Concessions cost Rlys Rs 6.6k cr in 3 years

Various concessions on passenger fare and freight charges have cost the Railways a whopping Rs 6,636.44 crore in the past three fiscals.

The Railways had to forgo revenue of Rs 3,278.60 crore due to concession in passenger fare between 2011-12 and 2013-14 while another Rs 3,357.84 crore was lost as rebate on ferrying charges.

The amount of concessions has been growing every fiscal, according to the Explanatory Memorandum of Railway Budget tabled in Parliament on Thursday.

The Railways forwent Rs 920.88 crore in 2011-12 and Rs 1,044.77 crore in 2012-13. In the last fiscal, it grew to Rs 1,312.95 crore, which was an increase of 25 per cent from 2012-13.
Among the passenger categories, senior citizens topped the list of availing concessions with the Railways forgoing Rs 2,228.52 crore, which is 69 per cent of the total passenger concession.

While the Railways forwent Rs 614.98 crore from senior citizens in 2011-12, it grew to Rs 932.73 crore last fiscal. Senior citizens were followed by physically challenged persons and patients.

The Railways also provides concession to students, journalists, sportspersons and war widows among others.

Rebate on freight charges

The major chunk of concession on freight charges was on short-lead concession for traffic booked up to 100 km. Last fiscal, the Railways forwent Rs 929 crore under this head while it was Rs 848.43 crore in 2012-13 and Rs 612.02 crore in 2011-12.

While the Railways forwent Rs 2.61 crore under the head of “inflation concession on booking of foodgrain for domestic use and kerosene” in 2011-12, it did not lose any money in this connection in the past two fiscals.

Freight incentive schemes also cost the Railways. Another head under which the Railways provided concession was on ferrying salt, which cost Rs 58.32 crore.