It would be over-simplistic to cite the classic argument that “good economics can be bad politics” in relation to the Railways’ decision to introduce “flexi-pricing” on select trains. Opt for any euphemism Suresh Prabhu and his officials may favour, a price-hike remains a price-hike. In a country where passenger fares have ever been politically sensitive, the additional Rs 500 crore expected to be generated this financial year (would Rs 1000 crore over a full fiscal be an accurate ball-park estimate?) has to be weighed against the “price” the government would have to pay — particularly with elections to state assemblies in the offing. The image of the “suit-boot sarkar” would surely be revived by the principal opposition parties, and echoed by just about every other group that does not endorse the NDA. By describing the move as “experimental” Rail Bhavan (the minister has been uncharacteristically quiet) appears to be hedging its bets, leaving open an escape route. That adds weight to the suspicion that it is itself not terribly convinced of the economic imperatives for the move, merely floating a trial balloon. And that fuels the apprehension in political circles that surge-fare test on Rajdhani, Shatabdi and Durantos would be progressively extended to other trains.

That the Railway Budget has been scrapped could mean fewer opportunities for Parliament to scrutinise the move: the government would hope that with the winter session still some months away the “noise” would have died down. There can be no denying the need for a more realistic and commercial fare structure, politics has long played havoc with Railway finances, yet what could translate into a 35-50 per cent increase will not be easily acceptable. What will not “sell” is the contention that dynamic-fares will apply only to “creamy layer” trains — many more wish to use them but even earlier found themselves priced out.

The reservation-system is not so foolproof as to prevent the first 10 per cent of the seats/berths being cornered by agents — who would then sell them at a premium. There is inadequate transparency in the system to convince, for despite the Prime Minister&’s “crusade” corruption remains rampant. There would also appear to have been some sleight of hand in the manner in which the system was hurriedly introduced. What takes the cake is the contention that flexi-fares already obtain on airlines — there are now enough carriers to give the traveler a degree of choice: what is the competition on the Railways — a passenger slow-coach or a Duranto? And if finances were so critical why the obsession with bullet trains? Maybe Prabhu and Modi would have done better to raise fares across the board by three-five per cent. This “token” socialism is self-defeating.