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| Type | Commercial Circular |
|---|---|
| Topic | concessions |
cent) passengers gave up 100 per cent concession.
Chapter 2 Concession to passengers in Indian Railways
Page 27
Report No. 10 of 2019
Chapter 2 Concessions to passengers in Indian Railways
2.1 Introduction
Ministry of Railways allows concessions to various categories of passengers
travelling on the Indian Railways. There are 53 major types of concessions
provided by IR to the general public (appendix a). These concessions vary for
different categories of persons, such as (i) Senior Citizens (ii) Physically
challenged persons (iii) Patients suffering from cancer, thalassemia, heart, kidney,
tuberculosis and other serious diseases (iv) Recipients of gallantry awards (v)
Shram awardees (vi) Teachers honoured with National awards (vii) War widows
(viii) National Sports awards (ix) Participants in National and State sports
tournaments (x) Students (xi) Youths (xii) Kisans (xiii) Press correspondents (xiv)
Film technicians, etc. Indian Railways also provides concessions to railway
employees towards Privilege passes, Complimentary passes and Privilege Ticket
Orders (PTO). The detailed rules, procedures, extent of concessions, entitlement,
purposes, etc. for grant of concession are contained in IRCA Coaching Tariff
No.26, Part I (Volume II). Indian Railways earned ` 88063.93 crore27 revenue from
189.99 crore reserved passengers during 2015-16 to 2017-18 and allowed
concession of ` 7418.44 crore (8.42 per cent) to 21.75 crore (11.45 per cent)
reserved passengers during the same period.
2.2
Background
In Chapter 1 of the Audit Report No. 9 of 2005 (Railways) regarding Performance
Audit on ‘Passenger Revenue Management in Indian Railways’, Audit had
highlighted that recommendations of Railway Fare and Freight Committee (RFFC)
required early implementation. These recommendations included restricting the
amount of concession to 50 per cent, withdrawing concessions granted to delegates
of various profit earning organisations, charging for children above the age of three
years, charging of 75 per cent fare in respect of children provided with berth and
getting the Department of Parliamentary Affairs to bear the expenditure on account
of concession given to ex-MPs. In the Action Taken Note (June 2015), the Railway
Board stated that the Railways grant concession to passengers in a very limited
number of cases, depending upon the need and merits.
The Niti Aayog Committee of Bibek Debroy and Kishore Desai that reviewed the
impact of Social Service Obligations by Indian Railways, however, concluded
(September 2016) that Indian Railways ends up treating its goods business as a tool
to more than make up for its passenger business losses to manage overall financial
situation.
27 as per annual statistical statement of ministry of railways
Chapter 2 Concession to passengers in Indian Railways
Page 28
Report No. 10 of 2019
In this background, the present audit was focused on assessment of the quantum of
concession borne by the Indian Railways and effectiveness of the internal control
mechanism to check misuse of concessions.
2.3
Audit Objectives
The present audit has been undertaken to -
1.
Assess the impact of the concessions allowed to passengers on Railways
earnings;
2.
Assess whether Railways have taken effective steps to contain the amount
of concessions over the years and adequate internal controls are in place to
check misuse of concessions?
2.4 Audit scope and methodology
The audit scope included review of concessions given to reserved passengers
during 2015-16 to 2017-18. This included review of concessions given to Senior
Citizens, Patients suffering from specified illness, Persons with disabilities,
Students, Sports persons, press correspondents, Privilege Pass/PTO holders etc.
Ministry of Railways stated that Privilege Passes/PTOs are not concessions but
statutory conditions of service. This may be a fact, but in view of their financial
implication and cost
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