As both passenger and freight traffic declined, the revenue earned by
the Indian Railways was hit.
The total revenue declined by 8.9 per cent
to Rs.1.72 lakh crore in 2015-16 compared with last year. The gross
traffic earnings were 8.6 per cent less than the target of Rs.1.83 lakh
crore in 2015-16.
The freight earnings were hit due to poor performance
by the core sector – which constitutes around 88 per cent of the goods
transported by the Indian Railways. Railway Board Chairman AK Mittal said the total passenger
traffic declined in the short distance traffic as people may have chosen
road as alternate means of transport.
Railway Board Chairman AK Mittal, however, added the traffic on
long-distance routes grew by around 5 per cent.
Gross traffic earnings were 8.6 per cent less than the target of Rs.1.83 lakh crore
In 2016-17, Railway Minister Suresh Prabhu projected the gross traffic receipts at Rs.1.85
crore, an increase by 10 per cent over the revised estimates of the
present year.
An incremental traffic of 50 million tonne in freight is expected in
2016-17 as the government is looking to bring down freight tariffs and
look to increase the basket of freight goods.
The share of railways in the total freight traffic (35 per cent at
present) has been consistently declining over the years, as pointed out
by Railway Minister Suresh Prabhu.
The total revenue is expected to grow by 10 per cent to Rs.1.89 crore in
2016-17 as the government is looking to tap other sources of revenue
besides passenger and freight.
Railway Minister Suresh Prabhu listed station redevelopment,
monetising land along tracks, monetising soft assets, advertising as
some of the means to shore up non-fare revenues.
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