Trade Secrets on Track: Indian Railways' Fare Calculation Controversy

The Indian Railways declared its fare calculation method a trade secret, exempting it from disclosure under the RTI Act. The Central Information Commission dismissed an application seeking details on fare calculations, citing commercial confidentiality. The Railway Board stressed its dual role as both a commercial and social entity.

The Indian Railways has classified its fare calculation methodology as a 'trade secret,' citing commercial confidentiality to exempt it from disclosure under the Right to Information (RTI) Act. This revelation came to light during a Central Information Commission (CIC) hearing that dismissed a plea for detailed fare calculation information.

The CIC was responding to an appeal seeking clarity on the base fare calculation mechanisms, which include dynamic pricing and the effects of Tatkal bookings, particularly for the Paschim Superfast Express. Railway officials argue that the class-based fare variations are proprietary, falling under the domain of trade secrets and intellectual property rights, and thus, not shared publicly.

Reiterating its stance, the Railway Board emphasized that while it operates as a commercial entity, it also fulfills social obligations vital to national interest. They deemed that disclosing the detailed pricing mechanisms would not serve public interest, as revenues are allocated to benefit the common man, aligning with its broader state functions.

(With inputs from agencies.)