06 December Friday

Indian Railways in Severe Crisis – CAG ; Revenue Declines 90%

Web Desk‌Updated: Tuesday Dec 3, 2019

NEW DELHI : Indian Railways is neck  deep in crisis, reports Comptroller and Audit General of India  (CAG). While its  expenditure continues to spiral, the public sector  giant's  total revenue plunged  90% in last two years. And the Income from operations is its  worst in 10 years.


At ground level, production activities to the tune of Rs 1,00,000 crore have come to a standstill owing to cash crunch. 


The advance freight charges that ticked in from public sector giants NTPC and Ercore saved the network from a total paralysis scenario.

The CAG report is suggestive of how Indian Railways too is not immune to  the fiscal crisis plaguing all sectors of the economy.


The share of capital expenditure via internal resourcesat teh Railways,  fell from 26.14 percent in 2014-15 to 3.01 in 2017-18.  The budget allotment for Railways too saw a decline.


Turning to lenders in the present situation could be catastrophic. Rail Budget  ceased since three years and Centre’s annual budget is the only avenue.


The steady decline of Railway’s fiscals sums up like this : :
The income surplus of Rs 10,505.97 crore in 2015-16 decreased to Rs 1,665.61 crore in 2017-18. while operative expenses increased during that timespan.

In micro terms, , the railway now spends Rs. 98.44 to earn Rs 100 as against Rs 90.46 In 2008-09.