Lok Sabha Question No. 2042 (UNSTARRED), answered on 2016-03-09
Subject: Revenue Losses in Railways
Ministry: RAILWAYS
Asked by: KINJARAPU RAM MOHAN NAIDU, RODMAL NAGAR, HARISHCHANDRA DEORAM CHAVAN

## GOVERNMENT OF INDIA MINISTRY OF RAILWAYS

## LOK SABHA UNSTARRED QUESTION NO. 2042 TO BE ANSWERED ON 09.03.2016

## REVENUE LOSSES IN RAILWAYS

2042.  SHRI RAM MOHAN NAIDU KINJARAPU: SHRI NAGAR RODMAL: SHRI HARISHCHANDRA CHAVAN:

Will the Minister of RAILWAYS be pleased to state:

- (a) the  details  of  revenue  generated/loss  incurred  by  the  Railways during each of the last three years and the current year, till date;
- (b) the details of key areas/sectors incurring losses;
- (c) whether the Railways is contemplating to generate revenue from any other source instead of increasing railway fare to minimize financial losses; and
- (d) if  so,  the  details  thereof;  and  the  strategy  worked  out  by  the railways to bring drastic changes in the infrastructural facilities?

## ANSWER

## MINISTER OF STATE IN THE MINISTRY OF RAILWAYS

(SHRI MANOJ SINHA)

- (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. 2042 BY SHRI RAM MOHAN NAIDU KINJARAPU, SHRI NAGAR RODMAL AND SHRI HARISHCHANDRA CHAVAN TO BE ANSWERED IN LOK SABHA ON 09.03.2016 REGDING REVENUE LOSSES IN RAILWAYS.

(a):  The  details  of  revenue  earned  and  surplus  generated  by  the  Railways during each of the last three years and the current year is as under:

( ` in crore)

|                   |   2012-13 |   2013-14 |   2014-15 | 2015-16 (upto Jan.-16)         |
|-------------------|-----------|-----------|-----------|--------------------------------|
| Revenue earned    | 123901    |  139838   | 157072    | 134338.19                      |
| Surplus generated |   8266.25 |    3740.4 |   7664.94 | Surplus is calculated annually |

(b): Overall there is no deficit. Indian Railways carries out certain transport activities  which  are  uneconomic  in  nature  but  carried  out  in  the  larger interest of the society. The details of estimated losses incurred on account of these activities during the year 2015-16 are as under:-

( ` in crore)

|   S.No. | Details                                                                                     |   Amount |
|---------|---------------------------------------------------------------------------------------------|----------|
|       1 | Loss in Coaching services (Suburban & Non-suburban passenger traffic, parcel, luggage etc.) | 34030.7  |
|       2 | Loss on essential commodities below cost of operation                                       |    76.19 |
|       3 | Total (S.No. 1 and 2)                                                                       | 34106.9  |
|       4 | Deduct- Staff welfare and law & order costs                                                 |  9168.31 |
|       5 | Net Social Services Obligation                                                              | 24938.6  |

(c)&(d): Various measures  taken by Railways to augment revenue includes following:

Passenger Traffic:

- i.  Augmentation  of  ticket  selling  capacity  through  operation  of  automatic ticket vending machines (ATVM), Cash-Coin and Smart Card operated tickets vending  machines  (CoTVM),  Mobile  ticketing,  utilizing the services of ticketing agents like Jan Sadharan Ticket Booking Sewaks (JTVS), Station Ticket Booking Agents (STVA), Yatri Ticket Suvidha Kendra (YTSK) etc.

ii. Organising intensive ticket checking drives including fortress checks etc.

- iii. Augmentation of services by attachment of additional coaches, running of special trains during festivals and holidays, running of Suvidha trains etc. Goods Traffic:
- i. Liberalized Wagon Investments Scheme (LWIS).
- ii. Special Freight Train Operator (SFTO).
- iii. Automobile Freight Train Operator (AFTO).
- iv. Private Freight Terminal (PFT).

Apart from targeting higher revenues from its core business of passenger and freight, Railways are exploring alternate sources of revenue in non-core areas like commercial exploitation of surplus Railway land, land lease, right of  way  charges,  advertisement  of  Railways  premises/rolling  stock,  parcel business etc. As regards execution of infrastructural facilities, the strategy is  to  increase  the  pace  of  expansion  &  decongestion  of  the  network, increase  electrification,  implement  dedicated  freight  corridors  project  and seek private investment for rail connectivity and other projects.

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