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Railway Convention Committee (2014) RCC-151 25 RAILWAY CONVENTION COMMITTEE (2014) (SIXTEENTH LOK SABHA) MINISTRY OF RAILWAYS (RAILWAY BOARD) INTERNAL RESOURCE GENERATION BY INDIAN RAILWAYS LOK SABHA SECRETARIAT NEW DELHI August, 2018 /Sharavana, 1940 (Saka) TWENTY FIFTH REPORT RAILWAY CONVENTION COMMITTEE (2014) (SIXTEENTH LOK SABHA) MINISTRY OF RAILWAYS (RAILWAY BOARD) INTERNAL RESOURCE GENERATION BY INDIAN RAILWAYS Presented to Lok Sabha on 03.8.2018 Laid in Rajya Sabha on 03.8.2017 LOK SABHA SECRETARIAT NEW DELHI August, 2018/ Sharavana, 1940 (Saka) CONTENTS PAGES COMPOSITION OF THE RAILWAY CONVENTION COMMITTEE (2014) (i) INTRODUCTION (ii) PART-I (I) Introductory 1-2 (II) Targets and Achievements 2-5 (III) Passenger and Freight Earnings 5-22 (IV) Non-fare Earnings 23-31 (V) Ordinary Working Expenses (OWE) 31-35 (VI) Railways’ Efficiency Indices 35-39 (VII) Constraints in Internal Resource Generation 39-43 PART-II OBSERVATIONS/RECOMMENDATIONS 44-57 APPENDICES I. Minutes of the Thirty Second sitting of the Railway Convention Committee (2014) held on 26 April, 2017. 58-59 II. Minutes of the Forty Seventh sitting of the Railway Convention Committee (2014) held on 20 April, 2018. 60-61 III. Minutes of the Fiftieth sitting of the Railway Convention Committee (2014) held on 02 August, 2018. 62-63 COMPOSITION OF RAILWAY CONVENTION COMMITTEE (2014) Shri Bhartruhari Mahtab, MP - Chairperson Members Lok Sabha 2. Shri Abhishek Banerjee 3. Shri Sanganna Amarappa Karadi 4. Shri K. Ashok Kumar 5. Shri Kamalbhan Singh Marabi 6. Vacant* 7. Shri Ramen Deka** 8. Shri Janak Ram 9. Shri Rahul Ramesh Shewale 10. Shri Bharat Singh 11. Shri Liladharbhai Khodaji Vaghela 12. Shri K.C. Venugopal Rajya Sabha 13. Shri Sanjay Seth# 14. Shri T.K. Rangarajan 15. Shri Prem Chand Gupta 16. Shri Abdul Wahab 17. Dr. V. Maitreyan# 18. Shri Ranvijay Singh Judev SECRETARIAT 1. Ms. Kavita Parsad - Joint Secretary 2. Shri M. K. Madhusudhan - Director 3. Shri D. R. Mohanty - Additional Director *Vacancy occurred w.e.f. 05th July, 2016 vice Smt. Anupriya Patel was appointed MOS. ** Nominated w.e.f. 01 August, 2018. # Nominated w.e.f. 07 June, 2018. INTRODUCTION I, the Chairperson, Railway Convention Committee (2014), having been authorized by the Committee, present this Twenty Fourth Report on ‘Internal Resource Generation by Indian Railways’. 2. The Committee obtained background material and written information from the Ministry of Railways (Railway Board) in connection with the examination of the subject. The Committee also took oral evidence of the representatives of the Ministry of Railways (Railway Board) on 26th April, 2017 and 20th April, 2018. The Committee express their thanks to the representatives of the Ministry of Railways (Railway Board) for appearing before the Committee and also for furnishing requisite oral and written information on the subject, as desired by the Committee. 3. The Committee considered and adopted this Report at their sitting held on 02nd August, 2018. The Minutes of the sitting of the Committee are appended to the Report. 4. For facility of reference and convenience, the Observations/ Recommendations of the Committee have been printed in bold letters in the Report. New Delhi: BHARTRUHARI MAHTAB 02 August, 2018 CHAIRPERSON 11 Sharavana, 1940 (SAKA) RAILWAY CONVENTION COMMITTEE REPORT PART - I I. INTRODUCTORY Internal Resource Generation by the Indian Railways is appropriated to various Railway funds like Depreciation Reserve Fund (DRF), Capital Fund (CF), Development Fund (DF), Rashtriya Rail anraksha !osh (RRSK) and Debt ervice Fund (DSF). #hile the amount in DRF, CF, DF and RRS! are utilised for annual Capital $%penditure in Indian Railways, the amount in DSF is meant for future debt service obligations in respect of loans from JIC(, #orld )ank and for arrears arisin& out of implementation of Central *ay Commission recommendations. +" Internal Resource Generation by the Indian Railways can be defined as the e%cess of railway receipts over its e%penditure on (i) Ordinary #orkin& $%penses, (ii) Miscellaneous $%penditure, (iii) (ppropriation to *ension Fund, and (iv) Dividend *ayment on the Capital-at/char&e. However, Indian Railway1s Dividend liability for +234/35 was waived pursuant to the recommendation of this Committee (RCC). Conse6uent upon the mer&er of Railway )udget with the 7nion )udget w.e.f" the Financial year +235/38, Indian Railway1s Capital-at-char&e has been wiped o9 and thus Dividend liability has been discontinued by the Government of India" :" The 6uantum of internal resource &eneration varies from year to year dependin& on the receipts vis-a-vis e%penditure. Factors like 1 &rowth in traffic earnin&s, increase in -#$=*ension liability and implementation of periodic *ay Commission recommendations have impacted IR’s internal resource &eneration" While Indian Railways has been able to meet its revenue e%penditure and pension liability to the full, it has been a challen&e for the Railways to &enerate enou&h surplus for investin& in modernization and e%pansion of rail network" ?" (&ainst the above backdrop, the Committee selected the subject for in/depth examination and report" In the process, the Committee obtained preliminary materials, written reply and post/evidence information from the Ministry. The Committee also undertook On-the- spot tudy Aisits to various Bonal/Divisional Railways to obtain ,rst/ hand knowledge on the efforts made by the Bonal Railways to &enerate internal resources" ubsequently the Committee took oral evidence of the Ministry of Railways (Railway )oard) on two occasions. )ased on the written and oral depositions of the Ministry as well as the inputs &athered at the field level, the Committee have broached upon the subject matter in the succeedin& para&raphs and &iven their considered opinion/su&&estions in Part-II of this Report" II. TARGETS AND ACHIEVEMENTS 5. (s regards the tar&ets ,%ed for internal resource &eneration from various sources and achievements made thereof durin& the last five years viz" +23:/3? to +235/38, the Ministry furnished the followin& comparative statementD 2 4" (s may be seen from the above comparative data, there have been shortfalls in achievin& the internal revenue &eneration tar&et in all the years, e%ceptin& +23?/3C where the internal resource &eneration was Rs. 15,440 crore a&ainst a tar&et of Rs. 15,053 crore. 5" In the above conte%t, the Committee desired to be apprised of the reasons for shortfalls in meetin& the tar&et durin& the four years of last five fiscals. In response, the Ministry submitted as underD +23:/3? The internal resource &eneration is Rs. 33,668 cr as a&ainst a tar&et of Rs.14,496 cr with a shortfall of Rs. 2,828 cr due to 3 Earnin&s shortfall in passen&er (Rs. 968 cr due to less than tar&eted non-suburban non/PRS passen&ers) and &oods (mar&inal shortfall of Rs. 94 cr) shortfall in clearance of traffic outstandin&s (Rs. 330 cr) receipt of lesser subsidy from the government ( Rs. 159 cr) higher e%penditure on -#$ (Rs.511 cr), .iscellaneous e%penditure (Rs.44 cr) and dividend payment (Rs. 169 cr) higher appropriation to Pension Fund (Rs. 1150 cr) +23?/3C The internal resource &eneration is Rs. 3C,440 cr as a&ainst a tar&et of Rs.15,053 cr e%ceedin& the tar&et by Rs. 386 cr. +23C/34 The internal resource &eneration is Rs. 34,106 cr as a&ainst a tar&et of Rs.16,902 cr with a shortfall of Rs. 796 cr due to Earnin&s shortfall in passen&er (Rs. 3,093 cr due to less than tar&eted non-suburban non/PRS passen&ers), &oods (Rs. 2,64C cr due to less than tar&eted loadin& and avera&e freight lead) and sundry (Rs. 301 cr) higher Miscellaneous e%penditure (Rs.98 cr) and dividend payment (Rs.227 cr) +234/35 The internal resource &eneration is Rs. 32,113 cr as a&ainst a tar&et of Rs. 12,895 cr with a shortfall of Rs. 2,782 cr due to Earnin&s shortfall in passen&er (Rs. 3,720 cr due to less than tar&eted non/suburban passen&ers), &oods (Rs. 4,C43 4 cr due to drop in avera&e freight lead) and other coachin& (Rs. 688 cr) shortfall in clearance of traffic outstandin&s (Rs. 162 cr) shortfall in Miscellaneous receipts (Rs. 60 cr) +235/38 The internal resource &eneration is Rs. 3,385 cr as a&ainst a tar&et of Rs. 11,425 cr with a shortfall of Rs. 8,238 cr due to Earnin&s shortfall in passen&er (Rs. 3,482 cr due to less than tar&eted non/suburban passen&ers), &oods (Rs. ??C cr mainly due to less than tar&eted loadin& of Iron Ore), other coachin& (Rs. 1,384 cr) and sundry earnin&s (Rs. 5,:3+ cr mainly due to less than tar&eted revenue from land monetisation) shortfall in clearance of traffic outstandin&s (Rs. 76 cr) higher appropriation to Pension Fund (Rs. 1698 cr).F 8. #hen the Committee desired to know the tar&et ,%ed for +238/ 3E and measures taken or optimum achievement of the tar&et, the Ministry stated that in +238/3E )E, the internal resource &eneration tar&et was Rs. 13,492 crore. Throwin& li&ht on the overall revenue tar&et, a representative of the Railway Board submitted in evidence: “For +238/3E, the tar&eted revenue is Rs. 2,00,5?2 crore. This amount was based on attainin& the revenue in +235/38 which is rou&hly about Rs. 1,87,000 crore. o, now, as you ri&htly pointed out, we need to push more now into both land monetisation in terms of increasin& and utilisin& it" Our incremental load has been phenomenal.
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