Lok Sabha Question No. 686 (UNSTARRED), answered on 2020-09-16
Subject: Loss of Revenue due to Lockdown
Ministry: RAILWAYS
Asked by: Imtiaz Jaleel Syed, C.N. Annadurai, Parvatagouda Chandanagouda Gaddigoudar, Rahul Ramesh Shewale, Dhanush M Kumar, Asaduddin Owaisi, Su Thirunavukkarasar, Vellalath Kochukrishnan Nair. Sreekandan

## GOVERNMENT OF INDIA MINISTRY OF RAILWAYS

## LOK SABHA UNSTARRED QUESTION NO.686

## TO BE ANSWERED ON 16.09.2020

## LOSS OF REVENUE DUE TO LOCKDOWN

## 686.   SHRI SYED IMTIAZ JALEEL:

SHRI C.N. ANNADURAI:

SHRI P.C. GADDIGOUDAR:

SHRI RAHUL RAMESH SHEWALE:

SHRI DHANUSH M. KUMAR:

SHRI ASADUDDIN OWAISI:

SHRI THIRUNAVUKKARASAR SU:

SHRI V. K. SREEKANDAN:

## Will the Minister of RAILWAYS be pleased to state:

- (a) the  number  of  days  during  lockdown  when  passenger  trains remained  suspended,  started  operation  during  unlock  period  and total  loss  suffered  by  Railways  during  the  period  and  the  total amount refunded by Railways to passengers due to cancellation of tickets;
- (b) whether running of less passenger trains has led to huge loss of revenue and if so, the estimated loss projected;
- (c) whether it is a fact that the Railways are considering to restore complete rail services in the country and if so, the details thereof;
- (d) whether freight revenue has also fallen sharply as compared to last year;
- (e) if  so,  the  details  thereof  and  whether  Railways  is  working towards simplifying its freight policy to boost freight revenue; and
- (f) the other steps taken by the Government to boost passenger and freight revenue?

## ANSWER

MINISTER OF RAILWAYS AND COMMERCE & INDUSTRY (SHRI PIYUSH GOYAL)

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

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STATEMENT  REFERRED  TO  IN  REPLY  TO  PARTS  (a)  TO  (f)  OF UNSTARRED  QUESTION  NO.  686  BY  SHRI  SYED  IMTIAZ  JALEEL, SHRI  C.N.  ANNADURAI,  SHRI  P.C.  GADDIGOUDAR,  SHRI  RAHUL RAMESH SHEWALE, SHRI DHANUSH M. KUMAR, SHRI ASADUDDIN OWAISI,  SHRI  THIRUNAVUKKARASAR SU, SHRI V.K.SREEKANDAN TO BE ANSWERED IN LOK SABHA ON 16.09.2020 REGARDING LOSS OF REVENUE DUE TO LOCKDOWN

(a) to (c) With a view to contain the spread of COVID-19 pandemic, Indian Railways discontinued the regular passenger train services w.e.f  23.03.2020.    Operation  of  passenger  train  services  after remaining suspended for 39 days, resumed  w.e.f 01.05.2020, with the introduction of Shramik  special  trains, in terms  of the guidelines issued by Government.

Keeping  in  view  the  suggestions  and  concerns  of  the  State Governments, Indian Railways have gradually resumed the operation of passenger trains,  as special train services, as under:-

- i. 15 pairs of Rajdhani specials with effect from 12.05.2020.
- ii. 100 pairs of Special trains with effect from 01.06.2020.
- iii. 43 pairs of special trains with effect from 12.09.2020.
- iv. 705  Suburban  services  (Central  Railway-355  &  Western Railway-350) with effect from 15.06.2020.

The  total  amount  of  refund  granted  upto  10.09.2020   due  to cancellation of tickets booked till 14 th  April, 2020 for journey period from  22.03.2020  to 12.08.2020  in regular time tabled trains, which were cancelled due to lockdown, was approximately ₹ 3371.50 crore.

Upto  the  end  of  August  2020,  the  number  of  originating passengers has been 1.27% of the corresponding period last year and freight loading has been 86.6% of the corresponding period last year.

Consequently the traffic revenue of Railway for the period, at ₹ 41,844.31  crore  has  declined  by  42.3%  over  the  corresponding period last year.

## (d) The freight revenue to end of August, 2020 and August, 2019 is as under:

|         | August, 2020   | August, 2019   |
|---------|----------------|----------------|
| Freight | ₹ 39648.02     | ₹ 46433.37     |
| Revenue | crores         | crores         |

- (e)  and  (f)    Yes,  Sir.  Indian  Railways  has  taken  a  large  number  of steps to simplify freight policy to boost freight revenue.

The  following  measures  have  been  taken  to  boost  freight  traffic during COVID-19 pandemic

- i) Exemption  from  levy of Demurrage,  Wharfage  and  other ancillary charges from 22.03.2020 to 17.05.2020, to facilitate freight customers and to provide logistics support for movement of essential goods.
2. ii) Extension of  the facility of e-RD and eT-RR in case of Freight Forwarders, Iron & Steel, Iron Ore and Salt traffic.
3. iii) Non levy of Haulage Charge for movement of empty containers and empty flats from 24.03.2020 till 08.05.2020.
4. iv) Distance restriction for Mini Rake of 600 km was increased for both inter zonal and intra zonal traffic to above 1500 km with certain terms and conditions w.e.f. 28.08.2020.
- v) Minimum number of wagons in BCNHL rake to be loaded  for train  load  benefit  has  been  reduced  from  57  to  42  wagons now, with a view to support loading of essential food items.
6. vi) 5%  discounts  on  Haulage  Charge  for  movement  of  loaded containers have been issued w.e.f. 04.08.2020 to 30.04.2021.
7. vii) The classification of 'Salt for Industrial use' has been reduced from  Class-120  to  Class-100A  w.e.f.  05.08.2020  till  further advice.
8. viii) 40% concession on freight rate of Fly Ash has been granted when transported in open & flat wagon w.e.f. 03.08.2020 with certain term and condition.
9. ix) Long  lead  concession:  Grand  15-20%  discount  on  NTR  for different  distance  leads  over  1400  km  on  Coal  &  Coke,  over 1600 Iron & Steel and over 700 km Iron ore.
- x) Re-introduction of short lead concession: To attract short lead traffic  to  railways,  graded  concession  has  been  provided  on base  freight  rate  all  commodities  except  Coal  &  Coke  ,  Iron ore , RMC and Military traffic

| Distance slab   | Freight concession   |
|-----------------|----------------------|
| 0-50 km         | 50%                  |
| 51-75 km        | 25%                  |
| 76-90 km        | 10%                  |
| 91-100 km       | Nil                  |

Round-Trip Traffic (RTT): Round trip traffic offers competitive prices for rakes loaded in both outward and return direction i.e. two way traffic. All commodities except iron ore, POL, container and  Low  rated  are permitted under this scheme.

- xi) Two  Point  Unloading  has  been  allowed  for  'Special  Freight Train  Operator  (SFTO)  under  Catergory-3'  and  'automobile traffic in railway-owned wagons.'
- xii) Automobile  Freight  Train  Operator  (AFTO)  rakes  have  been exempted from payment of stabling charges till 31.10.2020
- xiii) The  concept  of Empty  Return  Ratio (ERR) for allowing operation of rakes under General Purpose Wagon Investment Scheme (GPWIS) has been done away with. No freight will be charged on movement of empty rake in the circuit.  Party has been given the flexibility of choosing freight rebate 'with' or 'without'  Annual  cap.    JPO  formalised  to  streamline  the procedure of granting freight rebate.
- xiv) A  Liberalised  Special  Freight  Train  Operator  (LSFTO)  Policy has  been  launched  by  amalgamating  the  existing  SFTO  and Liberalised  Wagon  Investment  Schemes  for  Special  purpose and High Capacity Wagons.  There will be no registration fee and the maintenance of the wagons will be done by IR at its own cost.  No freight will be charged in empty direction.
- xv) The  Private  Freight  Terminal  (PFT)  Policy  has  been  revised with a view to make it more customer friendly.  Time lines and Nodal Officers for various stages prior to commissioning have been specified.  Besides, the staff cost has been rationalised and the application fee has been reduced from ₹ 10 lakh to ₹ 20 thousand only.
- xvi) The Private Siding Policy has been liberalised by removing the upper limit on number of co-users that may be permitted.
- xvii) Automobile  traffic  and  Parcel  traffic  opened  for  export  to Bangladesh.
- xviii) All Goods sheds, PFTs, Private Sidings opened for handling of Parcel Traffic.
- xix) Time table of Parcel Special trains with reduced composition have been introduced over different routes.  Till 31st August, 5279 Parcel Special trains (including 5126 time-tabled trains) have been run transporting approximately 3.16 lakh Tonnes of consignments.

With a view to enhance passenger earnings, the resumption of passenger train services has been undertaken by Indian Railways in a  phased manner based on the demand pattern subject to COVID19 situation and Government's directives. Periodical review of occupancy,  quota  utilization,  waiting  list  of  trains  is  done  and adjustments  are  made, wherever  required.   Besides,  measures  to enhance  passenger  earnings  is  a  continuous  and  an  on-going process.

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