Lok Sabha Question No. 1343 (UNSTARRED), answered on 2022-02-09
Subject: Revenue Generation by Railways
Ministry: RAILWAYS
Asked by: Nama Nageswara Rao

## GOVERNMENT OF INDIA MINISTRY OF RAILWAYS

## LOK SABHA UNSTARRED QUESTION NO.1343 TO BE ANSWERED ON 09.02.2022

## REVENUE GENERATION BY RAILWAYS

1343. SHRI NAMA NAGESWARA RAO:

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-wise;

(b):  whether the Railways has assessed the key areas 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 Parthership (PPP) model, to meet revenue gap and if so, the details thereof ?

## ANSWER

MINISTER OF RAILWAYS, COMMUNICATIONS AND ELECTRONICS & INFORMATION TECHNOLOGY

(SHRI ASHWINI VAISHNAW)

(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. 1343 BY SHRI NAMA NAGESWARA RAO TO BE ANSWERED IN LOK SABHA ON 09.02.2022 REGARDING REVENUE GENERATION BY 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   | Net Revenue(Total Receipts less Total Expenditure)   |
|--------------------------|------------------|------------------------------------------------------|
| 2018-19                  | 190,507.37       | 3,773.86                                             |
| 2019-20                  | 174,694.69       | 1,589.62@                                            |
| 2020-21                  | 140,783.55       | 2,547.48@                                            |
| 2021-22(Upto Dec.- 2021) | 134,371.70       | *                                                    |

@ Due to Covid related resources gap in 2019-20 and 2020-21, Railways appropriated ₹ 20708  crore  in  2019-20  and ₹ 523  crore  in  2020-21  to Pension Fund.

*  Net  Revenue  is  calculated  on  yearly  basis  after  closure  of  Annual Account.

(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    Obligations  on Indian  Railways.  The  details  of  Social  Service  Obligations  borne  by Railways for the last three years are as under:-

| Sr.No.   | Description                                                                            | 2018-19   | 2019-20   |   2020-21 |
|----------|----------------------------------------------------------------------------------------|-----------|-----------|-----------|
| (i)      | Loss on low rated commodities                                                          | 59.95     | 301.31    |   1371.14 |
| (ii)     | Concession in Passenger Fare                                                           | 1994.83   | 2058.61   |     37.94 |
| (iii)    | Losses on account of EMU Suburban Services                                             | 6753.56   | 6937.72   |   7798.6  |
| (iv)     | Losses on Un-economic Branch Lines                                                     | 2342.32   | 2396.82   |   2255.49 |
| (v)      | Losses on Strategic Lines                                                              | 1815.45   | 1604.27   |   1280.16 |
| (vi)     | Losses on Parcel, Luggage, Postal and Catering Services etc.                           | 5277.90   | 5793.31   |   6112.93 |
| (vii)    | Losses on account of pricing of fares below cost and other Social Services Obligations | 37673.03  | 45430.56  |  57187.2  |
| (viii)   | Total Losses on Coaching & Goods Services {(i) to(vii)}                                | 55917.04  | 64522.60  |  76043.5  |
| (ix)     | Total Social Service Obligation (viii)-(vi)                                            | 50639.14  | 58729.29  |  69930.6  |
| (x)      | Deduct Staff Welfare and Law & Order Costs                                             | 12325.55  | 13187.37  |  13278.8  |
| (xi)     | Deduct loss on commodities (not under SSO)                                             | -         | -         |   1801.21 |
| (xii)    | Net Social Service Obligation[ (ix)-(x+xi) ]                                           | 38313.59  | 45541.92  |  54850.6  |

(c):  Keeping  in  view  the  continuing  adverse  impact  of  the  COVID-19 pandemic  on  passenger  services,  Railways  have  scaled  down  their total traffic receipts target in 2021-22 from Budget Estimates level of ₹ 217010  crore to ₹ 201650  crore in Revised Estimates, with a compound annual growth rate (CAGR) of 7.5% over the year 2019-20. This comprises Passenger Revenue of ₹ 44375 crore, Freight Revenue of ₹ 145275crore, Other Coaching Revenue of ₹ 5000 crore and Sundry Other  Revenue  of ₹ 7000  crore.  Expecting  the  return  of  Passenger Booking to the pre-Covid level with usual growth and setting a higher loading target, Railways' total traffic receipt target in Budget Estimates 2022-23 has been kept at ₹ 239500 crore with 18.8% growth over  Revised  Estimates  2021-22.  This  comprises  Passenger  Revenue target  of ₹ 58500  crore,  Freight  Revenue  of ₹ 165000  crore,  Other Coaching  Revenue  of ₹ 6000  crore  and  Sundry  Other  Revenue  of 10000 crore.

- ₹ (d):New business models have been developed to attract new traffic streams,  enhance  loading  and  fill  Revenue  gap,  which    include  the following: (i)  Ministry  of  Railways  is  exploring  various  possibilities  to  develop Railway  Stations  under  different  models including Public Private Partnership (PPP) model amongst others. (ii) A policy on development of goods-sheds had been launched, which is aimed at augmenting terminal capacity through private participation by  allowing  setting  up  new  goods  shed  facilities  and  developing existing goods-sheds. Approximately 252 locations have been identified by Zonal Railways for development under this policy. (iii)  A  policy  for  development  of  'Gati  Shakti  Multi  Model  Cargo Terminal (GCT) ' has recently  been launched wherein common user facilities of Cargo Terminals are to be developed with the investment of private players either on Private land or on Railway land. (iv) Policies for attracting private investment in wagons viz Automobile Freight  Train  Operator  (AFTO)  ,  Liberalized  Special  Freight  Train Operator  (LSFTO)  and  General  Purpose  Wagon  Investment  Scheme
- (GPWIS) are also in place.
- (v) Ministry of Railways has formulated a Participative Policy,2012 to encourage investment in developing the rail connectivity by associating strategic partners and other investors. The policy defines five  Participative  models  viz.  Non-Government  Railway  (NGR),  Joint

Venture  (JV),  Customer  funded  model,  Build  Operate  Transfer  (BOT) and BOT-annuity models.

(vi)  Till    now,  14  connectivity    projects  of ₹ 9234  crore  have  been completed through Participative Scheme. 10 projects of ₹ 19417 crore are under implementation including coal connectivity and port connectivity projects.

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