Indian Railways’ passenger revenues up 76% in April-Nov; on track to exceed budget target | The Financial Express

Indian Railways’ passenger revenues up 76% in April-Nov; on track to exceed budget target

Railways has set Rs 58,500 crore passenger revenue earnings target for FY23, an increase of 50% over the actuals of Rs 39,104 crore in FY22.

Indian Railways’ passenger revenues up 76% in April-Nov; on track to exceed budget target
In the reserved passenger segment, approximately 536.5 million passengers booked tickets during April-November 2022, showing an annual increase of 10%.

Indian Railways’ passenger revenues rose a whopping 76% on year to Rs 43,324 crore in the first eight months of the current financial year, indicating that the full-year earnings target from this segment will be exceeded by a decent margin.

Railways has set Rs 58,500 crore passenger revenue earnings target for FY23, an increase of 50% over the actuals of Rs 39,104 crore in FY22.

The dynamic fare pricing mechanism has contributed significantly to boosting the passenger revenues in the last few years except FY21 when it was hit by Covid-induced curbs. The cross subsidisation of the passenger segment by the freight category is declining as a result.

Railways’ freight loading April–November 2022 was 978.72 MT, 8% more than the year-ago period. Its freight earnings stood at Rs 1.06 trillion during the period, 16% more than the year-ago period.

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During April-November 2022, the revenue generated from the reserved passenger segment rose 50% on year to Rs 34,303 crore compared with Rs 22,904 crore during the same period last year, railways said.

The revenue generated from the unreserved passenger segment during the period grew by 422% on year to Rs 9,021 crore as compared to Rs 1,728 crore during the same period last year.

In the reserved passenger segment, approximately 536.5 million passengers booked tickets during April-November 2022, showing an annual increase of 10%.

In the unreserved passenger segment, 3.52 billion passengers booked tickets during the period, an annual increase of 155%.

Most of the Railways passenger revenue comes from long-distance trains. Over the years, Railways has been unable to fully recover its operational cost of passenger services. Except for AC-3 Tier segment, all other segments of passenger services have registered losses during 2015-2020.

These losses are compensated by earnings from freight services. Niti Aayog noted in a report in 2016 that such cross-subsidisation has resulted in high freight tariffs, leading to a sub-optimal share of railways in freight.

Railways’ freight loading April–November 2022 was 978.72 MT, 8% more than the year-ago period. Its freight earnings stood at Rs 1.06 trillion during the period, 16% more than the year-ago period.

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First published on: 03-12-2022 at 00:30 IST