This is the correct approach due to 2 reasons.
1. there is no scope of introducing new services during peak hours as per WR. if existing services are replaced by AC services, then it will lead to chaos as majority of second class pass holders will not upgrade to AC local pass.
2.During off peak hours AC services will run empty leading to revenue loss.
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to improve acceptance of AC coaches/local is to make the fare equal to existing first class ticket/pass fares. The Fare for First class should simultaneously be reduced by say 20% which would allow the second class pass holders to upgraded to first class and subsequently to AC. This will be a win win situation for everyone.
By increasing the AC fares to 1.3 times first class fares is a very greedy approach by the Railway Board. In the existing first class category what additional services is Railways providing? Seats with cushions? That too is not relevant when 70% of the people do not get opportunity to sit during peak hours. This is an irrational approach and needs immediate correction.
On top of it there are around 20% non bonafide passengers during peak hours in first class leading to overcrowding equivalent to second class as there is absolutely no ticket checking during peak hours in the local trains