Lok Sabha Question No. 3579 (UNSTARRED), answered on 2016-12-07
Subject: Loss in Freight and Passenger Traffic Segment
Ministry: RAILWAYS
Asked by: T.G. VENKATESH BABU, HARI MANJHI, SUBHASH CHANDRA BAHERIA, NALIN KUMAR KATEEL

## GOVERNMENT OF INDIA MINISTRY OF RAILWAYS

## LOK SABHA UNSTARRED QUESTION NO. 3579 TO BE ANSWERED ON 07.12.2016

## LOSS IN FREIGHT AND PASSENGER TRAFFIC SEGMENT

3579. SHRI VENKATESH BABU T. G.:

SHRI HARI MANJHI:

SHRI SUBHASH CHANDRA BAHERIA:

SHRI NALIN KUMAR KATEEL:

Will the Minister of RAILWAYS  be pleased to state:

- (a) whether  the  Railways  lose  massive  amounts  in  freight  and passenger traffic;
- (b) if  so,  the  details  of  loss  incurred  during  the  last  three  years  in freight and passenger traffic, separately, year-wise;
- (c) the details of  norms for fixing freight charges for transportation of goods;
- (d) whether decline in the share of the Railways in freight traffic in the recent years is one of the major reasons; and
- (e) if  so,  the  details  thereof  including  the  percentage  of  freight share and the steps   taken  to  increase  the  freight  traffic  growth  in the Railways?

## ANSWER

MINISTER OF STATE IN THE MINISTRY OF RAILWAYS

(SHRI RAJEN GOHAIN)

(a) to (e) A Statement is laid on the Table of the House.

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STATEMENT  REFERRED  TO  IN  REPLY  TO  PARTS  (a)  TO  (e)  OF UNSTARRED  QUESTION  NO.  3579  BY  SHRI  VENKATESH  BABU  T.G., SHRI  HARI  MANJHI,  SHRI  SUBHASH  CHANDRA  BAHERIA  AND  SHRI NALIN  KUMAR  KATEEL    TO  BE  ANSWERED  IN  LOK  SABHA  ON 07.12.2016 REGARDING LOSS IN FREIGHT AND PASSENGER TRAFFIC SEGMENT

- (a)  &  (b):  No,  Madam.  The  Railways  have  not  incurred  any  loss  in freight  segment.  However,  the  loss  incurred  in  passenger  segment during the last three years is as under:-

( ` in crore)

| Year        |   Amount |
|-------------|----------|
| 2013-14     |    32067 |
| 2014-15     |    33491 |
| 2015-16(RE) |    34031 |

- (c) The fixation of rates for transportation of goods and passenger by Indian Railways is done based on certain principle which includes cost of service, value of service, what the traffic can bear, competition  from  alternative  modes  of  transport,  socio-economic condition of the country, etc.
- (d)&(e)The freight earnings contribute significantly to Indian Railways' total traffic earnings :

| Year    | Freight Earning as a percentage of total Railways earning   |
|---------|-------------------------------------------------------------|
| 2012-13 | 68.80%                                                      |
| 2013-14 | 67.15%                                                      |
| 2014-15 | 67.35%                                                      |
| 2015-16 | 66.68%                                                      |

The steps taken to increase freight earnings are as under:-

- I.  Two  Schemes  viz,  (1)  Special  Freight  Operator  (SFTO)  and  (2) Automobile Freight Train Operator Scheme (AFTO) have been launched to improve Railways share in the market. The details are as under:-

(1)Special Freight Operator Scheme (SFTO)SFTO provides investments  for  procurement  of  High  Capacity  and  Special  Purpose wagons  for  specific  commodities  like  molasses,  fly  ash,  edible  oil, caustic soda, chemical, petrochemicals, alumina and bulk cement.

(2)Automobile  Freight  Train  Operator  Scheme  (AFTO)-  AFTO  provides procurement and operation of special purpose wagons for transportation of automobile i.e. two /three - wheelers, cars and tractors etc.

- II. Apart from the above, following steps have also been taken to increase freight earnings:-
- (1) Rationalization of Merry-Go-Round (MGR) system w.e.f. 01.04.2016.
- (2) Withdrawal of Port Congestion Charge from 13.04.2016.
- (3) Withdrawal  of  Busy  Season  Charge  for  traffic  loaded  in  BCN group and BCNHL wagons w.e.f 01.05.2016 till 30.06.2016.
- (4) Withdrawal of dual freight policy for iron ore w.e.f 10.05.2016.
- (5) Re-introduction of short lead concession and reduction of minimum distance for charge from 125 km to 100 km w.e.f. 15.07.2016.
- (6) A liberalized policy introduced for two point booking of covered wagons in which any two stations within a distance of 200 km in busy seasons and 400 km in lean season have been permitted for two point booking w.e.f. 22.07.2016.
- (7) Charging  of  commodities  for  transportation  by  containers  has been liberalized.
- (8) Guidelines for Station to station Rate policy issued.

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