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Covid-19 impact: Railways looks to FinMin for pension liabilities

The railways is the only government department which meets the pension expenditure of its retirees from its own receipts.

Railways
The railways pays pension from its annual earnings through a pension fund that was introduced in 2003.

Hit by a fall in revenue from freight as well as passenger traffic owing to the Covid-19 pandemic, the Indian Railways has approached the ministry of finance seeking relief in pension liabilities for the current fiscal year. For 2020-21, staff cost and pension liabilities totalled aro­und Rs 1.46 trillion for the railways. Of this, staff cost was aro­und Rs 92,993 crore while pe­n­sion bill stood at Rs 53,000 crore. The cumulative revenue from freight, sundry and passenger segments was down to Rs 53,725 crore, a fall of Rs 34,257 crore, during the six months ...