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Government Profiteering
  

 

Indian Railways indulges in undue Profiteering. Perhaps it has been going on for quite some time now, without protest from the Public, Press and others. I noted it on 2-5-2008.

Extra comment on 5-6-2008: Commerce Minister, Kamal Nath has written to the Finance Ministry, that Railways earned over 6000 Crores additional income in the first 2 months of financial year 2008-2009, by increasing the freight charges for bulk items and fuelling inflation  - source, Business Standard, 4-6-2008
 
 
 
Railway Reservation / Accommodation shortage  - the facts
   
  Indian Railways is a Government of India organisation

It is not still not equipped to take care of the Summer Rush. The position has not improved in the last 50 years.

Special trains are not run enough - odd timings, poor sanitation and water facilities and such other nuisances have to be tolerated by the travelling public when special / Summer Trains are run

Till 24-5-2008, there is no advertisement in the Newspaper / Times of India, about Summer Special Trains for 2008. Kamal Nath, a principled man against Profiteering[?], has to keep mum against Laloo !

 
 
Government exploits the shortage to earn more - blatant and open Profiteering
   
  Profiteering: If a manufacturer or Government exploits the demand - supply mismatch, charges more / exorbitantly not justifiable in any way by cost increases and provides imaginery and colourful excuses, it is Profiteering. 

Should the Government indulge in Profiteering exploiting demand supply mismatch  ? 

Kamal Nath, the Commerce Minister posed himself an authority on Profiteering on CNBC TV 18 in May 2007. The Finance Minister, Chidambaram, is a know all on many things and of late, in detecting Cartels and excuses for rising Inflation. The PM only speaks the prepared sermons, when permitted 

 

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The Charge - Tatkal Reservation Loot by Indian Railways
  [ based on my experience in booking a Tatkal ticket to Chennai on 3-5-2008 ]
   
  Tatkal Quota: About 33.3% of available accommodation is kept for Tatkal / late urgent reservation. About 288 Sleeper berths are available in Navjivan Express, from Ahmedabad to Chennai, for 8th, 9th and 10th May when I checked around 2100 hours on 2-5-2008

There were 12 Sleeper Bogies on 12-5-2008: Total 12 x 72 = 864 berths; 288 berths is one third of this total capacity and not 20% of available accommodation as put out in www.indianrail.gov.in. They bluff
   
 
Why reserve this high percentage ? 
   
  Accommodation was not available for 8th despite being 3rd in the queue on 3-5-2008. Waitlist ticket with 110 plus number was only available
   
  The Loot: For II Sleeper, which the common public have to use, the additional charge for tatkal is Rs 200 per head. Let us assume that tatkal facility will be used by long distance travellers, having to spend over 24 hours in a train. Nowadays, the average distance covered in 24 hours is about 1500 Kilo Metres on Delhi - Mumbai route. The basic ticket charge for 1500 Kms is Rs 384
   
  Calculate the Loot: If say, 100 seats are sold normally, Railways will collect Rs 38400/-. But 33 % or 33 seats are reserved for tatkal. Railways are earning 30 x 200 = 6000 under the Tatkal Reservation scheme. They can collect Rs 45000/ instead of the normal Rs 38400/. 
   
  The extra collection of Rs 6600 is a cool 17% extra income for Railways without any extra cost or service. Is it not Profiteering ? Does it not affect the common man ?

Details from www.indianrail.gov.in/tatkal.html as on 6-5-2008 at 1755 hours

In those trains and classes where average utilization of Tatkal accommodation during six months period i,e April to September is 80% and above, tatkal charges applicable during peak period will be charged through out the year i.e for both peak and non peak period.

Why is a relevant question ?

Does it not indicate that there is Excess Demand for accommodation ? Should they not introduce more trains / increase the Capacity ? They perpetuate the shortage and charge more

 

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Classes No. of berths to be earmarked where the utilization of Tatkal accommodation is more than 80%
2 AC 10 Berths Per Coach
3 AC 16 Berths Per Coach
AC Chair Car 16 Seats  Per Coach
SL 20% of the available accommodation

....The booking Tatkal scheme will be done only from originating to terminating point of the train with boarding facility from intermediate station
 
 
Further Additional Loot
   
  The Public have to pay the fare from the Starting station of the Train to the last station of the Train, even if one does not travel the whole distance
   
 
Full Payment even for part Journey ! what rationale is that by the Government ? 
   
  To illustrate, if a person wants to travel from Wardha to Chennai, distance of 1020 as per the Railway Guide, he has to pay for 1899 Kilo Metres ! And that is daylight Robbery
   
  Open Excess Pricing, operating without any question from any source ? Do we have to pay more for less ? Does a small Tea Vendor charge for 2 Teas, even if you take only One Cup. The Courts and the Government will quote the scriptures. And here we have a Government outfit acting cheap and shameless
   
  We are marching towards a New India - Govt TV ads in May 2008 ! The bluff continues since Nehru

P.S: If you agree with my observation / views, you can take up the matter with Newspapers, MPs and others who are awake. I am a bit tired and bored about writing to them based on my past experience
 
 

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