Technoglitch
Core Member
Facing the gloomy prospect of wiping out even the meagre annual surpluses and plunging into a deficit in FY17, Indian Railways has embarked on a plan to cut operational expenses and boost revenue without tariff increases.
According to official sources, the transporter expects to slash its electricity bill — an annual Rs 12,000 crore now — by about 20% in FY17 as nearly half of the procurement would be via the competitive bidding process introduced recently. It is also targeting a 15% reduction in total working expenses (TWE) next fiscal from the business-as-usual scenario, principally by attempts to optimise staff and fuel costs but without cutting essential transfers to depreciation and pension funds. This would mean the TWE next year would be roughly the same level as Rs 1.62 lakh crore estimated for this year.
Apart from these steps, the sources said, the railways would also try to boost “non-farebox revenue”. Though reconciled to the fact it would receive little help from the finance ministry to meet the additional expenses of about Rs 40,000 crore from the 7th Pay Commission, the transporter reckons it has little room to hike passenger or freight rates.
Indian Railways tracks expenses, not fares | The Financial Express
According to official sources, the transporter expects to slash its electricity bill — an annual Rs 12,000 crore now — by about 20% in FY17 as nearly half of the procurement would be via the competitive bidding process introduced recently. It is also targeting a 15% reduction in total working expenses (TWE) next fiscal from the business-as-usual scenario, principally by attempts to optimise staff and fuel costs but without cutting essential transfers to depreciation and pension funds. This would mean the TWE next year would be roughly the same level as Rs 1.62 lakh crore estimated for this year.
Apart from these steps, the sources said, the railways would also try to boost “non-farebox revenue”. Though reconciled to the fact it would receive little help from the finance ministry to meet the additional expenses of about Rs 40,000 crore from the 7th Pay Commission, the transporter reckons it has little room to hike passenger or freight rates.
Indian Railways tracks expenses, not fares | The Financial Express
