Lok Sabha Question No. 3649 (UNSTARRED), answered on 2019-01-02
Subject: Revenue of Railways
Ministry: RAILWAYS
Asked by: VIJAYSINH MOHITE PATIL, JAYAKUMAR JAYAVARDHAN, SUPRIYA SADANAND SULE, HEENA VIJAYKUMAR GAVIT, DHANANJAY BHIMRAO MAHADIK, P.R. SUNDARAM, RAJEEV SHANKARRAO SATAV

(a)

## GOVERNMENT OF INDIA

## MINISTRY OF RAILWAYS

## LOK SABHA

## UNSTARRED QUESTION NO. 3649 TO BE ANSWERED ON 02-01-2019

## REVENUE OF RAILWAYS

## 3649.  SHRI MOHITE PATIL VIJAYSINH SHANKARRAO:

DR. J. JAYAVARDHAN:

SHRIMATI SUPRIYA SULE:

DR. HEENA VIJAYKUMAR GAVIT:

SHRI DHANANJAY MAHADIK:

SHRI P.R. SUNDARAM:

SHRI SATAV RAJEEV:

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

- (a) whether  the  net  surplus  of  Railways  after  meeting  the  revenue liabilities was  just Rs.4,913.00 crore  in  2016-17  compared  to Rs.10,505.97 crore in 2015-16 and if so, the zone-wise details of the net surplus thereof;
- (b) whether  it  is  true  that  even  though  no  dividend  was  paid  during 2016-17, the net surplus remained quite low compared to Rs.8,722 crore in 2015-16;
- (c) if  so,  the  reasons  for  low  net  surplus  despite  having  not  paid  the dividends in 2016-17;
- (d) whether the Government has conducted any assessment regarding reasons for low net surplus and if so, the details thereof; and
- (e) the zone-wise details of the steps taken/being taken by the Government  to  enhance  net  surplus  of  Railways,  year-wise  since 2014?

## ANSWER

## MINISTER OF STATE IN THE MINISTRY OF RAILWAYS

(SHRI RAJEN GOHAIN)

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

STATEMENT  REFERRED  TO  IN  REPLY  TO  PARTS  (a)  TO  (e)  OF UNSTARRED QUESTION NO. 3649 BY SHRI MOHITE PATIL VIJAYSINH SHANKARRAO, DR. J. JAYAVARDHAN, SHRIMATI SUPRIYA SULE, DR. HEENA  VIJAYKUMAR  GAVIT,  SHRI  DHANANJAY  MAHADIK,  SHRI P.R.  SUNDARAM  AND  SHRI  SATAV  RAJEEV  TO  BE  ANSWERED  IN LOK SABHA ON 02.01.2019 REGARDING REVENUE OF RAILWAYS (a): Yes, Madam. Zone-wise details of net surplus for the year 201516 and 2016-17 are appended. (b): Net surplus during 2015-16 was ₹ 10505.97 crore after meeting dividend liability of ₹ 8722.51 crore. No dividend was paid in 201617. (c)  to  (e):  The  dividend  waiver  allowed  to  Railways  in  2016-17 helped Railways to reduce its expenditure by a net amount of about ₹ 5,430.00  crore  after  offsetting  the  subsidy  receivable  from  the Ministry of Finance. Despite this relief, Railways' total expenditure excluding  dividend  grew  by ₹ 11,318.00  crore  in  2016-17  whereas Railways  total  receipts  excluding  subsidy  increased  by  a  mere ₹ 726.00 crore compared to corresponding figures in 2015-16. This resulted in a drop in net surplus of Railways in 2016-17. While steep rise in expenditure was on account of rise in staff cost pursuant to implementation of 7 th  CPC, meager increase in receipts was due to drop in other coaching and freight earnings from the year 2015-16 level. Steps  to  enhance  Indian  Railways'  net  surplus  comprise  of  a combination of initiatives aimed at maximizing revenue receipts and minimizing controllable revenue expenses. Earnings enhancing measures,  inter  alia,  include  targeting  progressively  higher  traffic throughput, periodic rationalization of fare and freight rates, effective and innovative marketing strategies to capture more and more traffic, creation of additional capacity and optimum utilization of the existing rail infrastructure including rolling stock, enhancement in productivity and efficiency, improvement of passenger interface and focus on increasing the share of non-fare revenue sources of Railways' earnings. Expenditure control measures include strict economy and austerity measures, improved man-power planning, better asset utilization, inventory management, optimizing fuel consumption etc. *****

APPENDIX  REFERRED  TO  IN  REPLY  TO  PART  (a)  OF  UNSTARRED QUESTION NO. 3649 BY SHRI MOHITE PATIL VIJAYSINH SHANKARRAO, DR. J. JAYAVARDHAN, SHRIMATI  SUPRIYA  SULE,    DR. HEENA  VIJAYKUMAR  GAVIT,    SHRI  DHANANJAY  MAHADIK  SHRI  P.R. SUNDARAM  AND  SHRI  SATAV  RAJEEV  TO  BE  ANSWERED  IN  LOK SABHA ON 02.01.2019 REGARDING REVENUE OF RAILWAYS

(a):  Zone-wise details of the surplus generated during 2015-16 and 2016-17 are as under:

(

₹

in crore)

| Zonal Railways      |   2015--16 |   2016-17 |
|---------------------|------------|-----------|
| Central             |      36.13 |   -650.88 |
| Eastern             |   -5330.66 |  -4755.41 |
| East Central        |     695.14 |   -192.15 |
| East Coast          |    6447.23 |   6925.51 |
| Northern            |   -4004.7  |  -3781.09 |
| North Central       |    5086.68 |   3935.68 |
| North Eastern       |   -3117.98 |  -3047.06 |
| North-east Frontier |   -3206.08 |  -1796.45 |
| North Western       |     499.26 |    377.22 |
| Southern            |   -2991.61 |  -3696.42 |
| South Central       |    2920.5  |   1940.81 |
| South Eastern       |    3400.6  |   3407.5  |
| South East Central  |    5887.49 |   5293.57 |
| South Western       |     114.92 |   -900.55 |
| Western             |    1152.01 |   -391.2  |
| West Central        |    3743.14 |   2567.21 |
| Metro               |    -282.32 |   -339.15 |
| PUs/Others          |    -543.78 |     15.86 |
| Total               |   10506    |   4913    |

*****