Air travel beats Indian Railways Rs 1.75 lakh cr to Rs 1.67 lakh cr in revenue

By: | Updated: September 28, 2016 9:38 AM

Air travel no more “elitist”/“luxury” as size of domestic aviation industry at R1.75 lac cr exceeds rly revenue at R1.67 lac cr.

With the size of the domestic aviation industry growing at a fast clip, Railways faces the prospect of losing out. (AP)With the size of the domestic aviation industry growing at a fast clip, Railways faces the prospect of losing out. (AP)

Air travel no more “elitist”/“luxury” as size of domestic aviation industry at R1.75 lac cr exceeds rly revenue at R1.67 lac cr.

Domestic Air Travel Overtakes Rail
With the size of the domestic aviation industry growing at a fast clip, Railways faces the prospect of losing out. With the fare of AC-2 seats marginally lower than that of low-cost carriers the number of passengers travelling in AC-2 fell from 25.15 million in FY15 to 24.98 million in FY16. At an aggregate level, just 0.3% of all passengers on the railway network travel by AC-1 and AC-2 but they account for 8.7% of all passenger revenue in FY16.

MINT reports that project sanctions fell 4.7% in 2015-16. Would have expected situation to be far worse looking at investment scene.

Project Sanctions Continue To Decline
Project sanctions have declined for the third year in a row, falling 4.7% in 2016 compared to the previous year. This is only to be expected as there is consistent data about falling investments. In fact, the fall in gross capital formation in the economy is more severe than this data suggests.

Full attention now to City Gas Distribution. OilMin sets up 2 Committees to develop action-agenda for revving up domest piped gas usage.

Building A Gas Chain
The oil ministry is taking steps to promote the nationwide gas grid, bio-CNG and bio-PNG and focusing on building relevant infrastructure. The campaign is targeted at increasing share of gas in India’s overall energy mix to
atleast 15%.

Another institution created: “River Ganga (Rejuvenation, Protection & Management) Authority” – with stronger powers to achieve goals.

Order To Enable Fast Tracking Of Ganga Cleanup
The Union Cabinet has approved the River Ganga (Rejuvenation, Protection & Management) Authorities Order, 2016. The Order enables fast tracking of policy implementation and empowers National Mission for Clean Ganga to discharge its functions in an independent and accountable manner.

ShipMinistry initiates Port Authorities Bill 2016 to replace Major Port Trusts Act 1963. Trust>Authority>Corporatisation>Pvtisation?

New Port Authorities Bill Put In Public Domain
The new draft Port Authorities Bill 2016 aims to give more autonomy and flexibility to the major ports in the country. The bill has been put in the public domain for the second time after incorporating feedback from various stakeholders.

River – water sharing now goes beyond water. Judiciary – legislature issue (Karnataka); & international relations (Indus Water Treaty).
Massive river-linking programme will add to existing river-water sharing complications. Ex-ante Treaty between states very much in order.

Urgent Need For Water Use Policy
Conflicts arising out of river water sharing among states are bound to rise unless an effective water use policy is put in place. The river basin management bill has been stuck in draft stage for three years and the bill for formation of national water framework too has not made much headway.

Wish there was the same excitement as earlier regarding which cities hv been chosen as SmartCities & which left out. 60 now with round 3.

60 Cities Now Tagged Smart Cities
Maharashtra with 5 cities and Tamil Nadu and Karnataka with 4 cities each bagged the lion’s share in the new list of 27 smart cities. Agra, Kanpur and Amritsar are included among them as is the Prime Minister’s constituency, Varanasi.

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