Lok Sabha Question No. 1934 (UNSTARRED), answered on 2016-03-09
Subject: Operational Cost of Railways
Ministry: RAILWAYS
Asked by: SHIVKUMAR CHANABASAPPA UDASI

## GOVERNMENT OF INDIA MINISTRY OF RAILWAYS

## LOK SABHA UNSTARRED QUESTION NO. 1934 TO BE ANSWERED ON 09.03.2016

## OPERATIONAL COST OF RAILWAYS

1934.   SHRI SHIVKUMAR UDASI :

Will the Minister of RAILWAYS be pleased to state :

- (a) whether the Railways has slashed its operational cost and working expenses and if so, the details thereof;
- (b) whether  the  operational  cost  of  Railways  is  higher  than  that  of  China  and America and if so, the details thereof, country-wise; and
- (c) the  steps  taken/proposed  to  be  taken  by  the  Government  to  reduce  the operational cost of railways?

## ANSWER

MINISTER OF STATE IN THE MINISTRY OF RAILWAYS

(SHRI MANOJ SINHA)

- (a) to (c) : A Statement is laid on the Table of the House.

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STATEMENT  REFERRED  TO  IN  REPLY  TO  PARTS  (a)  TO  (c)  OF  UNSTARRED QUESTION NO. 1934 BY SHRI SHIVKUMAR UDASI TO BE ANSWERED IN LOK SABHA ON 09.03.2016 REGARDING OPERATIONAL COST OF RAILWAYS

(a)  Yes,  Madam.  It  has  been  a  continuous  endeavour  on  part  of  the  Railways  to contain  and  economise  Ordinary  Working  Expenses(OWE)  of  which  the  operating expenses is also a part. Details of the reduction in OWE in the Revised Estimates 2015-16 over the Budget Estimates are as under:

( ` in crore)

| Items                                                                                           | Budget Estimates(BE)   | Revised Estimates(RE)   | Variation of RE over BE   |
|-------------------------------------------------------------------------------------------------|------------------------|-------------------------|---------------------------|
| Staff Cost                                                                                      | 58334                  | 57187                   | -1147                     |
| Fuel Cost                                                                                       | 29951                  | 26535                   | -3416                     |
| Stores Cost                                                                                     | 6337                   | 6690                    | 353                       |
| Lease Charges(Interest component)                                                               | 8616                   | 7903                    | -713                      |
| Miscellaneous Expenses(compensation claims, health & welfare services, contractual payments etc | 16172                  | 12375                   | -3797                     |
| OWE                                                                                             | 1,19,410               | 1,10,690                | -8,720                    |

- (b) Operational cost of other countries is not maintained in this Ministry.
- (c) Railways' endeavour to contain controllable heads of operating expenses is an ongoing  exercise.  However,  in  2015-16,  a  comprehensive  list  of  economy  and expenditure control measures was implemented. Some of the steps resorted to in this regard are:
-  Constant endeavour to effect economy in expenditure on controllable heads like travelling allowances, over-time allowance etc.;

-  Austerity  and  economy  measures  in  areas  such  as  hospitality, publicity, advertisements, inaugural ceremonies, seminars/workshops  and  contingent office expenses etc.
-  Implementation of guidelines on expenditure control and management circulated by Ministry of Finance.
-  Imposition of Spending Limits and Exchequer control
-  Rigorous monitoring of expenditure with regard to the monthly budget proportions.
-  Pre-check of indents and estimates.
-  Concurrent and internal audit functions.
-  Various  cost  cutting  measures  in  purchase  and  use  of  fuel,  both  electric  and diesel,  like  purchase  of  power  as  distribution  licensee,  purchase  of  power  at lower rates from various State Electricity Boards and other units, taking up of various energy conservation measures, fitment and working of auxiliary power units,  use  of  bio  diesel,  rationalization  of  fueling  pattern,  improvement  in  SFC and SEC, etc.
-  Manpower planning, benchmarking and yardsticks based on work studies
-  Post checks of pension payment by banks
-  Efficiency and productivity of assets

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