Can Prabhu’s Surge Pricing Save the Indian Railways?

Can Suresh Prabhu resist political pressure and stick to the ‘experimental’ surge pricing for premium trains?

Union Railway Minister Suresh Prabhu is tasked with turning around the Indian Railways. (Photo: PTI)

The Indian Railways passenger business is running into losses of upto Rs 33,000 crore. To generate revenue, Suresh Prabhu has introduced surge pricing or flexi pricing for premium trains – Shatabdi, Duranto and Rajdhani. Passengers will not pay 10 percent more on the base price for every 10 percent of the seats sold. Political opposition prompted the Railway Minister to clarify that the surge pricing, effective Friday, had been introduced on an experimental basis.