Fare calculation method a 'trade secret', cannot be revealed: Railways on RTI appeal

(File photo)

The Indian Railways has informed the Central Information Commission (CIC) that the formula used to determine passenger train fares is protected as a “trade secret” and is commercially confidential and therefore cannot be revealed under the Right to Information (RTI) Act.

The CIC has rejected an RTI plea seeking a detailed explanation of how base fares are calculated, including the role of dynamic pricing and the impact of Tatkal bookings, both in general and for a specific train — the Paschim Superfast Express, PTI reported.

According to a reply from the Railway Board, accessed by PTI, ticket fares are structured according to travel class with differences reflecting the facilities and services offered in each category.

The Board, however, asserted that the classification system and the underlying methodology used to fix fares fall under the ambit of trade secrets and intellectual property, making them exempt from disclosure under Section 8 of the RTI Act.

The Board maintained, “In so far as classification and methodology of fare fixation of different classes is concerned, the policy mechanism falls in the domain of trade secret/ intellectual property rights."

Section 8 of the RTI Act outlines categories of information that public authorities are not required to share, including matters related to national security, trade secrets and personal privacy.

Railway officials also cited earlier CIC orders that had upheld the non-disclosure of pricing methodology, arguing that the Indian Railways functions as a commercial utility while also discharging social obligations in the national interest, PTI reported.

“It is a known fact that the Indian Railways are run as a commercial utility and at the same time, being an instrumentality of the State, are required to discharge various social obligations in national interest,” the Railways said.

The Chief Public Information Officer (CPIO) of the Railway Board further argued that releasing detailed pricing formulas would not serve public interest.

“Disclosure of pricing-related information is not justified in public interest, as profit, if any, is distributed or transferred to the common man and is not retained for personal gain, unlike in the case of private enterprises,” the response stated.

In its order, the CIC observed that the public information officer had already shared all information that could be disclosed, along with the general principles governing railway fare policies, and was not obligated to generate or interpret data beyond existing records, PTI reported.

Finding no infirmity in the reply and noting the appellant’s absence during the hearing, Information Commissioner Swagat Das said no further intervention was required and disposed of the appeal.