While 10 per cent of the seats will be sold in the normal fare in the beginning, it will go on increasing by 10 per cent with every 10 per cent of berths sold with a ceiling of 50 per cent.

Modelled on the dynamic fare system in vogue in then aviation sector, the flexi fare system will be introduced on experimental basis in II AC, III AC, Chair Car in the three trains besides Sleeper class in Duronto trains. First Ac and Executive Class have been kept out of the new system of the already prevailing high tariffs.

The base fare for the three premium trains will be on flexi fare system, Railway Board Member Mohd Jamshed told PTI.

There are total 42 Rajdhani trains, 46 Shatabdi and 54 Duronto trains and railways expect to garner about Rs 500 crore from the new fare structure in these trains.

The passenger revenue target for the current fiscal is Rs 51,000 crore as against Rs 45,000 crore in the last fiscal, an increase of Rs 6000 cr for 2016-17.

"We are introducing the flexi fare system which is dynamic in nature in these trains on an experimental basis and it will be reviewed after 3/4 months," Jamshed said, adding "It will also act as a measure against touts."

For II AC and Chair Car, the maximum hike will be 50 per cent while for III AC, it will be 40 per cent.

He said basically the hike is about one and a half times more in the flexi system. Other supplementary charges like reservation charges, superfast charge, catering charges, service tax as applicable shall remain unchanged.

For example, the New Delhi-Mumbai 3AC fare in Mumbai Rajdhani, which is Rs 1628 as base fare will be Rs 1791 with 10 pere cent increase and it will go upto Rs 2279 with maximum 50 per cent increase.

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