Is Indian Railways in loss or profit?

The Railways suffered a loss of Rs 38,017 crore in the passenger segment in the last fiscal due to the coronavirus crisis, but some of what it lost was compensated by the goodwill it earned by running Shramik Special trains, ferrying essentials and through innovation in freight movement which helped surpass last years’ …

What is operating ratio in railways?

“Operating ratio for the year 2019-2020 was 98.36 per cent… the operating ratio for 2020-21 has been calculated at 97.45 per cent on a provisional basis,” the Railway Board said in reply to an RTI query by Madhya Pradesh-based activist Chandra Shekar Gaur.

Is Indian Railways in profit or loss 2019?

Indian Railways suffers loss worth Rs 38,017 crore in passenger earnings.

What does Indian Railways do with its revenue?

Rail freight accounted for the highest share of the total railways revenue across India with approximately 65 percent in financial year 2020. That year, around 1.2 billion metric tons of freight was carried by the Indian Railways. Coal was the major commodity being carried across the country.

Is Indian Railway in loss Quora?

Yes , Indian Railways is indeed running in losses.

How is operating ratio calculated?

It is calculated by dividing a property’s operating expense (minus depreciation) by its gross operating income. The OER is used for comparing the expenses of similar properties. On the other hand, the operating ratio is the comparison of a company’s total expenses compared to the revenue or net sales generated.

What is Indian Railway salary?

Indian Railways

Indian Railways logo
Rail Bhavan, New Delhi
Revenue	₹146,609 crore (US$19 billion) (2020-21)
Net income	₹2,800 crore (US$370 million) (2020-21)
Owner	Ministry of Railways, Government of India

Is Indian Railways in profit or loss 2018?

In a written reply to a question in the Lok Sabha, Goyal said the total sundry earnings of Indian Railways for 2018-19 were however, Rs 6,996.22 crore (provisional). “Overall, Indian Railways is not incurring losses.

Why is railway in loss?

Since increasing the ticket fares affects the passengers, we cannot do so. During the pandemic, the Railways suffered losses of ₹36,000 crore,” he said. “Only goods trains generate revenue. During the pandemic, these trains played an important role in carrying goods and providing relief to people,” he added.

How many trains are operating in India?

Indian Railways is among the world’s largest rail network, and its route length network is spread over 67,956 kms, with 13,169 passenger trains and 8,479 freight trains, plying 23 million travellers and 3 million tonnes (MT) of freight daily from 7,349 stations.

Is Railway making profit?

Indian Railways with its ongoing transformative initiatives will be “highly profitable” in the coming five to six years, Railway Minister Ashwini Vaishnaw said on Thursday. The minister exuded confidence that the national transporter will have a “superb” business proposition in the coming years.

What are the main causes of losses of Indian Railways?

Passenger Operations. This is major contributor for losses and sometime it reaches to 110 operation cost ratio e.g. to earn 100 INR IR is spending 110 INR (already 10 INR Loss). Existing Fare Structure is too much low (especially for Sleeper / Second Class) and due to vote bank not inflated as per Market.

Why is IR losing money on fare structure?

This is major contributor for losses and sometime it reaches to 110 operation cost ratio e.g. to earn 100 INR IR is spending 110 INR (already 10 INR Loss). Existing Fare Structure is too much low (especially for Sleeper / Second Class) and due to vote bank not inflated as per Market. Everyone dare to increase fare on the name of poor people.

How long does it take to break even in Indian Railways?

A basic crude back of the envelope calculation itself works out a loss statement of nearly 99.8\%. To break even at current levels it would take around 600 trips ( about 1200 days) to get back my revenue and capital ( not profit ). Hope you understand why the Indian Railways is running in loss now.

Why is the Indian Railways running like a charity?

But Indian Railways is running like charity for popular government and vote bank and because of this missing basic discipline of business that all business should run with their income and no charity. Currently Railways is running two major SBUs e.g. Passenger and Freight. Both SBUs are having different level of cost and revenue.