Railways take Measures to Generate more Surplus

In order to improve services and to generate more surplus, Railways are striving to increase loading through dynamic, differential and market responsive freight tariff policies. The initiatives under freight business segment include plans to improve throughput, reduction in wagon turn round time, simplification and rationalization of freight structure and goods tariff, discount on incremental traffic in empty flow direction and lean season etc. The initiatives under passenger segment include introducing new trains, running of special trains, speeding up of trains, review of trains with low patronage, attachment of additional coaches in well patronized trains, extension of PRS and UTS facilities to more and more locations, additional leasing of parcel space in certain nominated trains, leasing of vacant luggage compartment of SLR, Assistant guard lobby etc. Further, measures are being taken to control expenditure viz., areas such as fuel/power consumption, contractual payments, purchase of materials, productive use of manpower and efforts at better utilization of assets, improvement in inventory management and various steps to reduce the cost of operation and maintenance of rolling stock etc.

The position has been explained in detail in the White Paper placed in Parliament in December 2009. The impact Sixth Central Pay Commission on payment of salary, pension and their arrears has placed an additional liability of Rs. 55,000 crore on the Railways up to financial year 2010-11. Of this, Rs. 13,267 crore and Rs. 25,311 crore have been paid in 2008-09 and 2009-10 respectively. This has increased the expenditure, affecting the surplus for these years.

While the above measures will help in increasing earnings and containing expenditure, the impact of Sixth Central Pay Commission will also stabilize since Railways have already paid arrears in the years 2008-09 and 2009-10. It is expected that the ‘Excess’ will improve gradually in the coming years with increasing freight and passenger earnings.

This information was given by the Minister of State for Railways, Shri K.H. Muniyappa in a written reply in Lok Sabha today.


Published in: on November 28, 2010 at 2:48 pm  Leave a Comment  

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