Lok Sabha Question No. 517 (UNSTARRED), answered on 2021-12-01
Subject: Enhance Freight Earnings
Ministry: RAILWAYS
Asked by: Supriya Sadanand Sule, DNV Senthilkumar. S., Amol Ramsing Kolhe, Subhash Ramrao Bhamre, Sunil Dattatray Tatkare, Kuldeep Rai Sharma

## GOVERNMENT OF INDIA MINISTRY OF RAILWAYS

## LOK SABHA

## UNSTARRED QUESTION NO. 517 TO BE ANSWERED ON 01.12.2021

## ENHANCE FREIGHT EARNINGS

517.   SHRIMATI SUPRIYA SULE:

DR. DNV SENTHILKUMAR. S.:

DR. AMOL RAMSING KOLHE:

DR. SUBHASH RAMRAO BHAMRE:

SHRI SUNIL DATTATRAY TATKARE:

SHRI KULDEEP RAI SHARMA:

Will the Minister of RAILWAYS  be pleased to state:

- (a)  whether  the  Indian  Railways  earned  higher  revenue  in  freight  loading compared to previous year;
- (b)  if  so,  the  details  of  the  zone-wise  freight  earnings  and  the  factors responsible for higher freight earnings;
- (c) details of quantity of materials transported by the Railways on paid basis during each of the last three years;
- (d) the details of norms for fixing freight charges for transportation of goods; and
- (e)  the  Zone-wise and State-wise details of the steps taken/being taken by the Government to enhance freight earnings of Railways, year-wise since the last three years?

## ANSWER

MINISTER OF RAILWAYS, COMMUNICATIONS AND ELECTRONICS & INFORMATION TECHNOLOGY

(SHRI ASHWINI VAISHNAW)

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

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STATEMENT REFERRED  TO  IN  REPLY  TO  PARTS  (a)  TO  (e)  OF  UNSTARRED QUESTION NO. 517 BY SHRIMATI SUPRIYA SULE , DR. DNV SENTHILKUMAR. S., DR. AMOL RAMSING KOLHE, DR. SUBHASH RAMRAO BHAMRE, SHRI SUNIL DATTATRAY TATKARE AND SHRI KULDEEP RAI SHARMA TO BE ANSWERED IN LOK SABHA ON 01.12.2021 REGARDING ENHANCE FREIGHT EARNINGS

(a)& (b): Yes, Sir. Freight revenue has increased from ₹ 1,13,487.89 crore during 2019-20 to ₹ 1,17,231.82 crore during 2020-21. Zone-wise detail is as under:

| Zones              | FY 2019-20                 | FY 2019-20            | FY 2020-21                 | FY 2020-21            |
|--------------------|----------------------------|-----------------------|----------------------------|-----------------------|
|                    | Loading (in Million Tonne) | Revenue ( ₹ in crore) | Loading (in Million Tonne) | Revenue ( ₹ in crore) |
| Central            | 62.44                      | 7,267.54              | 62.02                      | 7,022.88              |
| Eastern            | 65.45                      | 4,047.25              | 67.86                      | 4,483.80              |
| East Central       | 149.50                     | 8,784.44              | 140.18                     | 9,415.00              |
| East Coast         | 200.93                     | 15,894.37             | 204.89                     | 16,913.89             |
| Northern           | 50.12                      | 6,768.42              | 59.08                      | 7,249.66              |
| North Central      | 14.75                      | 8,048.32              | 16.61                      | 7,577.66              |
| North Eastern      | 2.41                       | 1,460.10              | 2.65                       | 1,603.42              |
| Northeast Frontier | 8.79                       | 1,932.67              | 7.69                       | 2,190.66              |
| North Western      | 16.73                      | 4,016.91              | 22.23                      | 4,856.63              |
| Southern           | 31.75                      | 2,755.38              | 26.84                      | 2,604.04              |
| South Central      | 109.44                     | 9,905.79              | 95.99                      | 9,031.72              |
| South Eastern      | 171.96                     | 13,798.85             | 175.78                     | 13,855.63             |
| South East Central | 170.43                     | 12,459.32             | 186.51                     | 13,430.93             |
| South Western      | 36.76                      | 2,891.50              | 38.17                      | 3,061.72              |
| Western            | 77.06                      | 5,436.92              | 80.72                      | 5,949.81              |
| West Central       | 39.89                      | 8,020.11              | 43.72                      | 7,984.37              |
| TOTAL              | 1,208.41                   | 1,13,487.89           | 1,230.94                   | 1,17,231.82           |

The revenue has increased mainly due to increased loading.

(c): The details of quantity of material transported by the Railways during the last three years is as under:

(Tonnage  in million)

| Year    |   Quantity in million Tonne |
|---------|-----------------------------|
| 2018-19 |                     1221.48 |
| 2019-20 |                     1208.41 |
| 2020-21 |                     1230.94 |

(d): Rating of Indian Railways is based on certain cardinal principles which includes cost of services, value of service, competition from other mode of transportation,  what  the  traffic  can  bear.  Cost  of  service  determines  the minimum rates i.e. floor rate and what the traffic can bear determines the maximum rates i.e. ceiling rate.

(e): Due to stiff competition from alternative modes of transport, it was felt that Railway freight had out priced itself in certain sectors. To make the rail transportation attractive to its customers, various initiatives has been taken which  includes  tariff  rationalization,  classification  of  new  commodity  and expansion  of  freight  basket  through  containerization.  Some  of  major  steps taken last three years to generate additional revenue are as under:

- i. Long Term Tariff Contract with key freight customer.
- ii. Introduction of new delivery model of  Double Stack Dwarf Container.
- iii. Freight  All  Kind  (FAK)  rate  benefit  extended  to  notified  commodities loaded upto 50 Twenty Feet Equivalent Units  (TEUs) per rake which was earlier 30TEUs per rake.
- iv. 25% discount shall be granted for movement of empty container and empty flat wagon in container traffic.
- v. Guidelines on Station to Station Rates.
- vi. Customer friendly rationalization of weighment  policy has been issued.
- vii. Liberlized Automatic Freight Rebate Scheme in Empty Flow Directions.
- viii. Dispensation from mandatory (100%) weightment in case of loading of 'Standared Bags of uniform size' when transported in container.
- ix. Discount for loading of bagged consignment in open and flat wagons.
- x. Long lead concessions to Coal & Coke traffic for distance >1400KM is granted 20% concession, Iron or Steel traffic for distance >1600 KM is granted 20% concession and Iron Ore traffic for distance >700 KM and > 1500 KM is granted  15% and 20% concession respectively.
- xi. Short lead concession discount in freight at the rate of 50%, 25% and 10% is granted to the  traffic  booked upto 0-50KM, 51-75KM and 76-90 KM respectively, accept Coal and Coke, Iron Ore, Military Traffic, Rail Material Consignment and Container Traffic.

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