Railways carries out certain transport activities which are uneconomic in nature and are carried out in the larger interest of the country. The tariff policy on Indian Railways has traditionally been one of restraint with regard to increase in passenger fare. Indian Railways continues to incur losses every year by performing a variety of un-remunerative service. These losses are mostly due to (a) Low ordinary second class fare, (b) Low Suburban and non-suburban season ticket, (c) Loss on essential commodities carried below cost, and (d) a variety of concessions granted on passenger ticket. Working of uneconomic branch lines, too, imposes a heavy burden on Indian Railways’ finances. A gap is thus created between the revenue income generated through these service and their costs. The overall losses incurred on coaching operation services and on essential commodities carried below the cost of operation was ₹35959.59 Cr. in 2015-16.

 

This Press Release is based on the information given by the Minister of State for Railways Shri Rajen Gohain in a written reply to a question in Rajya Sabha on 05.01.2018 (Friday).

 

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