Lok Sabha Question No. 4457 (UNSTARRED), answered on 2017-03-29
Subject: Reduction in Traffic Earnings
Ministry: RAILWAYS
Asked by: ADVOCATE NARENDRA KESHAV SAWAIKAR

## GOVERNMENT OF INDIA MINISTRY OF RAILWAYS

## LOK SABHA UNSTARRED QUESTION NO. 4457 TO BE ANSWERED ON 29.03.2017

## REDUCTION IN TRAFFIC EARNINGS

4457.   ADV. NARENDRA KESHAV SAWAIKAR :

Will the Minister of RAILWAYS be pleased to state :

- (a) whether  most  of  the  Zonal  Railways  have  projected  reduced  traffic earnings;
- (b)
- if so, the details thereof together with the reasons therefor;
- (c) whether the Railways have fixed high  operating  ratio  and  if  so,  the details thereof; and
- (d) the steps initiated by the Railways to resolve the problems?

## ANSWER

MINISTER OF STATE IN THE MINISTRY OF RAILWAYS

(SHRI RAJEN GOHAIN)

- (a) to (d) : A Statement is laid on the Table of the House.

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STATEMENT REFERRED TO IN  REPLY  TO  PARTS  (a)  TO  (d)  OF  UNSTARRED QUESTION  NO.  4457  BY  ADV.  NARENDRA  KESHAV  SAWAIKAR  TO  BE ANSWERED  IN  LOK  SABHA  ON  29.03.2017  REGARDING  REDUCTION  IN TRAFFIC EARNINGS

- (a) Yes,  Madam.  Most  of  the  Zonal  Railways  had  projected  reduced  traffic earnings for Revised Estimates vis-à-vis the Budget Estimates 2016-17.
- (b) The zone-wise projection of traffic earnings for Revised Estimates 2016-17 vis-à-vis the Budget Estimates and the Revised Estimates fixed by the Ministry of  Railways is Appended. The reasons for reduced traffic earnings projection are mainly negative growth in freight loading, drop in average freight lead and negative growth in non-suburban (non-PRS) passengers.

(c) Railways have fixed the Operating  Ratio in Revised  Estimates 2016-17 at 94.9% as against 92% envisaged in the Budget Estimates mainly on account of drop in traffic earnings.

(d) In  the  current  year,  the  attempt  has  been  to  achieve  the  traffic  earnings target  fixed  in  the  Revised  Estimates  and  to  effect  some  savings  in  the Ordinary  Working  Expenses  vis-à-vis  the  Revised  Grant.  However,  as  an ongoing process, revenue enhancing measures are adopted which, inter alia, include  targeting  progressively  higher  traffic  throughput,  effective  marketing strategies to capture more and more traffic, creation of additional capacity and optimum utilization of the existing rail infrastructure, enhancement in productivity  and  efficiency,  improvement  of  passenger  interface,  periodic rationalization  of  fare  and  freight  rates  and  focus  on  increasing  the  share  of non-fare revenue sources in Railways' earnings. Expenditure control measures include strict economy and austerity measures, improved man-power planning, better asset utilization, inventory management and optimizing fuel consumption etc.

****

APPENDIX REFERRED TO IN REPLY TO LOK SABHA UNSTARRED QUESTION NO. 4457 BY ADV. NARENDRA KESHAV SAWAIKAR ON REDUCTION IN TRAFFIC EARNINGS TO BE ANSWERED ON 29.03.2017

Total Traffic earnings of Railways for 2016-17

( ` in crore)

| Zones              |   Budget Estimates | Revised Estimates projected by   |   Revised Estimates fixed by Ministry of Railways |
|--------------------|--------------------|----------------------------------|---------------------------------------------------|
| Central            |           15594.2  | zones 13778.55                   |                                          13878.8  |
| Eastern            |            6556.76 | 6444.10                          |                                           6550.39 |
| East Central       |           12189.3  | 11078.49                         |                                          11367.8  |
| East Coast         |           14832.9  | 15725.68                         |                                          15868.4  |
| Northern           |           19715.8  | 16540.00                         |                                          17364.7  |
| North Central      |           15430    | 12931.63                         |                                          13556.8  |
| North Eastern      |            3287.4  | 3015.41                          |                                           3118.35 |
| Northeast Frontier |            3914.57 | 4397.94                          |                                           6036.15 |
| North Western      |            8586.39 | 7180.06                          |                                           8070.06 |
| Southern           |            8940.45 | 7432.24                          |                                           7860.31 |
| South Central      |           17095.2  | 14845.09                         |                                          15265.4  |
| South Eastern      |           13294    | 12469.38                         |                                          12966.9  |
| South East Central |           13084.8  | 11680.57                         |                                          12355.7  |
| South Western      |            5211.73 | 4754.03                          |                                           4934.48 |
| Western            |           14584.3  | 11687.63                         |                                          12350.6  |
| West Central       |           12159.8  | 9813.50                          |                                          10199    |
| Metro              |             242.17 | 233.54                           |                                            256.27 |
| Total              |          184720    | 164007.83                        |                                         172000    |