POSITIVE OUTLOOK Rlys Expects Revenue to Grow 10% Riding on Freight Earnings
However, pension, salary bills weigh heavy
Rajat Arora & Nishtha Saluja
New Delhi: The railways expects its revenue to grow nearly 10% in the next fiscal year. The budget estimates for 2017-18 have pegged the overall earnings at ₹ 189,498.37 crore as against ₹ 172,305 crore in the current fiscal.
Freight earnings are expected at ₹ 118,156.50 crore in consonance with the loading target of 1,165 million tonnes (MT), which is 71.50 MT incrementaloverRE2016-17.Passenger earnings in the next fiscal have been pegged at ₹ 50,125 crore, up from ₹ 48,000 crore in the current year.
The railways expects passenger loading to grow a marginal 0.2%, while revenue from the passenger segment is expected to rise to almost ₹ 2,000 crore. Other coaching earnings and sundry earnings have beenestimatedat ₹ 6,494.04croreand ₹ 14,122.83 crore, respectively.
“The budget has a forward looking statementofintentonprovisionofend to end transport solutions for select commodities, as well as customisation of infrastructure and practices for transport of perishable goods, which are expected to enhance railways’ share in freight transporta- tion,” said Peeyush Naidu, partner at Deloitte.
Operating ratio, however, is expected to be at 94.57%, which means the railways will be spending ₹ 94.57 to earn ₹ 100. This is because of high expenditure and stunted growth in passenger and freight loading. The transporter’s high pension and salarybillsarealsothwartingitsefforts to maintain a stable operating ratio. “The growth in coal and steel loading has been flat. Keeping all this in mind, I think we have done a decent job by controlling the operating ratio at 94.5,” finance commissioner Shahzad Shah told ET. The railways, however, said the operating ratio could have been more had it not controlledtheexpenditure. It said an uptick in freight loading in the last two months has also helped control the situation. “We have seen an uptick in freight and passenger loading. The burden of the seventh payawardwon’treflectmuchinnext financialyearandweareonapathof gradual recovery,” railway minister Suresh Prabhu told ET. ₹ ₹
Operating ratio is likely to be at 94.57%, which means the railways will be spending
94.57 to earn 100