Railways to miss revenue target by 10% this FY

Written by Rajat Arora | New Delhi | Updated: Feb 11 2013, 18:50pm hrs
Indian Railways is all set to miss its total revenue target of R1.35 lakh crore set for the current fiscal by around 10% due sluggish growth in both passenger and freight earnings.

The total approximate earning of railways for the 10 months from April, 2012, to January, 2013, has been R101,223 crore, which means it needs to earn R34,000 crore in the next two months to meet the target.

We wont be able to go beyond the figure of R122,000 crore even in case the earning from freight increases, a senior rail board official said.

Recently, rail board chairman Vinay Mittal had told FE that railways would miss its freight target by around 15 million tonne (MT). We would be able achieve 1,010 MT against the set target of 1,025 MT, Mittal had said.

The total goods earnings for the 10 months is R70,067.36 crore. Railways in its last budget had set a target of R89,339 crore from freight earnings for the current fiscal, which is far from being met. The total passenger earnings for the period of 10 months have been R25,924 crore, whereas the target for the current fiscal is R36,000 crore.

We have lost around R3,000 crore of passenger earnings due to roll back in fare hike announced immediately after the hike was announced in the last Budget. Though, with the fare hike announced in January, we would get an extra revenue of R1,200 crore, a senior railway official said.

From the passenger fare hike announced in the last Rail Budget, which was rolled back immediately, railways would have mopped up extra revenue of around R4,000 crore.

In January, when the national transporter was struggling to meet its operational expenses, it finally found the courage to implement the passenger fare hike of around 20% from which it expects to earn extra revenue of R6,600 crore.

In the last Budget, railways had predicted its operating ratio to be 84.9%, whereas at present, its operating ratio is hovering around an unhealthy 90%.