The reconstitution of the Flexi fare scheme

Why in the discussion? 
Recently, Indian Railways decided to review the recommendation of the review committee, the report of the Comptroller and Auditor and the flexi fare scheme based on the report of the passengers.



key points

  • Indian Railways launched the Flexi Fair Scheme from September 9, 2016. The scheme collected high revenues, although initially the number of passengers declined, but later it was seen fast.
  • An 8-member committee was formed with the objective of rationalizing the rent by the Railways so that the flexi scheme could be reviewed and it could be made more conducive for the passengers.
  • In the last 15 trains, the average monthly number of passengers was less than 50 percent, the flexi fair has been abolished.
  • In the last three years, in less than three months, the 32 trains that have an average monthly number of travelers in 50-75 percent of the Flexi Fair has been abolished.
  • The current range of maximum rent in all categories has been reduced from 1.4 times the original rental to 1.4 times.
  • Those trains, which have a low number of passengers with 2 AC, 3 AC, CC etc., and our trains, in which the number of passengers in a particular category is less than 60 percent (4 days before the train was scheduled to leave at the scheduled time), Flexi Fair With a final discount of 20 percent on all trains, the final fares will be given.
  • Railways have also made their freight rate rational to generate additional revenue. As a result, the increase in freight traffic for major commodities such as coal, iron and steel, iron ore and steel plants will increase by 8.75%.
  • Transportation charges for containers have increased by 5% and freight traffic of other small goods has increased by 8.75%. With this step, the Railways will get additional revenue of `3,344 crore.

What is the Flexi Fair scheme?

  • Flexi fare is an increasing cost system introduced by Railways in September 2016 for premium trains like Rajdhani, Shatabdi and Farts.
  • Initially, the usual fare for the first 10 percent of the seats is applicable, after 10% of the berth booking, fares are increased by 10 percent. On the basis of demand, it increases rent up to 50 percent.
  • The second AC and the Chairworker have a maximum increase of 50%. At the same time, for the third AC, this limit is 40 percent more than the original rental.

Why in the discussion? 
Recently, the Minister of State for Tourism (Independent Charge), Mr. K.J. Alfons attended the 109th session of the United Nations World Tourism Organization (UNWTO) organized in Manama (Bahrain). The three-day session of UNWTO's Executive Council began on October 30, 2018, in which some issues related to the development of the global tourism sector will be discussed.

Important point

  • In the beginning of the meeting of the Executive Council, India's Tourism Minister K.J. Alfons presided over the program and budget committee of the UNWTO Conference.
  • In this conference, the Tourism Minister of India, underlined the role of tourism for socio-economic development. He said that with the help of tourism, the creation of jobs, enterprise and environment development and acquisition of foreign exchange will be possible.
  • As the Chairman of the Committee, he told that for the first time, the budget of UNWTO has come to 'surplus' and most of the dues have been squared.
  • Apart from this, India's Tourism Minister, Alphons, also met Secretary General of UNWTO Mr. Junk Pololakasvili and discussed the role of UNWTO in establishing tourism development and public-private partnership.
  • India will preside over the UNWTO Executive Council Program and Budget Committee by 2021.

What is UNWTO?

  • World Tourism Organization is a specialized agency of the UN, which is a leading international organization in the field of tourism. It is responsible for promoting tourism, characteristic of responsible, sustainable and public access.
  • UNWTO is headquartered in Madrid (Spain).

Work

  • It acts as a global platform for practical sources to know about tourist policy related issues and tourism.
  • To achieve its objectives, it gives special attention to the interests of developing countries in tourism sector.
  • UNWTO plays a catalyst for technological transfer and global collaboration in order to promote public-private partnership and encourage implementation of global code of tourism ethics.

Executive council

  • The Executive Council of UNWTO, represents the administrative body of the organization. Its work is to adopt all the necessary measures in consultation with the Secretary-General for implementation of the decisions and recommendations taken by the House.
  • The Executive Council's conference is held at least twice a year.
  • There are 35 full members in the Council, which are elected by the House in such a manner that the situation of fair and equal geographical distribution can be achieved.

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