Indian Railways Calls Train Fare Calculation a “Trade Secret” — What It Means for Passengers
Indian Railways has recently stated that the formula used to calculate train ticket fares is a “trade secret” and cannot be shared with the public. This clarification came after a request was filed under the Right to Information (RTI) Act asking for details about how passenger fares are fixed.
The issue has raised questions about transparency, especially because Indian Railways is a public service used by millions of people every day.
What Information Was Asked Under RTI?
An RTI applicant had requested detailed information on:
- How train ticket fares are calculated
- What factors decide the base fare
- Whether demand, season, class of travel, or special quotas like Tatkal affect pricing
- How fares differ between sleeper, AC, and other classes
The request also asked for specific explanations related to certain trains and routes.
Why Indian Railways Refused to Share the Formula
Indian Railways responded that its fare-fixation method is part of its commercial and operational strategy. According to officials, the detailed calculation process falls under trade secrets and intellectual property, which are protected from disclosure under the RTI Act.
The Railways explained that:
- Ticket prices depend on the class of travel and facilities provided
- Higher classes charge more due to added comfort and services
- The internal pricing structure and calculations are confidential
Because of this, the Railways said it cannot disclose the exact formula used to decide fares.
Decision by the Central Information Commission (CIC)
The matter was reviewed by the Central Information Commission. After examining the case, the CIC agreed with the Indian Railways’ position and dismissed the appeal.
The commission observed that:
- Indian Railways had already shared all information that is legally allowed
- Public authorities are not required to create new explanations or calculations
- There was no violation of RTI rules in withholding confidential commercial data
As a result, no further directions were given to the Railways.
What This Means for Train Passengers
For passengers, this means:
- The exact formula used to calculate train fares will not be made public
- Only general fare principles, such as class-based pricing, will remain available
- Fare revisions will continue to be decided internally by Indian Railways
While passengers may notice changes in ticket prices, the detailed logic behind those changes will stay confidential.
Transparency vs Commercial Confidentiality
This case highlights the balance between public transparency and commercial confidentiality. While Indian Railways is a public service, it also operates on a large commercial scale. Authorities believe that revealing detailed pricing methods could affect operational efficiency and competition.
Final Thoughts
Indian Railways’ decision to classify its fare-fixation formula as a trade secret has closed the door on full public disclosure. Although passengers may want greater transparency, the current legal framework allows the Railways to protect its internal pricing strategy.
For now, travelers will continue to see fares based on class, distance, and service level — but the exact calculation behind the ticket price will remain behind the scenes.
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