Lok Sabha Question No. 5200 (UNSTARRED), answered on 2019-07-24
Subject: Operating Efficiency of Railways
Ministry: RAILWAYS
Asked by: Sudheer Gupta, Sanjay Sadashivrao Mandlik, Gajanan Chandrakant Kirtikar, Bidyut Baran Mahato

## GOVERNMENT OF INDIA MINISTRY OF RAILWAYS

## LOK SABHA UNSTARRED QUESTION NO. 5200 TO BE ANSWERED ON 24.07.2019

## OPERATING EFFICIENCY OF RAILWAYS

5200.  SHRI SUDHEER GUPTA:

SHRI SANJAY SADASHIV RAO MANDLIK:

SHRI GAJANAN KIRTIKAR:

SHRI BIDYUT BARAN MAHATO:

Will the Minister of RAILWAYS be pleased to state:

- (a) whether  Railways  is  not  able  to  meet  its  operating  cost  of passengers and other coaching services;
- (b) if so, the details thereof and the reasons therefor, zone/State-wise;
- (c) the details of the losses of Railways during each of the last three years and the current year on account of passengers fare;
- (d) whether  the profit earned from freight services is used to compensate the loss incurred on passenger and coaching services and if so, the details thereof; and
- (e) the other corrective measures taken/being taken by the Railways to make it a profitable entity?

## ANSWER

MINISTER OF RAILWAYS AND COMMERCE & INDUSTRY

(SHRI PIYUSH GOYAL)

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

*****

STATEMENT REFERRED TO IN REPLY TO PART (a) TO (e) OF UNSTARRED QUESTION NO. 5200 BY SHRI SUDHEER GUPTA, SHRI SANJAY SADASHIV RAO  MANDLIK,  SHRI  GAJANAN  KIRTIKAR  AND  SHRI  BIDYUT  BARAN MAHATO TO BE ANSWERED IN LOK SABHA ON 24.07.2019 REGARDING OPERATING EFFICIENCY OF RAILWAYS

(a) & (b): Indian Railways (IR) carry out certain transport activities which are uneconomic in nature and are carried out in the larger interest of the country. Zone-wise details of operating cost of coaching services for the year 2017-18 are as under:

|   S. No. | Zonal Railways     | Operating cost ( in crore)   |
|----------|--------------------|------------------------------|
|        1 | Central            | 10,149                       |
|        2 | Eastern            | 8,788                        |
|        3 | East Central       | 6,187                        |
|        4 | East Coast         | 2,503                        |
|        5 | Northern           | 15,394                       |
|        6 | North Central      | 5,825                        |
|        7 | North Eastern      | 5,107                        |
|        8 | Northeast Frontier | 5,052                        |
|        9 | North Western      | 4,634                        |
|       10 | Southern           | 9,937                        |
|       11 | South Central      | 7,699                        |
|       12 | South Eastern      | 4,189                        |
|       13 | South East Central | 2,106                        |
|       14 | South Western      | 3,689                        |
|       15 | Western            | 8,464                        |
|       16 | West Central       | 4,353                        |
|       17 | Metro              | 584                          |

State-wise data are not maintained.

## (c)  The  details  of  the  losses  of  Railways  during  each  of  the  last  three years on account of pricing of  passenger fares below cost of operations are as under:

| Year                       | Losses ( in crore)   |
|----------------------------|----------------------|
| 2015-16                    | 22,262               |
| 2016-17                    | 25,561               |
| 2017-18 (latest available) | 31,128               |

Indian Railways being the major transport carrier of the country bears a  Social  Service  Obligation  towards  its  countrymen.  It  is  committed  to offer  affordable  transportation  solution  to  the  poorest  section  of  the society.  This  essential  feature  of  IR  contributes  not  only  to  promoting economic  and  industrial  growth  but  also  in  providing  certain  services below their cost of operation in the interest of common men.

- (d)  The  tariff  policy  on  Indian  Railway  has  traditionally  been  one  of restraint  with  regard  to  increase  in  passenger  fares  and  moderation  in case  of  periodic  increases  in  freight  rates.  Conventionally,  the  losses incurred in passenger and other coaching services have been compensated  through  a  process  of  'cross-subsidization'  from  revenues generated in the freight segment.
- (e) The  other  measures  taken/being  taken  by  Railways  which  increase the revenue from passenger traffic:
- (i)  The  concept  of  Premium  Tatkal  Quota  has  been  introduced  w.e.f. 01.10.2014  on  dynamic  fare.  Dynamic  earning  from  this  scheme  for 2018-19 is approximately 603 Crore.
- (ii)  The  concept  of  special  trains  on  special  charges  (10%  higher  for second  class  reserved  and  30%  higher  for  other  classes)  have  been introduced on higher fares from May 2015. For unreserved second class fare  is  equivalent  to  fare  of  second  class  (unreserved)  for  superfast Mail/Express trains. Additional earnings have been generated. (iii) From  01.07.2015 the concept of Suvidha specials have been introduced on variable fare structures. For unreserved second class fare is equivalent to fare of second class (unreserved) for superfast Mail/Express trains. Additonal earnings have been generated. (iv)  Rationalization of tatkal fare scheme with effect from  25.12.2015. (v)  Flexi  fare  scheme  has  been  introduced  in  Rajdhani,  Shatabdi  and Duronto trains with effect from 09.09.2016. Additional flexi fare earnings upto November 2018 is 1836 crore. (vi)  10% discount on vacant berths/seats after preparation of first chart is  granted  in  all  reserved  trains  with  effect  from  01.01.2017.  Earnings from  booking  after  preparation  of  first  chart  has  been  increased  from 769 crore during 2016-17 to 1024 crore during 2017-18. (vii)  Discounted  fare  in  Shatabdi  trains  over  4  sections  viz.  BengaluruMysuru,  Mysuru-Bengaluru,  Ahmedabad-Vadodara  and  Jalpaiguri-Malda Town sections. Both occupancy and earnings have been increased. (viii)  To  facilitate  second  class  passengers,  sleeper  class  coaches running  underutilised  have  been  de-reserved  over  certain  sections  as second class unreserved on second class (unreserved) fare. No separate

data is maintained as regards additional earnings.

- (ix)  After successful implementation in 5 pairs of trains over BengaluruAC-3tier fare. Both occupancy and earnings have been increased.
- Mysuru-Bengaluru  section,  the  power  has  been  delegated  to  Zonal Railways  to  declare  AC-3tier  coaches  (underutilised  over  particular section) as AC Chair Car on AC Chair Car fare, which is lower than the (x)  Flexi Fare scheme has been rationalized w.e.f. 15.03.2019 as under:(I) Discontinuation of Flexi Fare scheme (Rajdhani, Shatabdi and Duronto Express trains) from 15 trains fully and from 32 trains during pre defined lean period of 3 months (February, March & August). Out of these, during pre-defined lean period, Flexi Fare has been withdrawn from 5 Rajdhani Express trains. (II)  Maximum  cap  of  Flexi  Fare  scheme  has  been  reduced  to  1.4  times from 1.5 times earlier in all Flexi Fare applicable classes. (III)  In  case  of  flexi  fare  trains  i.e.,  Rajdhani,  Shatabdi,  Duronto  train  and Humsafar  trains  where  class-wise  occupancy  is  less  than  60%  four  days

prior to scheduled departure of train graded discount is given as under:-

| Occupancy   | Discount         |
|-------------|------------------|
| Up to 70%   | 20% on last fare |
| 70 to 80%   | 10% on last fare |
| Above 80%   | Nil              |

This  shall  however  be  subject  to  charging  of  minimum  basic  fare  and other applicable supplementary charges.

*****