Jan 4, 2017

Railways may miss revenue target by ₹12,000 cr this fiscal

NEW DELHI, JANUARY 2: 

The operating ratio of the Railways is expected to worsen to 94 for the present fiscal from the budgeted projections of 92, a top Railway Ministry official said here on Monday. Operating ratio is a measure of profitability, and represents an expenditure of 94 paise for earning ₹1.
The revenues are expected to be lower than the budgeted estimate for the year by ₹12,000 crore, as per present estimates. The Railways expects to close 2016-17 with a revenue of ₹1,72,000 crore against the budgeted estimate of ₹1,84,000 crore.

The national transporter expects an expenditure of ₹1,22,000 crore, including the staff costs, a top official told Business Line, on the sidelines of a conference.

It is trying to set aside ₹5,000 crore as appropriation to depreciation reserve fund and capital fund. He added that the Ministry of Finance had to ratify the numbers.

While this year the Railways is preparing the Budget, next year the Finance Ministry will prepare the Railway Budget, he added.

On whether the passenger fares will increase, another railway official maintained that fares are dynamic and will respond to the situation. On the expenditure side, the Railways will implement the full Pay Commission recommendations.

Demonetisation effect

Another top official said the Railways has waived service charge for online ticketing and have taken a hit of ₹40 crore for the same. It has also added a discount of 0.5 per cent for season tickets bought in the suburban segment though cashless process. Season tickets account for 75 per cent of suburban segment.

Sharing details of the amount collected through banned ₹500 and ₹1000 notes, the official said that Railways collected ₹2,400 crore after November 8 in cash, of which ₹1,700 crore was in ₹500 denominations and ₹444 crore in ₹1,000 notes.
Source - The Hindu Business Line