This is a fact that 3rd AC class is most profitable class of Indian Railways. But actually if we see the fare structure then 1st AC and second AC must be more profitable.
Absolutely a large number of seats get occupied by free travelers in these classes which not only include current MP/MLAs but ex MP/MLA, railway employees, high government officials and other pass holders as well.
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According to my assumption, this amount could be approx 500 carores and same can be recovered using different other methods.
1. Not more then 15% seats should be given to free pass holders.
2. Some seats must be allocated in Tatkal quota.
3. No HO or any other quota if any subsidy has been used(including senior citizens)
4. New MP/MLAs should not have these facilities.