Railways 2017-18 worst operating relationship in 10 years: CAG
NEW DELHI: The railroads recorded an operating rate of 98.4% in 2017-18, the worst in 10 years, the Comptroller and Auditor General (CAG) said in a report presented Monday in Parliament, adding that the Resign to encourage initiative Elderly people to travel without subsidy found few policyholders.
This means that the public carrier spent Rs 98.4 to earn Rs 100, indicating that his financial health had deteriorated considerably. Railroad finances would have been even worse if it had not been for the prepayment of two public sector companies, NTPC and IRCON, the federal auditor said. The flow of funds from the two UPMs helped the railroad show a surplus of Rs 1,666 million rupees, instead of a negative balance of Rs 5,676 million rupees. This would have pushed the OR to 102.7%.
The numbers showed that the railroads have not been able to cover their operating cost of passenger services and other coaching services, since almost 95% of cargo traffic profits were used to subsidize passenger losses and other coaching services .
The CAG report also revealed that 90% of lost revenue was due to concessions and that the response to the rail ministry's surrender initiative did not work and the concession represented 52.5% of the total allowed by the national government. In addition, most of them made use of the concession in the CA classes.
The initiative began in 2017 to encourage older people to give up their 50% or 100% train fare concessions as part of the railroad's commitment to increase revenues.
The CAG report said that during 2015-2016 to 2017-2018, Rs 3,894 million rupees were granted as a concession to almost 16.5 million senior passengers. In addition, the number of such passengers had increased from Rs 5.1 million in 2015-2016 to Rs 5.9 million in 2017-2018 with the corresponding increase in the amount of the concession from Rs 1,194 million to 1,411.23 Rs million
The review of the impact of concessions allowed to passengers revealed that 89.7% of lost revenue for concessions was due to the concession to seniors (52.5%) and holders of privilege passes/PTO (37.2), the report said of CAG.