Railways project 16.5% rise in earnings

With no across-the-board increase in fares, passenger numbers and capacity rise will help achieve target

Even as Mamata Banerjee did not announce any across-the-board increase in fares in the Railway Budget on Friday, the railways have projected an increase in passenger earnings by over 16.5 per cent to Rs 30,456 crore.

For the financial year 2011-12, the railways have projected a 17.1 per cent increase in upper-class passenger revenues and 16.4 per cent in second-class revenues, over a passenger growth of 6.4 per cent. During financial year 2010-11, with a 5.3 per cent increase in passenger numbers, the railways’ revenue is set to grow 11.2 per cent.

The Indian Railways is hopeful of achieving the target with an increase in passenger numbers and capacity. “Assuming 6.4 per cent growth in the originating number of passengers and higher traffic output due to the proposed induction of a large number of new trains in the non-suburban segment, the target for next year is achievable,” read the Budget document.

Analysts said the target could be achieved with the railways tweaking reservation charges. “The railways will most likely be able to achieve the target for the current year, as they have tweaked the reservation charges,” said Abhaya Agarwal, executive director & PPP leader, Ernst & Young.

Banerjee also announced the gross traffic receipts were set to cross the Rs 1 lakh-crore mark for the first time and have been estimated at Rs 1,06,239 crore.

However, Banerjee not increasing fares is a matter of concern as the railways need money for expansion. Earnings may be strained further with Banerjee continuing sops for journalists, senior citizens, army personnel and specially abled people.

Vishwas Udgirkar, senior director (transport), Deloitte, said, “The Budget is a completely populist one. Not increasing fares will impact the expansion plans of the railways. Many new trains and lines will need huge amounts of money for their implementation, and by not increasing fares, she is not utilising her income source.”

Fares were not increased during her predecessor’s time, but he tinkered with other things to bring revenues for the railways, he added.

Many additions in concessions announced in the Railway Budget last year are also set to bring cheer for the beneficiaries. Specially abled people will now be able to avail themselves of concessions in Rajdhani and Shatabadi trains. Journalists, who had got a 50 per cent concession on travel with family once a year, can claim the concession twice a year now. Senior citizens, especially women, and army personnel also got their share of happiness.

“In case of women, the age for getting the senior citizens’ concession will be reduced to 58 years from 60 now; and the concession for senior citizen men has been increased from 30 per cent to 40 per cent,” said Banerjee.

Banerjee has also extended the facility of travelling in Rajdhani and Shatabdi trains to the Kirti and Shaurya Chakra Awardees. “In case of unmarried posthumous Param Vir Chakra and Ashok Chakra Gallantry award winners of armed forces, I propose to extend the facility of card passes to their parents,” announced Banerjee.