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Blog Entry# 2171079
Posted: Feb 19 2017 (21:48)

16 Responses
Last Response: Feb 21 2017 (20:00)
Rail News
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Commentary/Human Interest
Feb 19 2017 (19:49)   Railways’ operating ratio touches a record 109% in April-December

Rang De Basanti^   138872 news posts
Entry# 2171079   News Entry# 294301         Tags   Past Edits
New Delhi: How much does Indian Railways spend to earn every Rs100 it does in revenue?
In...

11 Posts

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Feb 20 2017 (00:40)
Ben_Kenobi~
Ben_Kenobi~   4222 blog posts
Re# 2171079-12              
thou shalt not question thy love for HVDC, or for Thyristors :P
what you mentioned in your third para is the same purpose for which non tarrif revenue department was setup, but difficult to say how much they can contribute (target is to have 15% revenue to come from there, which frankly is a tall order)
agree with you though, this is gonna be a long, long process requiring years to be noticeable. hopefully, sagarmala project will help bring some additional revenue too in future with lines like chiplun-karad, roha-dighi etc
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Feb 20 2017 (00:59)
TheMadrasMail~
TheMadrasMail~   6349 blog posts
Re# 2171079-13              
Your last point really nails one of the most trouble-some issues for railways in our country. All these years, railways has been one of the largest sources of employment for skilled and unskilled labor alike. A move to more private means of transport over the years was simply in response to the increasing number of people requiring employment.
Automation in railways is being opposed severely as it would result in lack of employment opportunities for a significant sector of the population. Again, shifting traffic to railways from other well-established means is facing stiff opposition simply because it would deprive many people of employment. This is the reason why public transportation systems are being hampered by opposition from Taxi,
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Auto and private transport lobbies, and why technology upgrades and automation are being opposed by labor unions. These people wont have anything to do if their jobs are taken away.
While these transitions are logically the correct steps to follow, our country simply has too much population for any of these steps to be implemented seamlessly or without impacting the livelihoods of others. It is an open problem and we have to only wait and see who can provide a sustainable solution.

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Feb 21 2017 (19:20)
A2Z~
A2Z~   17505 blog posts
Re# 2171079-14              
IR of 109 indicates IR is moving continuously towards financial bankruptcy.
Biggest financial woes of IR and steps taken by IR towards their mitigation:
(1) Very high staff (pay perks pension) costs esp due to 7th pay recommendations- 75% of revenue- Nothing done
(2) Very high passenger subsidies (esp non ac classes) - Nothing done. Fare not hiked but miscellaneous charges like increased cancellation
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charges, flexi-fares etc levied on a small section of paxs leaving 85 % (subsidied) paxs almost unaffected.
(3) High fuel costs- have been tamed to large extent through savings made through innovative approaches in electricity & diesel procurement.
(4) Large number of concessions & free passes- Nothing done
(5) Loss making non connected activities like schools, hospitals etc continue unabated
(6) Loss making pax trains- no step taken to make it rationalise such trains to make them profitable or reduce the losses.
(7) Inability to generate non fare revenues to prop up the finances- poor marketing performance
(8) Loss making projects - no critical evaluation done to existing loss making projects and make appropriate modifications to make the more profitable. However a decent success has been achieved in PPP projects and getting funds for IR through involvement of state govts.

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Feb 21 2017 (19:31)
A2Z~
A2Z~   17505 blog posts
Re# 2171079-15              
Fall in ACII pax on Mum & AK Rajs is expected, but IR could still muster little bit higher revenues due to ACIII class. Presently ACII paxs are switching over to airlines. ACIII paxs currently have to pay through nose as they do not have alternative. There future depends on bus operators who, can wean away the flexifare paying ACIII paxs by providing deluxe ac sleeper buses in future.
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Since the demand supply gap in electric power has been filled by installing a large number of thermal power plants in last 2
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decades, the incremental coal loading which kept IR cash registers ringing has become a thing of past. This gave the successive RMs enough leverage to pursue costly and loss making populist schemes at the cost of IR finances. So financially IR, which used to be a bed of roses have become a bed of thorns. Next few years, the scenario is likely tp be same as per the analysts studying the energy scenario. With more stress on environment friendly modes of power generation like Solar, wind etc, the prospects of polluting thermal power plants shall never be same, at it was in last 3 decades.

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Feb 21 2017 (20:00)
SingleTraveller^~
SingleTraveller^~   3234 blog posts
Re# 2171079-16              
Also waste of money is expenditure on sportspersons. This is a transport organisation not a university or a sports federation to feed individuals and give them fat pay packet to excel and showcase their individual talent. The leftover of 20th century war substitute - Olympics - and the need to chest thump in the name of nationalism is the reason for this patronage of sportspersons.
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