Oct 19, 2016

Western Central Railway incurs more than Rs 1,000 crore dip in earnings



HIGHLIGHTS
1. Shortfall of over Rs 1,000 crore in Western Central railway earnings.

2. There is a shortfall on account of Rs 26.33 crore in passenger earnings.

3. About Rs 904.74 crore shortfall in goods earnings.
The Indian Railways is in a financial mess. Western Central Railway certainly is. Financial Commissioner, Railways KB Nanda on September 28 wrote a letter to Girish Pillai, General Manager Western Central Railway seeking a clarification on why there was a shortfall of over Rs 1,000 crore in earnings.
India Today is in possession of the letter.

Nanda in his letter wrote, "While reviewing, the financial position to end of August 16, it is seen that there is a shortfall of RS 1013.59 crore in the earning vis-a-vis budget proportion of your Railway. The shortfall is on account of Rs 26.33 crore in passenger earnings and Rs 904.74 crore in goods earnings. There is an urgent need to take all possible steps to make up for the shortfall of earnings."

"I would like you to ensure that the expenditure, is monitored very closely at your end so that we close the financial year as planned."

NO POSITION TO TURN AROUND LOSSES 

The Western Central Railway, however, is no position to turn around the losses. India Today spoke to Surendra Yadav CPRO Western Central Railway, who denied there was any fall in passengers using the Indian Railways. "There is been fall in freight earnings but this is because we are not getting any loading from JP cements. Its financial condition is not good. We are hearing they are in the process of selling the unit."

Confronted with the letter, Yadav, had no answer over the falling passenger earnings.

Indian Railways which is struggling to stem the fall in passenger and freight earnings had seen a fall of 7.7 per cent in freight earnings across the country in July.

The Railway board has already increased the freight rates of coal and cement but that has had a little impact in Western Central Railway.

The low production at the JP cement plant in Madhya Pradesh, according to insiders has also led to heavy loss of employment, which is swirling as an altogether different problem for state government and the region.
Source - India today