Indian Railways has notched up its highest revenue till date in the financial year 2016-2017 which stands at 1.68 lakh crore compared to 1.62 lakh crore last year. This revenue has been made possible due to certain reforms by the railways which include boosting cargo movement and introduction of innovative passenger charges.
The railways transported 1107 million tonnes of cargo against a target of 1094 million tonnes till the last fiscal year which is the highest ever mounting up 1.09 lakh crore. The passenger fare also earned close to 48,000 crore, up 2000 crore from the last financial year. In 2016-17, 8221 million passengers travelled by train compared with 8151 million passengers last year. The railway ministry aims to carry freight up to 1200 million tonnes this year. Minor revenue like advertising sales, other miscellaneous income included 11,000 crore.
The fiscal year also recorded the highest ever coal loading from Coal India Limited. Annual loading in 2016-17 is around 223 rakes per day which are the highest ever. Railways had to face loss last year due to poor demand, which it made up by transporting iron. In the year gone by, the Railways started 87 new services, 51 extensions of trains and 5 cases of increase in frequency. This includes 4 Humsafar Express trains, 2 Antyodaya trains, 10 DEMU and 5 MEMU trains.
The innovative methods include discounts on various cargo transportations, an introduction of microeconomics fares for premium passenger trains. The ministry has focused a lot on improving the infrastructure. However, despite improving financial conditions of the transportation medium, its operating ratio has been 95 per cent, which can be attributed to the 7th pay commission which has forced increased salaries for the government employees.
Under the NDA government, the ministry has been allocated 8.5 lakh crore for the 5-year plan. With the improving infrastructure and new development plans coming up, we can expect better financial days ahead for the largest transport carrier.
BW Reporters
The author is a correspondent with BW Businessworld with keen interest in HR and employee welfare.
