Tap non-fare revenue for cash flow, Railways told

Tribune News Service

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New Delhi, January 29

Noting that the Indian Railways is trying to be back on track with a host of initiatives, the Economic Survey for the year 2017-18 has cautioned the national transport monolith on its falling revenue and has thus suggested it to tap non-fare revenue to keep pace with its cash requirement.

Highlighting the various “transformative” steps taken by the Centre to keep the Indian Railways moving, the Survey, which was placed before the two Houses of Parliament, mentioned the transport monolith’s efforts in prioritising key investment areas like dedicated freight corridors, high-speed rail, high capacity rolling stock, last mile rail linkages and port connectivity among other things.

It, however, raised red flag on falling revenue from its core operations and therefore suggested that the railways should look to tap non-fare revenue to keep the required cash flow. “To make rail transportation attractive and arrest the declining trend of rail share, various initiatives were taken, including tariff rationalisation, classification of new commodities, new policy guidelines for station to station rates…,” it said.

The survey also said “station redevelopment” could be a big source of revenue generation by providing “world-class amenities and services” in and around railway station like digital signage, escalators/elevators, self-ticketing counters, executive lounges, luggage screening machines, walkways, holding areas for passengers, grand and distinctive roofing and flooring, free and paid Wi-Fi connection.

“Station redevelopment programme is envisaged to be done by leveraging commercial development of railways’ spare space in and around the station,” the survey said.

The Survey also talks of various steps taken to make rail transport attractive. “The share of Railways in freight movement has been declining primarily due to non-competitive tariff structure. While the passenger fare had remained more or less flat, the freight has increased sharply over the years. To make rail transportation attractive and arrest the declining trend of rail share, various initiatives were taken in 2016-17,” it said.