Parliamentary panel calls for resumption of full-scale passenger train services

A Parliamentary Committee on Railways recommended resumption of full-scale passenger train services duly observing the Covid-19 protocals.

The Standing Committee on Railways, headed by former Union minister Radha Mohan Singh, said that suspending of train services due to Covid-19 lockdown has hit the Railways' earning in passengers segment severely.

The Railways recently said that it has been increasing the number of train services in a graded manner. Already more than 65 per cent passenger trains are running.

The panel also said that the Railways' operating ratio, which detemines the financial health of the sector, has been deteriorating since 2015-16.

"The Committee noted that the traffic receipts on the passenger segment have always been lower as compared to freight traffic. The passenger earnings during 2018-19 were Rs 51,066.65 crore which dropped to Rs 50,669.09 crore in 2019-20. Budget Estimates for 2020-21 were understandably reduced at RE levels from Rs 61,000 crore to Rs 15,000 crore. However, the actuals (upto the end of January, 2021) were Rs 9, 529 crore only due to suspension of Passenger trains during Covid-19," the panel said in its report tabled in Parliament.

Some of the reasons for shortfall in passenger earnings have been stated to be the social responsibility and operation on un-remunerative routes by Railways. The Committee noted that the recent Covid pandemic has also deteriorated the receipts of passenger segment when the passenger trains were suspended for a considerable period, and still the same has not yet been fully recovered, the panel said.

The Committee is of the view that the Railways should consider to resume their passenger services keeping in view the Covid-19 protocols in various states with a view to boost their revenues. They hope that the earnings on passenger segment would gradually improve once the operation of passenger trains are resumed completely.

The Committee said that the tariff policy of the Indian Railways has traditionally followed the principle of cross subsidisation in order to offset the losses incurred in the heavily subsidised passenger and other coaching services through additional revenue from freight movement. It is seen that in such a scenario, overall fare structure of the Railways are unable to generate sufficient surplus necessary for capacity expansion and provision of enhanced amenities.

"Both passenger fares and freight rates have to be demand-cum-market driven and fixed differently for different segments. The Committee, therefore, recommend the Ministry to undertake a prudent adjustment of passenger fares with a view to reduce the burden on freight segment," the panel said.