IRCTC having a good day

Finally! That’s how we feel when we read that the Indian Railways has hiked fares. This was long overdue but political pressures never allowed this fare hike to come in.

Leaving the suburban train fares untouched, effective today, ordinary non-AC, non-suburban fares were increased by 1 paise per km of journey. It also announced a two paise/km hike in fares of mail/express non-AC trains and four paise/km hike in the fares of AC classes.

The fare hike is also applicable to premium trains such as Shatabdi, Rajdhani and Duronto.

There will be no change in the reservation fee and superfast charge and the hike in fares will not be applicable to tickets already booked.

The railways in a statement said the revenue generated by the marginal increase in fare will be used for the modernisation of the network.

Reacting to this news, IRCTC initially reacted very positively. From yesterday’s close of Rs.934, the stock opened Rs.10 higher at Rs.943.45, went on to an intraday high at Rs.951.85 but from there, profit booking has now kept the stock just about in the green at Rs.939 levels.