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

Railway Minister did not read this page: Yet, the action was taken. Page contents are right

Monopolistic Loot: The undue Profiteering by the Railway was accepted by the Railway Minister in the Parliament / Lok Sabha on 3rd July, 2009

The changes made are: Tatkal Quota has been decreased. Passenger will pay from the place of boarding the Train and not from the Originating Station of the Train - payment for distance not travelled. The tatkal Charges have been reduced to Rs 100 from Rs 250.

 

Tragedy:  Nobody questioned the Railway. And we have the Press, self styled Watch Dogs !

 

Dec 2009: Railway Ministry has confirmed that with the revised, lower Tatkal rates, the overall income on account of tatkal reservations, have gone up.

For more details, refer to Railway Ministry / Minister

Left over basic points:

 

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.

     
 
     

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 ?
	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

accommodation to be earmarked under Tatkal scheme should be enhanced as under

 

....The booking Tatkal scheme will be done only from originating to terminating point of the train with boarding facility from intermediate station - this has been changed now - July 2009
 
 

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

 

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Main / original content:  2001: Last minor modifications: June 12, 2010:     Personal website of R. Ranganathan M.Sc., [ MBA - IIMA]