15 to September 15.

Since the present budget announcements regarding tariffs are slated to come into force from April 1, the next slot of reductions may be offered from July 15. On the proposed low-cost AC train, Garib Rath, Mr Batra said that it is being redesigned to have more seating capacity so that the services could be offered at about 25 per cent lower than the AC-III tier fares.

On having clean stations and trains in place by outsourcing management to private players, Mr Batra said, "The private players would be allowed to put their advertisements in the waiting halls." He also said that Railways would allow advertisers to buy space "on wagons of entire divisions", which can serve as a parallel revenue stream. However, Railways would not allow advertisements on "important trains like Rajdhanis, Shatabdis and other mail and express trains."

Meanwhile, Railways also said that it is in talks with leading hotel chains, including Indian Hotels and Welcomgroup chain to set up over 40 budget hotels on its property.

Dr P.K. Goel, Executive Director (Tourism), Indian Railways said, "We have had a very good response to this (budget hotel project) and our tenders should be out soon."

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AC train fares may see further cuts in July