Lok Sabha Question No. 2564 (UNSTARRED), answered on 2019-12-04
Subject: Revenue in Railways
Ministry: RAILWAYS
Asked by: Prathap Simha

## GOVERNMENT OF INDIA MINISTRY OF RAILWAYS

## LOK SABHA UNSTARRED QUESTION NO.2564 TO BE ANSWERED ON 04.12.2019

## REVENUE IN RAILWAYS

## 2564.  SHRI PRATHAP SIMHA:

Will the Minister of RAILWAYS be pleased to state:

- (a) the details of revenue generated /loss incurred by the Railways during the last three years and the current year, year and Statewise;
- (b) whether  the  Railways  has  assessed  the  key  areas/sectors, incurring losses and if so, the details thereof;
- (c) whether any target has been fixed by the  Railways to increase its revenue and if so, the details thereof; and
- (d) whether  the  Government  is  considering  to  formulate  various business  models,  including  the  Public-Private  Partnership  (PPP) Mode to meet revenue gap and if so, the details thereof?

## ANSWER

MINISTER OF RAILWAYS AND COMMERCE & INDUSTRY

(SHRI PIYUSH GOYAL)

(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.  2564  BY  SHRI  PRATHAP  SIMHA  TO  BE ANSWERED IN LOK SABHA ON 04.12.2019 REGARDING REVENUE IN RAILWAYS

(a):  The  details  of  revenue    and  surplus  generated  by  the  Railways during the last three years and current year, year-wise is as under:-

( ₹ in crore)

| Year                     |   Total Receipts | Surplus Generated   |
|--------------------------|------------------|---------------------|
| 2016-17                  |           165382 | 4913.00             |
| 2017-18                  |           178930 | 1665.61             |
| 2018-19                  |           190507 | 3773.86             |
| 2019-20 (upto Oct.-2019) |           130962 | *                   |

(b): Indian Railways carries out certain transport activities which are uneconomic  in  nature  but  carried  out  in  the  larger  interest  of  the country.  Losses  incurred  on  this  account  are  assessed  every  year (annual basis) which are termed as Social Service Obligation on Indian Railways. The details of Social Service Obligation borne by Railways for the last three years are as under:-

( ₹ in crore)

| Sr. No.   | Description                                                   |   2015-16 |   2016-17 |   2017-18 |
|-----------|---------------------------------------------------------------|-----------|-----------|-----------|
| (i)       | Loss on low rated commodities                                 |        41 |        42 |        60 |
| (ii)      | Concession in Passenger Fare                                  |      1603 |      1670 |      1810 |
| (iii)     | Losses on account of EMU Suburban Services                    |      5125 |      5324 |      6184 |
| (iv)      | Losses on Un-economic Branch Lines                            |      1895 |      1855 |      2042 |
| (v)       | Losses on Strategic Lines                                     |      1225 |      1450 |      1797 |
| (vi)      | Losses on Parcel, Luggage, Postage and Catering Services etc. |      3808 |      3705 |      4729 |

| Sr. No.   | Description                                                                            |   2015-16 |   2016-17 |   2017-18 |
|-----------|----------------------------------------------------------------------------------------|-----------|-----------|-----------|
| (vii)     | Losses on account of pricing of fares below cost and other Social Services Obligations |     22262 |     25561 |     31128 |
| (viii)    | Total Losses on Coaching & Goods Services {(i) to(vii)}                                |     35959 |     39607 |     47750 |
| (ix)      | Total Social Service Obligation (viii)-(vi)                                            |     32151 |     35902 |     43021 |
| (x)       | Deduct Staff Welfare and Law & Order Cost                                              |      8933 |      9968 |     10664 |
| (xi)      | *Net Social Service Obligation (ix)-(x)                                                |     23218 |     25934 |     32357 |

## (c):  A 14% increase in Revenue target on performance of 2018-19 has been targeted during 2019-20. The revenue target for the financial year 2019-20 is ₹ 216575 crore as detailed below:-

( ₹ in crore)

| Passenger   | Other    | Goods   | Sundry Others   |
|-------------|----------|---------|-----------------|
|             | Coaching |         |                 |
| 56000       | 6000     | 143000  | 11575           |

- (d):  A  few  new  business  models  considered  to  attract  new  traffic streams, enhance loading and meet Revenue gap include the following:
- i. Redevelopment  of  Stations  and  Revenue  generation  through commercial  exploitation  of  Railway  Land  under  Public  Private Partnership (PPP) by leasing of Railway lands in station area, on long term basis to Private Developers for Commercial Development  generating  revenues  in  the  form  of  Premium  and revenue share.
- ii. Launching of pilot projects to study feasibility of using Railway Parcel  Service  for  e-tail  players  under  which  Amazon  India  has
- been  provided  2.5  tonnes  space  in  the  SLR/Break  Van  under Guard's charge for loading/unloading of consignments, in 12314/12313 New Delhi-Sealdah Rajdhani Express and 12952/12951 New Delhi-Mumbai Rajdhani Express trains.
- iii. Introduction  of  new  passenger  services  with  improved  features and  amenities  and  appropriate  fare  structure  like in Tejas Express, AC EMU services, Anubhuti Coaches, Mahamana Express, Hamsafer Express, Antodya Express, Gatiman Express.
- iv. Liberalized  Automatic  Freight  Rebate  Scheme  for  traffic  loaded in empty flow direction.
- v. New policy issued on 30.03.2017 for Long Term Tariff Contracts (LTTC) with key freight customers. The main aim of the policy is to attract additional traffic to Railways thereby garnering additional revenue by giving stable tariff rate.
- vi. Promoting Containerization through introduction of new delivery model of Double Stack Dwarf Container, liberalization of terminal access charges. For liberalization of charging of notified commodities,  the  benefit  of  Freight  All  Kind  (FAK)  has  been extended  from  30  Twenty  Foot  Equivalent  Unit  (TEU)  up  to  50 TEU per rake for movement of notified commodities.
- vii. In order to increase revenue from freight services, private freight terminal have been introduced and these have been incentivized by levying ₹ 20  per  tonne for inward and outward traffic for all commodities (excluding  Container  traffic)  vide  policy  issued  on 27.12.2018.
- viii. Freight  Advance Scheme issued on 09.03.2019 by giving stable tariff rate and assured loading.
- ix. Non Fare Revenue initiatives include revenue sharing arrangement between Indian Railways and RailTel for content on demand on passenger services.

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