Rail Budget 2013: Railways may

suffer Rs.24,600 crore loss in 2012-13

All India | Indo-Asian News Service | Updated: February 26, 2013 12:48 IST

inShare


New Delhi: The Indian Railways is likely to suffer a loss of Rs.24,600 crore in fiscal year ending March 31 as
compared to Rs.22,500 crore in the previous fiscal, Railways Minister Pawan Kumar Bansal said on Tuesday.

Presenting the railway budget in parliament, Bansal said losses had increased sharply in the past one decade
due to rising input cost and near stagnant revenue due to no revision in passenger fare.

The railways posted a loss of Rs.4,955 crore in 2002-03.

This was Bansal's maiden rail budget and a first by a Congress minister in 17 years
Rail Budget 2013: Railways faces Rs. 24,600 crore
losses from passenger traffic in 2012-13
NDTV | Updated On: February 26, 2013 14:57 (IST)


More From Budget

Gems & Jewellery industry disappointed with the budget


Duty cut to help sector; higher cut required: construction gear companies


Interim budget: 16% hike in Home Ministry's budget


Government forms panel to recommend framework for PPP model for coal


Budget 2014: 'One-rank, one pension' decision historic says Rahul Gandhi


Funding body will promote scientific research in India: Nasscom

New Delhi:
Railway Minister Pawan Kumar Bansal made his case for more financial support to Asia's second
largest rail network, saying the growth of the Railways is linked with the growth of the country, and
the Railways needs to be financially sustainable.
Losses to the Railways on account of passenger traffic are likely to mount to Rs. 24,600 crore in
2012-13 from Rs. 22,500 crore in 2011-12, Mr Bansal said in his maiden Budget speech in
Parliament today.

The number of passengers has increased from 8,000 in 2001 to over 12,000 in 2012, yet losses
continue to increase. Mounting scarcity of resources and thin spread of funds continue to be a
problem, he added.

The Railways had targeted to mop up an additional revenue of Rs.6,600 crore for the current
financial year (2012-13), but the fuel price hike wiped out Rs. 3,300 crore of it, according to an
assessment by the Railway Minister himself.

Last time, the Railways went for a price hike was on January 22, when passenger fares were
increased across the board. This hike was attributed largely to fact that the Railways is staring at a
loss ofRs. 25,000 crore in the passenger segment for the current financial year.

"Plans are not being funded in a time-bound manner," he said, adding that "the target for expanding
the railway network needs to be higher".

The Railways plans to raise Rs. 95,000 crore in the next four years of the 12th Five-Year Plan.
Indian Railways reports $US 4.53bn loss in
2012-13
Written by Kevin Smith


"AUSTERITY and economy in expenditure" with "no wastage permitted" was the remedy
prescribed by India's minister for railways Mr Pawan Kumar Bansal for Indian Railways
(IR) at today's 2013-14 budget announcement to parliament after he revealed that IR will
record a loss of Rs 246bn ($US 4.53bn) in the financial year which ends on March 31.
Bansal says that "a sharp rise in input costs" has resulted in a "deterioration of IR's services." However, he
says that the fiscal measures being taken by the ministry are already helping to improve the railway's
financial position.
"As a result of our consistent efforts at maintaining strict financial discipline during the year, the operating
ratio is 88.8%," Bansal says. "This is a source of great satisfaction as the operating ratio has consistently been
over 90% since 1997-98."
Revenue in 2012-13 is expected to come in at Rs 1.28 trillion, short of the Rs 1.35 trillion target, after IR
reported lower than expected earnings from passengers and freight traffic. Despite this, Bansal has set IR a
revenue target of Rs 1.46 trillion for 2013-14, and is aiming to raise the additional funds from increasing
revenues from passenger services and railfreight traffic. Passenger fares are expected to bring in Rs 422.1bn in
2013-14 compared with Rs 325.5bn in the current financial year due to a 5.2% expected increase in passengers
using the network, while railfreight is expected to raise Rs 935.54bn next year compared with Rs 859.56 in
2012-13.
However, Bansal steered clear of increasing fares as a means of closing the funding gap, a move that many in
the cabinet wanted to avoid following a fare increase on January 22, and the upcoming general election. A
proposed fare increase by previous railway minister Mr Dinesh Trivedi in last year's budget announcement
ultimately cost him his job.
Bansal says that IR plans to invest Rs 633.63bn in the 2013-14 financial year and will receive Rs 260bn in
budgetary support. There is also a plan to raise Rs 151bn from the market and Rs 60bn through PPPs.
These funds will predominately be spent on increasing capacity on existing lines. This will involve building
500km of new lines, converting 450km of narrow and metre-gauge track to broad gauge, and track-doubling
750km of single-track lines, as well as investments in improving passenger safety.
"The thrust of the plan is on track-doubling, safety and passenger and staff welfare for which I have increased
the outlay from about Rs 110.41bn in 2012-13 to Rs 130.22bn, an increase of 16%," he says.
Other investment highlights include:
introduction of 67 new express trains
introduction of 26 new passenger services, as well as eight demu and five electric multiple unit mainline
services
72 additional services to be introduced in Mumbai and 18 in Kolkata
extended internet ticketing hours and the start of mobile ticketing services, and
free wifi services on some trains.
Planned investments for the 2012-13 financial year have been reduced from Rs 601bn to Rs 522.65bn, while
the Indian Planning Commission has tentatively pegged IR's investment target for the 12th Five Year plan
from 2012-17 at Rs 5.19 trillion. Budgetary support will amount to Rs 1.94 trillion, with IR expected to
contribute Rs 1.05 trillion.