Lok Sabha Question No. 3159 (UNSTARRED), answered on 2018-03-14
Subject: Shortfall in Revenue
Ministry: RAILWAYS
Asked by: SANJAY SHAMRAO DHOTRE, RAHUL RAMESH SHEWALE, BHARTRUHARI MAHTAB

## GOVERNMENT OF INDIA MINISTRY OF RAILWAYS

## LOK SABHA

## UNSTARRED QUESTION NO. 3159 TO BE ANSWERED ON 14.03.2018

## SHORTFALL IN REVENUE

3159. SHRI SANJAY DHOTRE:

SHRI RAHUL SHEWALE:

SHRI BHARTRUHARI MAHTAB:

Will the Minister of RAILWAYS  be pleased to state:

- (a) whether there is a shortfall in revenue earned vis-à-vis its target from passengers  and  freight  during  each  of  the  last  three  years  and  the current year;
- (b) if so, the details thereof, zone-wise and the reasons therefor;
- (c) whether the Railways has incurred huge losses on account of underutilisation  of  railways  cargo  services  in  the  country  during  the  said period;
- (d) if so, the details thereof, zone-wise and the reasons therefor;
- (e) whether  the  Government  has  conducted  any  survey  to  assess  the contribution of each zone to the losses incurred/profit earned by the Railways during the aforesaid period; and
- (f) if  so,  the  details  and  the  outcome  thereof,  zone-wise  and  if  not,  the reasons therefor?

## ANSWER MINISTER OF STATE IN THE MINISTRY OF RAILWAYS

(SHRI RAJEN GOHAIN)

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

- *****

STATEMENT REFERRED TO IN REPLY TO PARTS (a) TO (f) OF UNSTARRED QUESTION NO. 3159 BY SHRI SANJAY DHOTRE, SHRI RAHUL SHEWALE & SHRI  BHARTRUHARI  MAHTAB    TO  BE  ANSWERED  IN  LOK  SABHA  ON

14.03.2018 REGARDING SHORTFALL IN REVENUE

(a)&  (b):  Yes,  Madam.  There  has  been  a  shortfall  in  the  revenue  earned under passengers and freight  vis-à-vis respective  targets during the last three years i.e. 2014-15, 2015-16 and 2016-17. In the current year 2017-18 (till the end of February-2018) also, these earnings have remained short of respective  proportionate  targets.  Zone-wise  position  is  appended.  The reasons of shortfall are broadly as under:

## 2014-15

-  Drop  in  originating  passengers-  both  sub-urban  and  non-suburban (Non-PRS).
- 
- Drop in loading and average freight lead.

## 2015-16

-  Drop  in  originating  passengers-  both  sub-urban  and  non-suburban (Non-PRS).
- 
- Massive drop in loading and average freight lead.

## 2016-17

-  Persistent  drop  in  originating  passengers-non-suburban-non  PRS segment.
- 
- Massive drop in loading and average freight lead.

## 2017-18(Upto February-18)

- 
- Persistent drop in non-suburban (non-PRS) passengers.
-  Shortfall  in  loading  against  proportionate  target  under  Coal,  Iron Ore, Foodgrains, Fertiliser and POL.
-  Shortfall in freight lead against proportionate target under Pig iron and  Finished  steel,  Cement,  Foodgrains,  Fertiliser,  POL,  Container Services and Balance other goods.

(c)& (d): The last three years and current year container loading details in Indian Railways are as under:

(in Million tonnes)

| Zonal Railway              |   2014- 15 |   2015-16 |   2016-17 |   2017-18 (upto Feb.18) |
|----------------------------|------------|-----------|-----------|-------------------------|
| Central Railway            |       9.52 |      9.41 |      7.97 |                    7.6  |
| Eastern Railway            |       0.89 |      0.88 |      1.04 |                    0.95 |
| East Central Railway       |       0.2  |      0.29 |      0.26 |                    0.25 |
| East Coast Railway         |       1.15 |      1.33 |      2.01 |                    2.13 |
| Northern Railway           |       8.86 |      8.02 |      8.53 |                    7.8  |
| North Central Railway      |       2.39 |      1.98 |      2.01 |                    2.09 |
| North Eastern Railway      |       0.28 |      0.28 |      0.18 |                    0.36 |
| Northeast Frontier Railway |       0.1  |      0.12 |      0.09 |                    0.1  |
| North Western Railway      |       4.95 |      3.66 |      4.82 |                    6.24 |
| Southern Railway           |       1.56 |      1.51 |      1.53 |                    1.36 |
| South Central Railway      |       1.15 |      1.01 |      0.88 |                    0.93 |
| South Eastern Railway      |       1.34 |      1.37 |      1.24 |                    1.28 |
| South East Central Railway |       0.57 |      0.46 |      0.59 |                    0.63 |
| South Western Railway      |       0.98 |      0.77 |      0.8  |                    0.65 |
| Western Railway            |      14.34 |     14.45 |     14.85 |                   15.78 |
| West Central Railway       |       0.56 |      0.65 |      0.69 |                    0.8  |
| Konkan Railway             |       0    |      0    |      0    |                    0.09 |
| Total                      |      48.84 |     46.19 |     47.49 |                   49.04 |

The  downfall  in  2015-16  from  the    year    2014-15  is  linked  to  the  global economic  situation  and  not  on  account  of  under-utilisation  of  Railways cargo services.

(e)&  (f):  Seen  from  the  overall  context,  Railways  have  not  incurred  any operating loss so far but have generated 'surplus' of various magnitudes after  meeting  all  revenue  expenditure.  However,  there  are  certain  zones which are not able to generate excess over their revenue expenditure as their revenue expenditure exceeds their revenue receipts.

This is  because  all  zones  of Indian Railways,  for reasons  of  their geographical location, state of industrialization/ commercial/business activity,  are  not  evenly  placed  in  respect  of  traffic  earnings  which  are apportioned amongst the zones on the basis of traffic carried/traversed on the  respective  system.  Nevertheless,  all  the  zones  irrespective  of  their traffic  output,  have  a  fixed  element  of  operating  expenses  to  run  the system.

*****

## APPENDIX REFERRED TO IN REPLY TO PART (a) AND (b) OF THE UNSTARRED QUESTION NO.3159 BY SHRI SANJAY DHOTRE, SHRI RAHUL SHEWALE AND SHRI BHARTRUHARI MAHTAB TO BE ANSWERED IN LOK SABHA ON 14.03.2018 REGARDING SHORTFALL IN REVENUE.

|                    | 2014-15          | 2014-15   | 2014-15                                   | 2015-16          | 2015-16   | 2015-16                                      | 2016-17          | 2016-17   | 2016-17                                      | 2017-18 (Upto Feb.18.)   | 2017-18 (Upto Feb.18.)                 | 2017-18 (Upto Feb.18.)   | 2017-18 (Upto Feb.18.)                         |
|--------------------|------------------|-----------|-------------------------------------------|------------------|-----------|----------------------------------------------|------------------|-----------|----------------------------------------------|--------------------------|----------------------------------------|--------------------------|------------------------------------------------|
|                    |                  |           |                                           |                  |           |                                              |                  |           |                                              | ( in                     | ( in                                   | ( in                     | ₹ crore)                                       |
| Zones              | Revised Estimate | Actual    | Variation of Actual over Revised Estimate | Revised Estimate | Actual    | Variati on of Actual over Revise d Estima te | Revised Estimate | Actual    | Variati on of Actual over Revise d Estimat e | Revised Estimate         | Proporti onate target to end of Feb'18 | Actual to end Feb'18     | Variation of Actual over proportion ate target |
| Passenger          | Passenger        | Passenger | Passenger                                 | Passenger        | Passenger | Passenger                                    | Passenger        | Passenger | Passenger                                    | Passenger                | Passenger                              | Passenger                | Passenger                                      |
| Central            | 5216.00          | 4788.99   | -427.01                                   | 5216.00          | 4929.52   | -286.48                                      | 5313.56          | 5045.29   | -268.27                                      | 5550.00                  | 5024.00                                | 4897.11                  | -126.89                                        |
| Eastern            | 2086.44          | 1999.12   | -87.32                                    | 2086.44          | 2106.97   | 20.53                                        | 2298.94          | 2232.32   | -66.62                                       | 2345.75                  | 2125.38                                | 2071.48                  | -53.90                                         |
| East Central       | 2189.37          | 2080.31   | -109.06                                   | 2189.37          | 2220.29   | 30.92                                        | 2442.26          | 2334.38   | -107.88                                      | 2456.58                  | 2250.16                                | 2191.09                  | -59.07                                         |
| East Coast         | 1269.39          | 1154.67   | -114.72                                   | 1269.39          | 1245.99   | -23.40                                       | 1337.91          | 1306.11   | -31.80                                       | 1430.36                  | 1298.13                                | 1278.62                  | -19.51                                         |
| Northern           | 6643.09          | 5646.61   | -996.48                                   | 6643.09          | 5912.20   | -730.89                                      | 6582.48          | 6321.10   | -261.38                                      | 6670.94                  | 6083.51                                | 5764.80                  | -318.71                                        |
| North Central      | 4051.46          | 4024.54   | -26.92                                    | 4051.46          | 4301.13   | 249.67                                       | 4599.00          | 4428.08   | -170.92                                      | 4900.00                  | 4411.85                                | 4312.80                  | -99.05                                         |
| North Eastern      | 1491.30          | 1374.51   | -116.79                                   | 1491.30          | 1473.55   | -17.75                                       | 1452.19          | 1500.66   | 48.47                                        | 1600.00                  | 1465.91                                | 1443.50                  | -22.41                                         |
| Northeast Frontier | 1000.00          | 1023.03   | 23.03                                     | 1000.00          | 1016.27   | 16.27                                        | 1134.95          | 1155.74   | 20.79                                        | 1160.00                  | 1063.33                                | 1054.99                  | -8.34                                          |
| North Western      | 1800.24          | 1656.73   | -143.51                                   | 1800.24          | 1801.66   | 1.42                                         | 1969.98          | 1929.28   | -40.70                                       | 2096.52                  | 1892.23                                | 1821.24                  | -70.99                                         |
| Southern           | 3953.72          | 3719.98   | -233.74                                   | 3953.72          | 3858.67   | -95.05                                       | 4198.20          | 4011.80   | -186.40                                      | 4380.00                  | 3969.18                                | 3890.23                  | -78.95                                         |
| South Central      | 4265.00          | 4011.09   | -253.91                                   | 4265.00          | 4280.75   | 15.75                                        | 4608.40          | 4530.90   | -77.50                                       | 4994.62                  | 4524.35                                | 4427.29                  | -97.06                                         |
| South Eastern      | 1502.94          | 1369.41   | -133.53                                   | 1502.94          | 1456.75   | -46.19                                       | 1594.09          | 1501.60   | -92.49                                       | 1635.00                  | 1499.49                                | 1428.92                  | -70.57                                         |
| South East Central | 1013.63          | 993.58    | -20.05                                    | 1013.63          | 1035.30   | 21.67                                        | 1099.83          | 1071.28   | -28.55                                       | 1164.66                  | 1059.11                                | 1033.47                  | -25.64                                         |
| South Western      | 1500.00          | 1339.38   | -160.62                                   | 1500.00          | 1375.01   | -124.99                                      | 1517.56          | 1393.22   | -124.34                                      | 1530.00                  | 1408.68                                | 1359.60                  | -49.08                                         |
| Western            | 4358.72          | 4143.48   | -215.24                                   | 4358.72          | 4232.14   | -126.58                                      | 4463.14          | 4327.55   | -135.59                                      | 4650.00                  | 4222.09                                | 4143.04                  | -79.05                                         |
| West Central       | 2850.00          | 2692.56   | -157.44                                   | 2850.00          | 2857.58   | 7.58                                         | 3185.68          | 3004.41   | -181.27                                      | 3360.57                  | 3118.00                                | 3006.37                  | -111.63                                        |
| Metro              | 184.85           | 171.62    | -13.23                                    | 184.85           | 179.48    | -5.37                                        | 201.83           | 186.74    | -15.09                                       | 200.00                   | 183.49                                 | 177.84                   | -5.65                                          |
| Total              | 45376.15         | 42189.61  | -3186.54                                  | 45376.15         | 44283.26  | -1092.89                                     | 48000.00         | 46280.46  | -1719.54                                     | 50125.00                 | 45598.89                               | 44302.39                 | -1296.50                                       |

## APPENDIX REFERRED TO IN REPLY TO PART (a) AND (b) OF THE UNSTARRED QUESTION NO.3159 BY SHRI SANJAY DHOTRE, SHRI RAHUL SHEWALE AND SHRI BHARTRUHARI MAHTAB TO BE ANSWERED IN LOK SABHA ON 14.03.2018 REGARDING SHORTFALL IN REVENUE.

|                    | 2014-15          | 2014-15   | 2014-15              | 2015-16          | 2015-16   | 2015-16              | 2016-17          | 2016-17   | 2016-17              | 2017-18 (Upto Feb.18.)   | 2017-18 (Upto Feb.18.)                 | 2017-18 (Upto Feb.18.)   | 2017-18 (Upto Feb.18.)           |
|--------------------|------------------|-----------|----------------------|------------------|-----------|----------------------|------------------|-----------|----------------------|--------------------------|----------------------------------------|--------------------------|----------------------------------|
|                    |                  |           |                      |                  |           |                      |                  |           |                      |                          |                                        |                          | ( ₹ in crore)                    |
| Zones              | Revised Estimate | Actual    | Var. of Act.ove r RE | Revised Estimate | Actual    | Var. of Act.ove r RE | Revised Estimate | Actual    | Var. of Act.ove r RE | Revised Estimate         | Proportion ate target to end of Feb'18 | Actual to end Feb'18     | Var. of Actual over Prop. Target |
| Goods              | Goods            | Goods     | Goods                | Goods            | Goods     | Goods                | Goods            | Goods     | Goods                | Goods                    | Goods                                  | Goods                    | Goods                            |
| Central            | 7599.00          | 6825.94   | -773.06              | 7599.00          | 7354.87   | -244.13              | 7447.00          | 6695.42   | -751.58              | 7500.00                  | 6838.00                                | 6484.05                  | -353.95                          |
| Eastern            | 3458.34          | 3622.07   | 163.73               | 3458.34          | 3649.15   | 190.81               | 3723.96          | 4049.99   | 326.03               | 4500.00                  | 3942.48                                | 3591.22                  | -351.26                          |
| East Central       | 8786.46          | 7771.60   | -1014.86             | 8786.46          | 8558.99   | -227.47              | 8681.12          | 8302.24   | -378.88              | 9140.00                  | 8212.47                                | 7912.69                  | -299.78                          |
| East Coast         | 12381.86         | 11379.40  | -1002.46             | 12381.86         | 12290.90  | -90.96               | 14201.96         | 13263.88  | -938.08              | 14900.00                 | 13340.88                               | 12833.24                 | -507.64                          |
| Northern           | 7186.49          | 7313.74   | 127.25               | 7186.49          | 7191.59   | 5.10                 | 7372.20          | 6697.96   | -674.24              | 7000.00                  | 6448.77                                | 6174.36                  | -274.41                          |
| North Central      | 9880.61          | 8782.42   | -1098.19             | 9880.61          | 9321.97   | -558.64              | 8595.44          | 8490.48   | -104.96              | 10000.00                 | 9022.01                                | 8706.29                  | -315.72                          |
| North Eastern      | 1289.34          | 1322.40   | 33.06                | 1289.34          | 1321.13   | 31.79                | 1440.09          | 1409.23   | -30.86               | 1650.00                  | 1465.78                                | 1408.19                  | -57.59                           |
| Northease Frontier | 1650.00          | 1871.88   | 221.88               | 1650.00          | 1930.89   | 280.89               | 1980.00          | 1918.66   | -61.34               | 1940.00                  | 1778.33                                | 1736.77                  | -41.56                           |
| North Western      | 5381.24          | 4914.57   | -466.67              | 5381.24          | 4772.78   | -608.46              | 4778.23          | 4465.17   | -313.06              | 4800.00                  | 4364.07                                | 4216.78                  | -147.29                          |
| Southern           | 2857.04          | 3045.72   | 188.68               | 2857.04          | 2816.17   | -40.87               | 2682.87          | 2615.32   | -67.55               | 2850.00                  | 2523.33                                | 2434.89                  | -88.44                           |
| South Central      | 10605.00         | 10778.47  | 173.47               | 10605.00         | 10145.43  | -459.57              | 9847.22          | 9366.99   | -480.23              | 10800.00                 | 9675.69                                | 9404.95                  | -270.74                          |
| South Eastern      | 10448.57         | 9611.12   | -837.45              | 10448.57         | 10558.34  | 109.77               | 10892.15         | 10899.96  | 7.81                 | 12550.00                 | 11230.17                               | 10679.73                 | -550.44                          |
| South East Central | 11124.77         | 9613.06   | -1511.71             | 11124.77         | 10932.29  | -192.48              | 10996.79         | 10671.80  | -324.99              | 12110.00                 | 10846.40                               | 10256.84                 | -589.56                          |
| South Western      | 2960.00          | 3243.40   | 283.40               | 2960.00          | 3000.64   | 40.64                | 2935.95          | 2792.27   | -143.68              | 3160.00                  | 2844.78                                | 2644.90                  | -199.88                          |
| Western            | 8069.00          | 8146.59   | 77.59                | 8069.00          | 7597.29   | -471.71              | 6597.76          | 6100.69   | -497.07              | 6800.00                  | 6154.96                                | 5991.03                  | -163.93                          |
| West Central       | 8175.00          | 7548.96   | -626.04              | 8175.00          | 7765.22   | -409.78              | 6727.26          | 6598.48   | -128.78              | 7800.00                  | 7215.30                                | 6715.10                  | -500.20                          |
| Total              | 111852.72        | 105791.34 | -6061.38             | 111852.72        | 109207.65 | -2645.07             | 108900.00        | 104338.54 | -4561.46             | 117500.00                | 105903.42                              | 101191.03                | -4712.39                         |