Lok Sabha Question No. 683 (UNSTARRED), answered on 2016-04-27
Subject: Shortfall in Revenue
Ministry: RAILWAYS
Asked by: SANJAY SHAMRAO DHOTRE, BHARTRUHARI MAHTAB, MALLIKARJUN  KHARGE

## GOVERNMENT OF INDIA MINISTRY OF RAILWAYS

## LOK SABHA UNSTARRED QUESTION NO.683

## TO BE ANSWERED ON 27.04.2016

## SHORTFALL IN REVENUE

683.  SHRI SANJAY DHOTRE:

SHRI BHARTRUHARI MAHTAB:

SHRI MALLIKARJUN KHARGE:

Will the Minister of RAILWAYS be pleased to state:

- (a) whether there is a shortfall in revenue earned vis-à-vis its target by the  Railways  from  passengers  and  freight  during  each  of  the  last three years and the current year and if so, the details thereof, zonewise;
- (b) whether  Railways  has  incurred  huge  losses  on  account  of  under utilisation of Railway Cargo Services in the country  during each of the  last  three  years  and  the  current  year  and  if  so,  the  details thereof, zone-wise and the reasons therefor;
- (c) the  losses  incurred/profit  earned  by  the  Railways  during  the  said period;
- (d) the  reasons  for  the  fall  of  market  share  of  the  Railways  in  the freight market; and
- (e) whether the Government proposes to improve the share of Indian Railways  in  the  freight  market  and  make  it  more  attractive  for business  and  if  so,  the  details  thereof  and  if  not,  the  reasons therefor?

## ANSWER

## MINISTER OF STATE IN THE MINISTRY OF RAILWAYS

(SHRI MANOJ SINHA)

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

*****

STATEMENT  REFERRED  TO  IN  REPLY  TO  PARTS  (a)  TO  (e)  OF UNSTARRED  QUESTION  NO.683  BY  SHRI  SANJAY  DHOTRE,  SHRI BHARTRUHARI AND SHRI MALLIKARJUN KHARGE TO BE ANSWERED IN LOK SABHA ON 27.04.2016 REGARDING SHORTFALL IN REVENUE

- (a): The details of shortfall in revenue earned vis-à-vis its target by the Railways during last three years zone-wise are appended  in Appendix-I & II. Current financial year 2016-17 has just begun w.e.f. 01.04.2016 and details are unavailable.
- (b): During the last three years, Railways earnings has increased year on  year  as  indicated  in  Appendix-II.  Under  utilization  of  freight services  is  reflected  in  the  empty  running  of  trains.  In  2012-13, overall empty running ratio was 34.70% which slightly deteriorated in  2013-14  when  this  ratio  was  34.90%  and  the  ratio  improved  in 2014-15 at 34.80%. Railway zone-wise details of Empty Return Ratio for 2012-13 to 2014-15 is appended in Appendix-III.
- (c): The surplus generated by Railways during the last three years is as under:

( ` in crore)

| Year             |   Amount |
|------------------|----------|
| 2013-14          |  3740.4  |
| 2014-15          |  7664.94 |
| 2015-16 (approx) | 10869.3  |

- (d):  The  market  share  of  Indian  Railways  in  freight  market  has  been impacted due to a number of factors including hike in freight rates and growth and competition from alternative modes of transportation.
- (e):  The  Government  is  committed  to  improve  the  share  of  Indian Railways in the freight  market and this  is  reflected  in  the  Budget

announcement made during the current year, which contemplates review of tariff policy to evolve a competitive rate structure vis a vis  other  modes,  permit  multi-point  loading/unloading  and  apply differentiated tariffs to increase utilization of alternate routes. The possibility  of  signing  long  term  tariff  contracts  with  key  freight customers using pre-determined price escalation principles will be explored  which  would  provide  predictability  of  revenues  to  Indian Railways and of costs to the customers. It has also been announced that  the  freight  basket  of  Indian  Railways  will  be  expanded  and container  sector  will  be  opened  to  all  traffic  (barring  Coal  & specified Mineral Ores). All existing terminals/goods sheds will be given access to container traffic.

The Government has initiated various steps to increase the share of Rail in transportation market. Some of these are as under:

- (i) All covered wagons have been permitted for booking of traffic to two-point/multi-point combination and mini rake.
- (ii) Distance restriction applicable for mini rake has been relaxed from 400 to 600 kms.
- (iii) In  order  to  provide  economical  and  reliable  transportation solution  to  short  lead  traffic,  a  revised  scheme  under  MerryGo-Round (MGR) system has been introduced.
- (iv) Port Congestion Charge leviable @ 10% on all traffic originating  from  Port  has  been  discontinued  from  13.04.2016 up to 31.03.2017.
- (v) Automatic Freight Rebate Scheme for traffic loaded in empty flow direction has been extended.
- (vi) In addition, the reforms initiated by the government in sectors such  as  Coal,  Power,  Steel  and  other  industries  is  likely  to
- give a push to activity in these industries resulting in increased originating traffic tonnage.
- (vii) Further, in order to increase the market share of Railways in freight transportation and to improve the efficiency of Freight Traffic  specially  for  non-conventional  traffic  in  high  capacity and  special  purpose  wagons,  the  following  schemes  have been introduced by Indian Railways for procurement of rakes for transportation of freight traffic by inviting private investment through Public Private Partnership (PPP):
- (a) Liberalized Wagon Investment Scheme- So far, approval for procurement  of  59  rakes  by  15  firms,  has  been  accorded  to various  customers  by  Ministry  of  Railways.  Out  of  which,  30 rakes  have  been  procured/inducted  and  are  running  on  the system.
- (b) Wagon Leasing SchemeTwo companies have been registered  as  Wagon  Leasing  Companies  under  the  policy. They have procured 12 rakes of BLC wagons and approval for 4 new BLC and 2 BTAP rakes have been accorded.
- (c) Special Freight Train Operators Scheme- So far, 3 rakes of BRNA wagons have been inducted and running on IR system.
- (d) Automobile  Freight  Train  Operators  Scheme-  License  has been given to Two companies to work as AFTO and they have procured 8 rakes till date.
- (viii) Private Freight Terminal: To facilitate rapid development of a network of freight terminals with private investment to provide efficient and cost effective logistics services with warehousing solution to end users, a scheme namely Private Freight  Terminal  (PFT)  has  been  introduced.  So  far,  approval

has been given for PFT at 75 locations, out of which 34 PFTs have been notified/commissioned. *****

## APPENDIX-I  REFERRED  TO  IN  REPLY  TO  PART  (a)  OF  UNSTARRED  QUESTION  NO.683  BY  SHRI  SANJAY DHOTRE, SHRI BHARTRUHARI MAHATAB AND SHRI MALLIKARJUN KHARGE TO BE ANSWERED IN LOK SABHA ON 27.04.2016 REGARDING SHORTFALL IN REVENUE

( ` in crore)

|                    | Passenger (2013-14)   | Passenger (2013-14)   | Passenger (2013-14)       | Passenger (2014-15)   | Passenger (2014-15)   | Passenger (2014-15)       | Passenger (2015-16)   | Passenger (2015-16)   | Passenger (2015-16)       |
|--------------------|-----------------------|-----------------------|---------------------------|-----------------------|-----------------------|---------------------------|-----------------------|-----------------------|---------------------------|
|                    | Target                | Actual                | Excess (+)/ Shortfall (-) | Target                | Actual                | Excess (+)/ Shortfall (-) | Target                | Actual                | Excess (+)/ Shortfall (-) |
| Central            | 4343.00               | 4183.54               | -159.46                   | 5016.00               | 4788.99               | -227.01                   | 5216.00               | 4932.54               | -283.46                   |
| Eastern            | 1813.00               | 1762.03               | -50.97                    | 2024.60               | 1999.12               | -25.48                    | 2086.44               | 2100.68               | 14.24                     |
| East Central       | 1926.00               | 1846.01               | -79.99                    | 2086.50               | 2080.31               | -6.19                     | 2189.37               | 2219.40               | 30.03                     |
| East Coast         | 1039.00               | 981.60                | -57.40                    | 1152.50               | 1154.67               | 2.17                      | 1269.39               | 1242.78               | -26.61                    |
| Northern           | 4721.00               | 4741.46               | 20.46                     | 5797.00               | 5646.61               | -150.39                   | 6643.09               | 5889.04               | -754.05                   |
| North Central      | 3610.00               | 3478.91               | -131.09                   | 4056.20               | 4024.54               | -31.66                    | 4051.46               | 4324.94               | 273.48                    |
| North Eastern      | 1234.00               | 1182.96               | -51.04                    | 1383.40               | 1374.51               | -8.89                     | 1491.30               | 1473.34               | -17.96                    |
| Northeast Frontier | 951.00                | 904.96                | -46.04                    | 1021.00               | 1023.03               | 2.03                      | 1000.00               | 1010.22               | 10.22                     |
| North Western      | 1473.00               | 1431.85               | -41.15                    | 1720.00               | 1656.73               | -63.27                    | 1800.24               | 1787.28               | -12.96                    |
| Southern           | 3376.90               | 3290.64               | -86.26                    | 3838.95               | 3719.98               | -118.97                   | 3953.72               | 3864.18               | -89.54                    |
| South Central      | 3574.00               | 3444.14               | -129.86                   | 4052.00               | 4011.09               | -40.91                    | 4265.00               | 4275.56               | 10.56                     |
| South Eastern      | 1228.00               | 1183.35               | -44.65                    | 1367.50               | 1369.41               | 1.91                      | 1502.94               | 1456.56               | -46.38                    |
| South East Central | 913.00                | 870.13                | -42.87                    | 1007.35               | 993.58                | -13.77                    | 1013.63               | 1033.28               | 19.65                     |
| South Western      | 1184.00               | 1168.81               | -15.19                    | 1390.00               | 1339.38               | -50.62                    | 1500.00               | 1373.61               | -126.39                   |
| Western            | 3621.00               | 3600.89               | -20.11                    | 4142.00               | 4143.48               | 1.48                      | 4358.72               | 4227.33               | -131.39                   |
| West Central       | 2368.10               | 2330.53               | -37.57                    | 2775.00               | 2692.56               | -82.44                    | 2850.00               | 2854.67               | 4.67                      |
| Metro              | 125.00                | 130.44                | 5.44                      | 172.00                | 171.62                | -0.38                     | 184.85                | 179.61                | -5.24                     |
| TOTAL              | 37500.00              | 36532.25              | -967.75                   | 43002.00              | 42189.61              | -812.39                   | 45376.15              | 44245.02              | -1131.13                  |

## APPENDIX-II  REFERRED  TO  IN  REPLY  TO  PART  (a)  OF  UNSTARRED  QUESTION  NO.683  BY  SHRI  SANJAY DHOTRE, SHRI BHARTRUHARI MAHATAB AND SHRI MALLIKARJUN KHARGE TO BE ANSWERED IN LOK SABHA ON 27.04.2016 REGARDING SHORTFALL IN REVENUE

( ` in crore)

|                    | Freight (2013-14)   | Freight (2013-14)   | Freight (2013-14)          | Freight (2014-15)   | Freight (2014-15)   | Freight (2014-15)          | Freight (2015-16)   | Freight (2015-16)   | Freight (2015-16)          |
|--------------------|---------------------|---------------------|----------------------------|---------------------|---------------------|----------------------------|---------------------|---------------------|----------------------------|
|                    | Target              | Actual              | Excess (+)/ Shortfall (- ) | Target              | Actual              | Excess (+)/ Shortfall (- ) | Target              | Actual              | Excess (+)/ Shortfall (- ) |
| Central            | 6472.00             | 6460.10             | -11.90                     | 7186.10             | 6825.94             | -360.16                    | 7599.00             | 7323.44             | -275.56                    |
| Eastern            | 3180.00             | 3334.96             | 154.96                     | 3832.40             | 3622.07             | -210.33                    | 3458.34             | 3658.66             | 200.32                     |
| East Central       | 6838.69             | 6736.79             | -101.90                    | 7600.81             | 7771.60             | 170.79                     | 8786.46             | 8487.17             | -299.29                    |
| East Coast         | 11106.39            | 11197.78            | 91.39                      | 11717.37            | 11379.40            | -337.97                    | 12381.86            | 12269.38            | -112.48                    |
| Northern           | 7217.00             | 6838.91             | -378.09                    | 7491.61             | 7313.74             | -177.87                    | 7186.49             | 7170.28             | -16.21                     |
| North Central      | 7937.44             | 7927.37             | -10.07                     | 8641.34             | 8782.42             | 141.08                     | 9880.61             | 9279.39             | -601.22                    |
| North Eastern      | 1075.27             | 1093.67             | 18.40                      | 1275.32             | 1322.40             | 47.08                      | 1289.34             | 1274.24             | -15.10                     |
| Northeast Frontier | 1663.00             | 1672.42             | 9.42                       | 1904.32             | 1871.88             | -32.44                     | 1650.00             | 1902.23             | 252.23                     |
| North Western      | 4203.00             | 3972.33             | -230.67                    | 5000.00             | 4914.57             | -85.43                     | 5381.24             | 4703.31             | -677.93                    |
| Southern           | 2782.00             | 2797.28             | 15.28                      | 3151.17             | 3045.72             | -105.45                    | 2857.04             | 2831.80             | -25.24                     |
| South Central      | 8865.00             | 9092.42             | 227.42                     | 11076.00            | 10778.47            | -297.53                    | 10605.00            | 10118.43            | -486.57                    |
| South Eastern      | 8878.00             | 8865.94             | -12.06                     | 9684.39             | 9611.12             | -73.27                     | 10448.57            | 10583.41            | 134.84                     |
| South East Central | 8315.00             | 8274.47             | -40.53                     | 9591.85             | 9613.06             | 21.21                      | 11124.77            | 10993.22            | -131.55                    |
| South Western      | 2317.00             | 2418.33             | 101.33                     | 2856.00             | 3243.40             | 387.40                     | 2960.00             | 3122.07             | 162.07                     |
| Western            | 7126.62             | 7021.32             | -105.30                    | 8144.92             | 8146.59             | 1.67                       | 8069.00             | 7503.51             | -565.49                    |
| West Central       | 6023.59             | 6201.54             | 177.95                     | 7773.40             | 7548.96             | -224.44                    | 8175.00             | 7776.29             | -398.71                    |
| Metro              | 0.00                | 0.00                | 0.00                       | 0.00                | 0.00                | 0.00                       | 0.00                | 0.00                | 0.00                       |
| TOTAL              | 94000.00            | 93905.63            | -94.37                     | 106927.00           | 105791.34           | -1135.66                   | 111852.72           | 108996.83           | -2855.89                   |

*****

APPENDIX-III  REFERRED  TO  IN  REPLY  TO  PART  (b)  OF  UNSTARRED QUESTION  NO.683  BY  SHRI  SANJAY  DHOTRE,  SHRI  BHARTRUHARI MAHATAB AND SHRI MALLIKARJUN KHARGE TO BE ANSWERED IN LOK SABHA ON 27.04.2016 REGARDING SHORTFALL IN REVENUE

## Railway Zone-wise  details of Empty Return Ratio (ERR)

( ` in Crore)

|                            |   2012-13 |   2013-14 |   2014-15 |
|----------------------------|-----------|-----------|-----------|
| Central Railway            |      27.9 |      27.1 |      29.8 |
| Eastern Railway            |      32.3 |      32.4 |      32.4 |
| East Central Railway       |      41.8 |      41.8 |      40.7 |
| East Coast Railway         |      34.1 |      36.4 |      34.9 |
| Northern Railway           |      37.9 |      37.2 |      37.9 |
| North Central Railway      |      34.6 |      34.9 |      33.8 |
| North Eastern Railway      |      39.6 |      43.8 |      45.6 |
| Northeast Frontier Railway |      41.1 |      42.3 |      38   |
| North Western Railway      |      33.5 |      33.5 |      30.3 |
| Southern Railway           |      40.7 |      41.7 |      41.3 |
| South Central Railway      |      33.3 |      37.2 |      37.2 |
| South Eastern Railway      |      38.1 |      34.7 |      34.3 |
| South East Central Railway |      39.6 |      38   |      36   |
| South Western Railway      |      36.7 |      36.1 |      37.1 |
| Western Railway            |      30.2 |      30.1 |      29.8 |
| West Central Railway       |      28.2 |      27   |      30.2 |
| Over all                   |      34.7 |      34.9 |      34.8 |

*****