Lok Sabha Question No. 795 (UNSTARRED), answered on 2018-02-07
Subject: Revenue Loss
Ministry: RAILWAYS
Asked by: RAM CHARITRA

## GOVERNMENT OF INDIA MINISTRY OF RAILWAYS

## LOK SABHA UNSTARRED QUESTION NO. 795

## TO BE ANSWERED ON 07.02.2018

## REVENUE LOSS

## 795.    SHRI RAM CHARITRA NISHAD:

Will the Minister of RAILWAYS be pleased to state:

- (a) whether  the  biggest  challenge  for  the  Railways  is  to  meet  the public sector obligation along with matching the performance of the corporate sector and if so, the details thereof;
- (b) whether the revenue loss for meeting public services obligation is as high as 30,000 crore and if so, the details thereof;
- (c) whether  the  Railways  is  focusing  on  bolstering  its  freight  and non-fare revenue and if so, the details thereof; and
- (d) whether the non-fare revenue rose 72% this year and the target is to increase the non-fare revenue to around 35,000 crore in the next 10 years and if so, the details thereof?

## 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.

*****

STATEMENT  REFERRED  TO  IN  REPLY  TO  PARTS  (a)  TO  (d)  OF UNSTARRED QUESTION NO.795 BY SHRI RAM CHARITRA NISHAD TO BE ANSWERED IN LOK SABHA ON 07.02.2018 REGARDING REVENUE LOSS (a)  &  (b):  Yes,  Madam.  Indian  Railways  carries  out  certain  transport activities which are uneconomic in nature but carried out in the larger interest of the society. Overall, the loss incurred on account of these activities for the year 2016-17 was 39,607.45 crore. (c) & (d): Yes, Madam. In recent past, Ministry of Railways has taken a number  of  steps  to  attract  Freight  traffic  such  as  Long  Term  Tariff Contract with key freight  customers,  guidelines  on  station  to  station rates,  liberalized  automatic  freight  rebate  scheme  in  empty  flow directions, withdrawal of port congestion charge, proliferation of Rollon-Roll-off service on Indian Railways, withdrawal of levy of congestion charge for stone traffic transported from Eastern Railway to Bangladesh  via  Darsana/Benapole,  rationalization  of  coal  tariff,  more flexibility in mini rake loading, withdrawal of dual freight policy of iron ore  traffic,  re-introduction  of  short  lead  concession  &  reduction  in minimum distance for charge from125 Km to 100 Km., expanding the freight basket, dispensation from mandatory (100%) weighment in case of loading of standard bags of uniform size, rationalization of Merry-GoRound (MGR) scheme etc. In addition, Ministry of Railways has also introduced other schemes to improve  freight  share  like  procurement  of  wagons  (rolling  stock) Wagon Investment  Scheme  (LWIS),  Special  Freight  Train  Operator  (SFTO), Automobile  Freight  Train  Operator  (AFTO),  Wagon  Leasing  Scheme (WLS), development of Private Freight Terminals (PFT) through Public through Public Private Partnership mode, Liberalized Private Partnership mode etc.

The non-fare revenue (sundry earnings) increased by 74.88%  in financial  year  2016-17  over  2015-16.  Many  of  the  World  Railway systems generate 10% to 20% of the revenues from non-tariff sources. Over a period of the next five years, Railways will endeavour to reach this World average by monetizing assets and undertaking other revenue yielding activities.

*****