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Govt Saves Rs 40 Crore As 9 Lakh Senior Citizens Give Up Railway Subsidy

DIVYIA ASTHANA | 0
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| December 3 , 2017 , 12:44 IST

The Indian Railways provides subsidies for persons above the age of 60 years as a part of the senior citizens' category, incurring a total loss of Rs 1,300 crore to the government due to the subsidy. This year, the government saved Rs 40 crore as 9 lakh senior citizens gave up their subsidies in a 3 month period.

Although the Indian Railways had launched a scheme for senior citizens to either take the entire subsidy or give it up entirely last year, not many takers gave up the subsidy. This year, a new option was provided according to which senior citizens can give up only 50 percent of their subsidy, which proved to be a hit with the public. 

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In the period between July 22 and October 22 this year, 2.16 lakh men and 2.67 lakh women gave up their full subsidy, while 2.51 lakh men and 2.05 lakh women gave up 50 percent of their subsidy, resulting in a total of 9.39 lakh senior citizens giving up their subsidy in 3 months.

During the same period last year, only 2.35 lakh men and 2.33 lakh women gave up their subsidies, resulting in a total of only 4.68 lakh senior citizens giving up subsidies.

"The figures show that the number of people letting forgoing the subsidy has doubled in one year. It is great news for Railways as we are looking to reduce our losses incurred through subsidies," a senior official of the ministry said.

Currently, the Indian Railways recovers only 57 percent of its expenses from the sale of tickets and bears the remaining 43 percent of the costs itself.