After the success of flexi-fare system, the Indian Railways is planning to start a new route-specific tariff model to help increase the revenue, Business Standard reported.
“A new tariff model is in the initial stages of discussion. This will be vital for the railways as we are bearing huge losses on passenger side," a senior government official told the newspaper.
With elections round the corner, the plan is unlikely to see the light of day till the next government takes charge, said the report.
The new plan was triggered by a study conducted by the National Institute of Public and Finance Policy (NIPFP) on the social sector subsidies borne by the Indian Railways, the report said.
The railways spends around Rs 35,000-40,000 crore annual in the form of social sector subsides, as per the study.