The Indian Railway Catering and Tourism Corporation (IRCTC) came under fire after a Right to Information (RTI) query reported that it had stopped paying passengers for delays in private trains. The material made public by the news agency PTI raises questions about the company's openness and customer-centric approach and reveals a major change in IRCTC's policies.
What is IRCTC?
IRCTC, which the Ministry of Railways set up, oversees ticketing, catering, and tourist and private train operations in India. Tejas Express and other private trains were launched to improve passenger experience and encourage private sector participation in rail transport.
Compensation Scheme: A Marketing Initiative of IRCTC
To attract customers to private trains, the compensation scheme was first implemented as a marketing strategy. For delays between 60 and 120 minutes, passengers received ₹100 as compensation; for delays of more than 120 minutes, they received ₹250. Passengers were entitled to free food and drinks during the delay and a full refund of their ticket price in case of train cancellation.
Discontinuation of Compensation Scheme
The RTI reply states that on February 15, 2024, IRCTC ended the compensation scheme. Despite repeated queries, IRCTC has not disclosed the rationale behind this move, citing privacy rules. Discussions on IRCTC's dedication to passenger care have started due to this lack of openness.
Compensation Statistics Over Five Years
RTI disclosures on IRCTC’s private train delay compensation scheme provide useful information about the financial impact over five years. Since its launch in October 2019, IRCTC has paid compensation of ₹26 lakh to passengers. The annual statement shows that ₹1.78 lakh was paid in 2019-20, and no compensation was paid in 2020-21 due to service disruptions caused by the pandemic. The payouts started at ₹96,000 in 2021-2022, increased to ₹7.74 lakh in 2022-2023 and peaked at ₹15.65 lakh in 2023-2024. The final year of the program saw a significant increase, reflecting its growing popularity and importance for passengers ahead of its expiry on February 15, 2024.
Tejas Express: The Flagship Private Train
IRCTC's Tejas Express trains, which offer first-class private train services with modern amenities, are a significant milestone in India's railway modernization initiatives. These showpiece trains are the Ahmedabad to Mumbai Tejas Express, which began service on January 17, 2020, and the New Delhi to Lucknow Tejas Express, which was introduced on October 4, 2019. Modern décor, onboard dining, and punctuality are the hallmarks of these trains, which are designed to offer an exceptional travel experience. First, they differentiated themselves from conventional train services by offering a compensation scheme for delays, which established them as a customer-centric option. However, the scheme's eventual expiry in February 2024 may make these services less attractive to users in the future.
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