Lok Sabha Question No. 5713 (UNSTARRED), answered on 2022-04-06
Subject: Low Freight Share of Railways
Ministry: RAILWAYS
Asked by: Pocha Brahmananda Reddy, Kuruva Gorantla Madhav

## GOVERNMENT OF INDIA MINISTRY OF RAILWAYS

## LOK SABHA UNSTARRED QUESTION NO.5713 TO BE ANSWERED ON 06.04.2022

## LOW FREIGHT SHARE OF RAILWAYS

## 5713. SHRI POCHA BRAHMANANDA REDDY: SHRI KURUVA GORANTLA MADHAV:

Will the Minister of RAILWAYS be pleased to state:

- (a) the  details  of  the  share  of  Railways  in  freight  over  the  past  five years;
- (b) whether the Government has undertaken or sanctioned any study to understand the reasons for the low freight share of Railways as compared to roads and to redress the same;
- (c) if so, the details thereof and if not, reasons therefor;
- (d)    whether  the  Government  has  considered  to  provide  a  distancebased concession to exporters located far away from ports;
- (e)     if so, the details thereof and if not, reasons therefor;
- (f)        whether  the  Government  has  any  timeline  for  operationalising  all sections of the Dedicated Freight Corridor;
- (g)     if so, the details thereof and if not, reasons therefor;
- (h)    whether  the  Government  has  explored  monetisation  of  railway terminals, stations, etc. to ease the burden of cross-subsidization; and
- (i)     if so, the details thereof along with the reasons including details of any  alternative  measures  adopted  to  offset  the  burden  of  crosssubsidization?

## ANSWER

MINISTER OF RAILWAYS, COMMUNIACTIONS AND ELECTRONICS & INFORMATION TECHNOLOGY

(SHRI ASHWINI VAISHNAW)

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

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STATEMENT  REFERRED  TO  IN  REPLY  TO  PARTS  (a)  TO  (i)  OF UNSTARRED  QUESTION  NO.  5713  BY  SHRI  POCHA  BRAHMANANDA REDDY AND SHRI KURUVA GORANTLA MADHAV TO BE ANSWERED IN LOK  SABHA  ON  06.04.2022  REGARDING  LOW  FREIGHT  SHARE  OF RAILWAYS

(a)  to  (c):  Regular  compilation  of  rail  and  road  shares  in  total  freight movement  is  not  done.  Last  time  these  were  compiled  by  Rail  India Technical and Economic Service Limited (RITES) as part of the National Rail  Plan  study,  according  to  which  the  modal  share  of  Railways  was around 26% in 2017-18. Indian Railways have prepared a National Rail Plan  (NRP)  for  India  -  2030.  The  objective  of  the  plan  is  to  create capacity  ahead  of  demand,  which  in  turn,  would  also  cater  to  future growth in demand right up to 2050 and also increase the modal share of Railways to 45% in freight traffic and to continue to sustain it.

(d)  &  (e):  Indian  Railways  have  provided  following  distance  based concessions which can be availed by rail users, including exporters:

-  To attract short lead traffic distance based short lead concession has been granted for traffic upto 100 Km at the rate of 50%, 25% and 10% for traffic booked upto 0-50 KM, 51-75 KM and 76-90 KM respectively except for Coal & coke, Military Traffic, Rail Material Consignments  (RMC),  Container  traffic  and  Iron  Ore  with  effect from 01.07.2020 and valid upto 30.06.2022.
-  For  long  lead  traffic  of  Coal  &  Coke,  20%  concession  has  been granted for distance more  than 1400KM  from  01.07.2020  to 31.12.2021.
-  For  Iron  Ore  traffic,  20%  concession  has  been  granted  for  more than 1600KM, and for Iron or Steel traffic, 15% concession is

- granted  for  distance  more  than  700KM  and  20%  concession  is granted  for  more  than  1500  Km  from  01.07.2020  and  valid  upto 30.06.2022.
-  The  long  lead  concession  has  been  granted  to  Clinker  traffic  for distance 1000 km & more subject to certain terms and conditions w.e.f. 07.12.2020 and valid upto 31.03.2022.
-  Distance  based  graded  concession  at  25%  for  transportation  of limestone  for  distance  of  1500  km  &  more  is  also  granted  under certain terms and conditions w.e.f 01.04.2021 valid upto 31.03.2022
- (f) & (g): The Eastern Dedicated Freight Corridor (EDFC) from Ludhiana to Sonnagar  (1337  KM)  and  Western  Dedicated  Freight  Corridor  (WDFC) from  Jawaharlal  Nehru  Port  Terminal  (JNPT)  to  Dadri  (1506  Kms.)  are targeted to be completed by June 2022. Till now, a total length of 1110 km  out  of  2843  km  on  Eastern  and  Western  DFC  (EDFC  &  WDFC)  is complete. The freight movement on Khurja- Bhaupur section of EDFC and Rewari - Palanpur section of WDFC is in operation.
- (h)  & (i):  Endeavour of asset monetization is not directly related to the easing  of  the  burden  of  cross-subsidization.  However,  as  part  of  asset monetization process, Indian Railways have identified 29 stations where monetization process through EPC or PPP mode shall be initiated during 2022-23.  To  monetize  the  Goods  sheds,  the  Ministry  of  Railways  have identified  more  than  200  locations  so  far,  for  development  through Private Investment.

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