Indian Railways passenger segment loss at 80% in some categories; only AC 3-tier gives positive returns


Indian Railways passenger segment loss at 80% in some categories; only AC 3-tier gives positive returns

For the unreserved ordinary sleeper class on the Indian Railways network, the national carrier’s loss is as high as 80% of the cost incurred. And for categories such as the reserved first class and unreserved ordinary second class, the losses are up to 70% of the cost. Across all categories, it is only the air-conditioned (AC) 3-tier category which gives a slight positive return of 7.5%.

Two separate committees headed by DK Mittal and Bibek Debroy had earlier pointed out that AC 3-tier is the only profit-making segment in the heavily subsidised passenger category. While the unreserved ordinary second class at around 4,20,000 million passenger kilometre is the highest travelled category, reserved second class in mail and express trains is a close second with around 3,47,000 million passenger kilometre followed by the reserved sleeper class in mail and express trains at 2,37,000 million passenger kilometre. Read More…

 

Credit By : Financial Express

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