| The railways have this year saved Rs 16.3 on earnings of Rs 100.
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| The key takeaway from the railways’ financial statement is that the improved operating ratio of 83.7 is a result of changes to the accounting system.
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| By keeping the revised estimate of ordinary working expenses at Rs 35,184 crore, Rs 416 crore less than Budget estimates, the railways have managed to show a 3 point improvement in the operating ratio. Otherwise, the ratio is expected to be 86.6.
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| That apart, a healthy 9.6 per cent projected increase in revenue implies that the main reason for growth is higher freight earnings and better capacity utilisation. In addition, the railway ministry has focused on a key area of improvement -- asset sweating.
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| "Be it increasing load per wagon, upgrading axle loads and speeds, terminal improvements or zero-based timetabling, the railways have made it clear that the asset base can go much further with appropriate soft investments and systems improvements towards capacity building," said G Raghuraman, professor, IIM-A.
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| However, the loss on account of coaching services is estimated at Rs 8,490.01 crore for 2005-06. Another social service obligation, on account of transport of essential commodities carried below cost, is estimated at Rs 55.21 crore.
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| The net surplus for 2006-07 is estimated to grow by 6.67 per cent to Rs 4672.82 crore against Rs 4380.44 crore in the revised estimate for 2005-06.
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| Enthused by the performance, Railway Minister Lalu Prasad has declared a record increase in the annual Plan outlay for 2006-07 to Rs 23,475 crore.
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| "The railways are clearly well on their way to a sound financial base. Increasing targets (from 635 million tonnes to 668 million tonnes) three-fourths the way during the current financial and a confident outlook of over 720 mt for the next financial indicate this," Raghuraman added.
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| The total working expenses for the railways are projected at Rs 50,397 crore for 2006-07, with net traffic receipts projected at Rs 9,581 crore.
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| The outlay marked for safety related Plan heads is Rs 2,992 crore for track renewals, bridges and signalling.
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| To fulfill the total outlay, Rs 5,170 crore (22 per cent) will be raised through extra-budgetary resources. This includes Rs 4,170 crore (17.76 per cent), which will be raised by Indian Railway Finance Corporation and Rs 500 crore each are to be raised by the wagon investment scheme and Rail Vikas Nigam Ltd.
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| The fuel bill for 2006-07 is expected to shoot up by 7.5 per cent (Rs 760.42 crore) to Rs 1,0875.58 crore compared with the revised Budget estimates of Rs 10,115.16 crore in 2005-06.
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| The payment of deferred dividend for 2006-07 has been kept at the same level as in the revised estimate for 2005-06 at Rs 663 crore. The budget for dividend to general revenue has been increased to 9.49 per cent at Rs 3,207.73 crore against Rs 2,929.65 crore in the revised estimate for 2005-06. |
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