(a) whether the Railways revenue is likely to fall short of the target set during the year 2016-17;
(b) if so, the facts in this regard and the extent to which the revenue is likely to fall short;
(c) whether the Government has identified the reasons behind the reduction in revenue; and
(d) if so, the details thereof?
MINISTER OF STATE IN THE MINISTRY OF RAILWAYS
(SHRI RAJEN GOHAIN)
(a) to (d) : A Statement is laid on the Table of the House.
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STATEMENT REFERRED TO IN REPLY TO PARTS (a) TO (d) OF UNSTARRED QUESTION NO. 5246 BY SHRI RAM KUMAR SHARMA TO BE ANSWERED IN LOK SABHA ON 05.04.2017 REGARDING REDUCTION IN REVENUE
(a) Yes, Madam. Anticipating a shortfall, total traffic earnings of Railways have been reduced to ` 1,72,000 crore in the Revised Estimates from ` 1,84,720 crore fixed in the Budget Estimates 2016-17.
(b) Thus the total traffic earnings in 2016-17 have been reduced by ` 12,720 crore in the Revised Estimates vis-à-vis the Budget Estimates.
(c) & (d) Yes, Madam. The reduction in traffic earnings estimates are mainly due to negative growth in freight loading, drop in average freight lead and negative growth in non-suburban (non-PRS) passengers.
During the current year (to end of February 2017), Railways have confronted a negative growth of 0.27% in loading. Average freight lead to end of February 2017 has also dropped to 562 km from 598 km achieved during the corresponding period last year. Coal which constitutes about 50% of Railways’ loading has reported a drop of 19.91 million tonne to end of February 2017 over corresponding period last year. The poor loading in coal has been due to over capacities in power sector and operation of new power plants near coal mines. Leads all across the commodity baskets have been decreasing as production centres have come closer to the places of consumption (also with pit-head plants, merit order system, reducing cost of power transmission, etc).
To end of February 2017, though passengers booked has indicated an overall growth of 0.7%, non-suburban(non-PRS) passengers show a negative growth of 2.05% to end of February 2017. This is mainly due to migration of passengers to the road sector in short lead segment.
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