Indian Railways Increases Last-Minute Cancellation Fees

The CSR Journal Magazine

Passengers modifying travel plans at short notice will face increased penalties under new rules established by the Indian Railways. Effective from April 1 to 15, cancellations made less than eight hours prior to scheduled train departure will not receive any refund. For cancellations occurring between eight to 24 hours before departure, a 50% refund will be granted, while cancellations made between 24 to 72 hours prior will incur a deduction of 25%.

Changes in Existing Refund Policies

Previously, the conditions for obtaining a refund were more lenient. Under existing regulations, passengers are not compensated for cancellations within four hours of departure. A 50% refund was available for cancellations made between four to twelve hours, and a 25% deduction applied for cancellations made twelve to forty-eight hours before the departure time.

Reason Behind Tighter Regulations

Railway Minister Ashwini Vaishnaw indicated that these stricter refund measures were introduced to combat ticket touting, a practice where individuals profit from selling train tickets on the black market. The adjustments aim to reduce misuse of the last-minute cancellation policy.

Online Ticket Management Features

In addition to the revised cancellation policy, the minister announced that passengers holding online tickets will now have more flexibility. They will be allowed to change their boarding station up to 30 minutes prior to the train’s scheduled departure. This aspect of the reform is intended to offer greater convenience for travelers.

Contracting Norms Under Review

The minister also introduced reforms related to the contracting protocols for railway projects. Moving forward, the Railways will evaluate the capability of contractors bidding for projects exceeding Rs 10 crore. The newly established guidelines stipulate that contractors must undertake at least 60% of the work under their direct supervision. Furthermore, subcontracting will be permitted for up to 40% of the designated contractual work.

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