December 04, 2008

Indian Railway’s steps to increase earnings

Mr R Velu union minister of state for railways said that Indian Railways has introduced a number of schemes like a slew of freight incentive scheme for attracting more rail traffic like
1) Traditional empty flow direction with 30% discount
2) Loading bagged consignment in BoxN with 40% discount
3) Long term special incentive scheme with 20% concession
4) Incremental traffic with 15% discount
5) Lump sum special rates and service level agreement
6) Freight forwarders
7) Two leg freight concession with 15% in busy season and 20% in lean season

Besides, union ministry of railways has been considering individual proposal for grant of freight concession in freight rates to tap traffic. Few proposals are

a) 30% concession of booking of iron ore
b) 50% concession for rice traffic
c) 15% concession for timber waste
d) 13% concession on movement of gunny bale or jute traffic

For passenger traffic, steps taken to increase the earnings are generating additional seating capacity in trains by introducing new trains, reduction of fare of 1st AC and 2nd AC, attaching additional coaches to clear wait listed passengers and introduction of up gradation scheme to upgrade full fare paying passenger to next higher class against available accommodation. As a result of above schemes freight and passenger earning is likely to be increased by 14% during the current year.

The earning from passenger & goods traffic in last 3 years is as under