August 2024
In Mumbai's sweltering heat and humidity, air conditioning in trains is not just a luxury—it's a necessity. Research consistently highlights the negative health impacts of excessive heat on the human body and the productivity loss it causes. In Fact there are EU laws that prevent the transport of animals in the conditions many in Mumbai travel with everyday. Yet, many railway commuter associations hesitate to fully endorse a complete transition to AC locals. Instead, they negotiate for compromises like semi-AC trains or additional AC services without replacing existing non-AC ones. The main sticking point is the prohibitive cost. AC train fares are currently up to seven times higher than regular fares. Rather than opposing AC trains outright, these associations should focus on advocating for fairer pricing to make this essential service affordable.
To the keen eye, it appears that AC trains have been introduced as a Trojan horse to broadly increase farebox revenue and offset the operational losses associated with running the much cheaper non-AC services. Given the political and economic challenges in raising fares for the extremely overcrowded non-AC trains—exemplified by the phrase often heard from passengers, 'first provide good services, then raise ticket prices'—the introduction of AC locals provided the railways with an opportunity to finally increase the fares and charge passengers for the relative comfort they offer. While this is affordable for some, it is not a solution for the majority. If this were limited to a few new AC services as an add-on, it would have been fine, but the government's intention to fully transition all trains to AC without lowering fares has raised concerns. If every train is replaced with an AC one that costs seven times more to board, a significant portion of the population will find these fares unaffordable.
But simultaneously local train fares have remained unchanged for nearly a decade, with the last major fare hike planned for 2014 but later rolled back due to populist pressures. While operational costs have continued to rise, fares have not kept pace. Understandably, the railways seek to reduce losses by increasing prices. However, the significantly higher fares for AC trains have created a stark divide between those who can afford the service and those who cannot. The replacement of non-AC locals with these more expensive alternatives has left many commuters, particularly those from areas like Badlapur, without affordable train options during certain time slots, leading to protests. This division among passengers is counterproductive, especially when considering that even basic metro systems across India and around the world are fully air-conditioned.
The railways current pricing strategy is the core issue hindering the full transition to AC trains. For example, a one-month pass from Kalyan to CST costs ₹315 for regular trains, but the AC pass is priced at ₹2,135—almost seven times higher. This dramatic price increase has understandably sparked public outcry. Expecting commuters, accustomed to affordable fares for decades, to suddenly pay seven times more is not only economically unfeasible for many but also a psychological shock. The opposition has also pounced on the opportunity presented by this extreme pricing, lending support to the concerned commuters by threatening protests and effectively halting the replacement of non-AC trains with AC ones. A more thoughtful approach is needed—one that aligns public interest with business pragmatism.
The first step towards fully transitioning to air-conditioned local trains could be the introduction of a new premium service called "Deluxe Local." This service would offer enhanced AC trains with features such as cushioned seats, onboard WiFi, assured location tracking, prompt in-train PA announcements, an ad-free journey, and more. To minimize ticketless travel, two ticket checkers could be permanently stationed on each train. These Deluxe Local trains would run every 30 minutes, similar to current AC train schedules.
The primary reason for introducing this service early is to shift existing AC passengers to the new Deluxe service, offering them the same exclusivity and comfort they are accustomed to. The season ticket fare could remain similar to the current AC local fares, approximately seven times the general train fare, while the pricing for individual journeys could be dynamic, akin to airline ticket pricing. Charging higher fares during peak hours would help maintain lower crowd levels, making the higher cost justifiable for those seeking comfort. The revenue generated from this premium service could help the railways offset operational losses.
Once the few existing AC services are fully replaced with Deluxe ones, the full fledged rollout of AC trains could start by lowering the fares of standard AC locals to match those of general trains. This parity can be maintained until all Non-AC trains are replaced with AC trains. This approach is similar to the current model, where a mix of non-AC train and AC trains is used to cater the affordable and premium segments of the passengers respectively. In the future, this could evolve into a system where regular AC trains serve the more affordable segment, while Deluxe AC trains cater to those willing to pay extra for additional comfort, as Non-AC trains are gradually phased out.
Introducing deluxe services does not mean that prices of the now lowered general AC local remain equivalent to existing Non-AC and unchanged forever. That would be poor economics. To keep the gap between operational costs and income from increasing and maintain it at an acceptable level, it is important to revise fares periodically. Governments often delay such adjustments for populist reasons, but in the long run, once losses begin to mount, they find it difficult to raise prices. When a government tries to bridge this widening gap by suddenly doubling fares after a long period of stagnant fares, citizens often protest. The value of ₹300 in 2014 is now close to ₹500 due to inflation eroding its purchasing power. Thus, the cost of a Kalyan-CST pass has effectively decreased over the past decade in the absence of fare revisions.
It's natural for any fare increase to face resistance, but a gradual approach can help make the transition smoother. One solution-as I mentioned earlier, is to start by keeping AC fares the same as non-AC fares for a few years while gradually adding more AC trains to the city's transportation system. After this transition period is completed, fares could be increased gradually, by a small percentage each year, until they reach a level that’s affordable based on a certain percentage of the median household income in the metropolitain area. This target could be determined by field experts using data from studies like the MMRDA’s Comprehensive Transportation Study or the upcoming census. Once this target price is reached, future fare increases could be simply tied to inflation, avoiding the need for sudden, arbitrary hikes. If this plan is clearly communicated in advance, it could help set public expectations and reduce the risk of protests. Balancing affordability with financial sustainablity is key to the long-term success of the full transition to AC trains.
The introduction of AC trains in Mumbai should be seen as an essential advancement in the city’s public transportation system, rather than a divisive luxury. By addressing the issue of high fares and adopting a thoughtful, phased rollout plan—potentially including ideas like a deluxe train service—the railways can create a more pragmatically designed transportation network. This approach would meet the needs of all commuters while ensuring financial sustainability. The emphasis should shift from opposing AC trains to ensuring that they are accessible, affordable, and beneficial for everyone in the city.
How the transition timeline could look like