New Delhi: Railway Minister Ashwini Vaishnav told the Rajya Sabha on Monday that the financial condition of Indian Railways is good and efforts are being made to improve it continuously. Responding to the discussion on the functioning of the railway in the upper house, he said that the Railways has successfully overcome the challenges related to the Kovid-19 epidemic and now there is a steady increase in passenger and goods traffic.
The minister said that during the financial year 2023-24, the Railways earned revenue of Rs 2,78,000 crore against the total expenditure of Rs 2,75,000 crore. This makes it clear that the Railways is completing its cost with its revenue, which is a positive sign.
Where does the major part of the railway expenses go?
Giving information about the major expenses of the railway, the Railway Minister said that:
- Employees Salary: ₹ 1,16,000 Crore
- Pension Payment: ₹ 66,000 Crore
- Energy expenditure: ₹ 32,000 crore
- Financing cost: ₹ 25,000 crore
Despite all these expenses, the Railways is capable of maintaining the balance of its economic resources and is working towards continuous improvement.
Passenger fares subsidy – Social responsibility of railway
The Railway Minister emphasized that the passenger earns a subsidy on rent by earning revenue from the railway freight.
- Actual cost per kilometer travel: ₹ 1.38
- Average fare to be charged from passengers: ₹ 0.72
- Total passenger subsidy in 2023-24: ₹ 57,000 crore
This means that the railway collects less rent from the real cost from the passengers and its difference is met by the revenue earned from freight.
Comparison of Indian Railways with neighboring countries
The Railway Minister also informed that the rail travel is the most economical in India. For example:
- India: General fare for 350 km travel ₹ 121
- Pakistan: ₹ 400 on the same distance
- Sri Lanka: Fare of equal journey ₹ 413
He also clarified that there has been no increase in passenger fares since 2020.
Railways benefit from electrification
The energy cost of the railway remains stable at the level of ₹ 30,000- ₹ 32,000 crore. The minister said that the Railways has gained a lot of financial benefit from the railway electrification schemes implemented after 2019, which has reduced its operational cost and also increased the functionality of trains.
Indian Railways will soon export locomotives
Highlighting the achievements of Indian Railways, the Railway Minister said that:
- India will soon join the top three countries in the world with 1.6 billion tonnes of freight capacity.
- India will lag behind China and America only in terms of freight.
- The engines built at the locomotive construction factory at Madhaura, Bihar will soon be exported, which will give global identity to India’s railway technology.
