POS­I­TIVE OUT­LOOK Rlys Ex­pects Rev­enue to Grow 10% Rid­ing on Freight Earn­ings

How­ever, pen­sion, salary bills weigh heavy

The Economic Times - - Front Page -

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

Newspapers in English

Newspapers from India

© PressReader. All rights reserved.