I have specific problem with the AC II reservation. The side bearths are given at numbers 5 or 6 ,11or 12 and like wise. These bearths are short and narrow in comparison to the inner bearths. More over they do not have plug or fan . They are secluded and highly inconvenient. Still if you do the reservations well in advance on net you most likely get these only. So you are a looser even if you have done booking in advance. You go on a AC III tier bearth by paying higher fare. Nobody changes this and you are compelled to travel on these with lot of discomfort and frustration.
More frustrating is that VIPs , or agent booking or Tatkal people get the inner bearths at the eleventh hour. They enjoy comfortable journey and laugh at you.
My suggestions are;
1 The numbering system be changed and inner bearths should be allotted first.
2 These side bearts should be given to the last miniut travelers.
3There could be a concession in ACII fare for the side bearths or
4 Some additional facility be given to passengers travelling on these.
5 VIPs or the free pass holders be given these more  

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I fully agree with the view and further more wish to say that not only it is very uncomfortable in side Berth the Upper berth of the Inner side is also too short in height from the celing of the Train so that for any person with even avg height to sit properly which is atleast reqd for some time during a course of journey and one have to sit in head bent position if not always lying down. The matter eventually becomes worse when the traveller have to arrange the Bed Rolls to lie down in the night and very painful after completion of the journey. Besides this we have found frequent incidents of Theft particularly in AC Compartments . All these should be seriously dealt by the Authorities . more  
I fully agree with your observations Malavika Joshi. My strong suggestion is for the Indian Railway authorities to consider scrapping the side berths altogether in all sleeping classes as is the case in trains elsewhere in the world! more  
TO SOME EXTENT I AGREE WITH YOU, BUT YOUR RESERVATION REGARDING VIPS ARE NOT TRUE. PERHAPS YOU ARE NOT AWARE THAT THEY HAVE TO TRAVEL IN THE 11TH HOUR AND MOST OF THEM ARE IN OFFICIAL DUTIES AND THOSE FACILITIES ARE NOT GIVEN TO THEM, PUBLIC SERVICE WILL BE IN JEOPARDY. DO NOT EXPRESS YOU VIEW FROM ONE ANGLE WITHOUT KNOWING THE FACT. YES, BUT FOR TATKAL PASSENGERS, RAILWAYS ARE CURTAILING THE FACILITIES OF BETTER SEATS OF THE PASSENGER WHO BOOKED THEIR TICKET WELL IN ADVANCE, BUT RAILWAYS IN THIS RESPECT ARE PURELY MAKING MONEY BY DOING BUSINESS. IF THE CENTRAL GOVERNMENT( READ MINISTRY OF RAILWAYS) DO HAVE LITTLE CARE ABOUT THE GENERAL CITIZENS OF INDIA, THEN IT SHOULD IMMEDIATELY GIVE PREFERENTIAL SEATS TO THE PERSON WHO APPROACHED THEM FIRST WELL IN ADVANCE. IN SUCH CASE IN REALITY PEOPLE "PRABHU" KI AWASYA GUNGAAN KAREGI. more  
While booking e-ticket, If you ask for lower berth, normally you are allotted side-lower berth. There should be a provision, while booking e-ticket, for lower berth, upper berth, side-lower berth, side-upper berth, no choice. I agree with Malavika Joshi for all her points and especially these side lower/upper berths should be allotted to free travellers like pass holders and VIPs. Moreover, every pass holder or VIPs must be charged some fare instead of free tickets. more  
Almost every traveller has faced this problem;the side upper and lower berths are narrower and shorter, thus causing inconvenience to tall and 'healthy' passengers. In fact these berths in 2-tier AC and 3-tier AC coaches have no difference, except the provision of a shabby curtain. Authorities must take this into consideration and before attempting any design change, should offer a discount to the passengers who are allotted the side berths.....is anyone listening? more  
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