Railways Minister Suresh Prabhu on Wednesday unveiled a new reservation system – Vikalp – for passengers with tickets on the waiting list. Under the scheme, which will be rolled out on April 1, waitlisted passengers will have the option to travel by an another train, including premier ones such as the Rajdhani and Shatabdi, on the same route at no extra cost.

Passengers who opt for the Vikalp scheme will be provided accommodation in another train. But they can choose the new service only after the charts for their current train are prepared. The Vikalp scheme will initially be available for e-tickets only.

However, the usual hefty cancellation charges will apply if passengers do not wish to travel by the alternative they are given. There are no refunds once the charts are prepared, and 50% of the cost of the ticket is deducted if one cancels between 12 and four hours before departure.

The Railway Ministry ran the scheme on a trial basis for the past six months. In November 2016, Vikalp was launched in the Delhi-Lucknow and Delhi-Jammu sectors. It is aimed at utilising the vacant berths in premier trains in all major routes. The vacancy of berths in trains is around 12%, according to The Indian Express.

The move is a win-win for the Railways financially. The hope for an alternative will force passengers to not cancel their tickets and seek refunds even when the chances of their waitlisted ticket getting confirmed are slim. A Rail Bhavan official told The Indian Express that the Railways spends about Rs 3,500 crore yearly on refunds.