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Indian Railways has earned a substantial Rs 6112 crore from ticket cancellations over the past four years. This information was revealed by the Ministry of Railways in response to an RTI plea filed by Kunal Shukla, a social activist from Raipur. Despite the large sum, railway officials have noted that this revenue is considered minimal and does not form a significant part of the national transporter's primary earnings.
Revenue from Cancellations Each Year
The year-wise breakdown of the revenue from ticket cancellations is as follows:
- 2019-20: Rs 1724.44 crore
- 2020-21: Rs 710.54 crore
- 2021-22: Rs 1569 crore
- 2022-23: Rs 2109.74 crore (provisional)
These figures highlight the significant amount collected through ticket cancellations over the four-year period.
Reservation and Cancellation Process
Passengers can book railway tickets either at railway counters or online through e-ticketing platforms. When tickets are cancelled, clerical charges are applied, which contribute to the cancellation revenue. Vikas Kashyap, the Chief Public Relations Officer of the South East Central Railways (SECR) headquartered in Bilaspur, clarified that this revenue from cancellations is mainly to cover clerical charges and is not considered profit for the Railways.
Distribution of Cancellation Revenue
Kashyap explained that the entire amount collected from ticket cancellations is directed to the Indian Railways Catering and Tourism Corporation (IRCTC), an independent public sector undertaking. Considering that around 70-80 lakh tickets are generated daily across India, the cancellation revenue is viewed as minimal and not a significant contributor to the Railways' earnings.
Increase in Passenger Fares
It is also notable that passenger fares have increased by 85 percent over the last ten years. This fare hike, highlighted by Shukla, has been a significant factor in the overall revenue strategy of Indian Railways.
Clarification on Clerical Charges
Kashyap emphasized that the cancellation charges are essentially clerical fees and not profit margins. He stated, "The amount received from the cancellation is the minimal clerical charges taken against the cancellation of tickets and does not add to Railways as its earning." This explanation underscores that while the cancellation revenue appears large, it does not directly enhance the profit margins of Indian Railways.
The Rs 6112 crore earned from ticket cancellations between 2019 and 2023 reflects the extensive administrative processes within the Indian Railways network. Despite the substantial figure, the revenue is seen as covering basic clerical charges and is allocated to the IRCTC rather than contributing directly to Indian Railways' earnings. The significant increase in passenger fares over the past decade further demonstrates the Railways' broader financial strategy to manage and sustain its vast operations effectively.
