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“Railways is losing revenue to the tune of Rs 3,000 crore annually, courtesy all the fare-cuts made during the past five years,” ministry sources told The Indian Express. The quantum of the “losses” has all of a sudden assumed much significance, given the fact that the Railways is struggling to meet its revenue generation target due to the ongoing economic slowdown. Insiders point out that the forthcoming Rail Budget on July 3 may not report high cash-surplus figures, as was the case with the previous Rail Budgets.
The fact that the Railways will have to shell out Rs 14,000 crore this year to meet the recommendations of the Sixth Pay Commission is not likely to help matters further. “There will be little to show in terms of cash surplus,” senior officials admit. Nevertheless, Railway Minister Mamata Banerjee is expected to go the politically correct way in doling out some reductions in fares here and there, which would further hit the revenues.
Lalu had made it a policy to announce “conditional” or “token” fare-cuts during his tenure. In 2008, he had announced a reduction of 7 per cent and 4 per cent, respectively in the AC 1 and AC 2 tier class fares. In 2007, he had announced 4 to 8 per cent reduction in fares for the newly designed high capacity AC 3 Tier and AC Chair Car coaches. Another 2 per cent cut was made on the fares for these high capacity coaches in 2008.
In the February 13 Interim Rail Budget this year, Lalu had announced a 2 per cent cut in the fares of AC first class, AC 2 tier, AC 3 tier and AC chair car. Lalu had gone on to claim that he had reduced the fares for AC first class by 28 per cent and AC 2 tier by 20 per cent during his tenure.
Railways’ Operating Ratio (which signifies the sum of money spent to earn a sum of Rs 100), is expected to worsen further. In the Interim Budget, Railways had projected an Operating Ratio of 88.3 per cent for this fiscal. This figure, say officials, could go up further. Significantly, Railways’ Operating Ratio had dropped down to 75.9 per cent last fiscal making it the best in four decades.
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Indian railway needs massive investment for uni gauge system, doubling of tracks on all route, building hundreds of new routes, removing thousands of small bottle necks like creation of Merta city Ajmer route via Pushkar, building and replacing thousands of bridges and tunnels, 100% electrification, tripling of rolling stock, creating massive paid civic amenities at or near railway stations etc etc. In this country of 1200000000 human beings railway needs many innovative ways to mop up infinite amount of money. I will request to issue future passenger and freight tickets purchasable even in black money. When roads are 8 lanes why single line railway routes still exist. Railway needs many innovative ways to mop up infinite amount of money. I will request to issue future passenger and freight tickets purchasable by any asset or money. Guna Etawah route started when Tendulkar started his international career and now he has attained the status of sporting God G-E project is still incomplete. Will policy makers listen to me.
ALL BUDGETS DURING LALU REGIME WERE MANIPULATED AND PEOPLE HAVE GIVEN PROPER RESPONSE TO HIS COMICS.
As every body knows Laloo Prasad is a cunnig misleading person. There is no wonder if he had managed figures to show profit and betterment of railways. Now his work is exposed by loss of 3000 crore rupees. This requires detailed investigation.B SGANESH, BANGALORE
Why worry about it? You publish the news today, people will forget it tomorrow. The Railway employees do not want anyone to know that they are paid much more than what their labour is worth. The commuters are carried like sardines in our locals. If the railway minister thinks of raising the fare, the railway coaches will be torched and the government will be thrown out. So, let things go on degenerating life long. That is our Indian Karma.
Lalu 's idiosyncrasy did no good to him or his party.Hope there is a lesson in this to other incumbents. Booking systems are still manipulated especially the tatkal scheme. The third row in the side in 2nd sleeper / 3rd AC has dehumanized the passengers and invariably there is some altercations which erupt because of this. Why blame the Minister when all under him have been ' yes ! ministers' ! Sack the board and all top General managers for the 3000 crore revenue loss. Revamp the system ,let there be people who concentrate on efficiency in running the system and offer value based services to the passengers.Let this huge monolith start functioning like what it ought to an efficient corporate rather than be a junk yard of have-beens and living-on-doles type of community. However I want to record my appreciation for the low accident record in the last few years and also the speedy rectification when ever an accident has taken place.
Hopeless conditions of coaches, catering. Those writing for Lalu must be travelling by air. Poor punctuality, indisciplened staff -(remember a drunk driver hijacked train). Tourism sector has been most effected because of careless and reckless management under Lalu.Cocroches and rats occupy I a/c class in Delhi - Kolkata Rajdhani. Lal Bhadur Shastri resigned as a Rly. minister when an accident had taken place - It is very painful when a criminal like Lalu is complimented by readers saying "in 60 years nobody has done such good work",either this fellow does not know history of India or a sycophant.
If, even a fraction of the unused/unusable railings and other scraps are sold off and vacant spaces in stations rent out the railways can make a bounty and come out of the losses. Then why this clamouring about revenue losses?
The big question is: Who audited, supervised and checked Lalu's budget which always showd surplus? He would have got a Nobel prize for his budget!
When railways fare increase does passengers get more services from railways? for example in Tatkal scheme passengers are paying more then it was first implemented....but the services decrease...Does any Railway minister not look who is geeting the increase amount. and who suffers. In Rajdhani or any other trains Pantry service is detoreate day by day. The food service cannot be eat by a normal people. Does the Railway minister try and pantry food itself then only he/she can feel.. If fare increase than more effect is gone to passenger who buy ticket by in his own poscket not the govt employees who get reimbursement.....but service not increase...Railways department just get the fare...
It was morally incorrect for ex Railway Minister Lalu Yadav who mentioned about surplus in Railway budget, even making management institutes to invite him for lecturing on profitability. After his exit the rut is in the open and since railways are the best and economical mode of transport, our ministers should not allow the system to die for their narrow vote garnering politics. It is the selfishness of some of our people to go gaga over reduction in tariffs, without considering the health of the system. Hope Didi doesn't do any damage for poltitical expediency.
It is an age old practice to blame the outgoing person for all the messes. Again, the article carries a highly misleading title. Loss of revenues may not necessarily mean a net loss. Yes, there might have been substantial revenue losses due to fare cuts. But whether that has helped in increasing the traffic in railway has to be seen. All said and done, the railways had got a facelift. I am amused to see that one needs more than 5 years to find that fare cuts result in revenue losses. I am not a supporter of Laloo's antics and politics, but one has to accept that Railways had grown leaps and bounds under his regime.
It is an age old practice to blame the outgoing person for all the messes. Again, the article carries a highly misleading title. Loss of revenues may not necessarily mean a net loss. Yes, there might have been substantial revenue losses due to fare cuts. But whether that has helped in increasing the traffic in railway has to be seen. All said and done, the railways had got a facelift. I am amused to see that one needs more than 5 years to find that fare cuts result in revenue losses. I am not a supporter of Laloo's antics and politics, but one has to accept that Railways had grown leaps and bounds under his regime.
All the financial re enginering comes home to rooste one day.Politicians may win with their short policies, but the nation is a sure looser.We pray and hope that a visionary leader comes and takes the Nation through safe route.
Who cares for losses in Ministry? Lalu Yadav had concentrated on his vote bank policies by thought of fare cuts as million people traveling by rail per day will vote for him. There are still no benefits to passengers for these low fares, services offer by Indian Railways during travel are one of world worst service and our Indian Railways hardly reach you designation in time bound. Why today even middle class people are attracted towards low cost carriers. Our new Railway Minister have to do lots of home work before presenting budget
Lalu Yadav has done wonderful job as a Railway Minister.No one has performed like him in the past 60 years. Hope,congress will realise this in due course. In the interestof Development, congress must utilise Lalu without any presitige issue.