IR is losing about 35000 Crore Rs per annum from passenger transportation because it is charging fare lower than the actual cost of operations.
There are 2 critical factors which are responsible for these losses:
(1) the revenue collection due to lower fares charged esp. in non ac class of travel so newer means are every day being devised and implemented like dynamic fare, sharp increase in cancellation charges etc.
(2)...
more... higher resources are being consumed due to inefficient use of resources
The factor no.1 is always highlighted where as the factor no.2 which is more important and better for passengers/ IR as well as nation is not much talked about.
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(DECREASE EXPENDITURE by REDUCING UNWANTED EXPENDITURE)
Proper utilisation of inputs is a must to have a proper output which is cost effective and safe rail transportation. It is of utmost importance to look for the ways to reduce the inputs requirement through:
utlisation of manpower,- thru organisational restructuring, modern work practices using cost effective & state of the art technologies
utlisation of Movable assets trains(rakes) etc- rationalisation of trains to optimise the passenger carrying capacity & revenues
utlisation of Stationary assets-stations,land etc,- commercialisation of space for advertisement, offices, hotels, restaurants, shopping etc
utlisation of revenue Fund -cost effective purchase of spares/raw materials,
utlisation of Capital Fund-proper selection, and implementation of projects to ensure higher market share with profitability
raising of cheaper fund/loans from market, or thru private sector/ state govt participation.
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(INCREASE REVENUES RATIONALISATION OF FARES, and PROPER SUBSIDY MANAGEMENT)
- Increase the extremely low fares(non ac) and decrease the too high fares (Suvidha/PT/Flexi) by benchmarking them with their competitors i.e. buses/ airline operators.
- Targetting to only the needy paxs and limiting the maximum subsidy a person can avail. Tickets should be sold at full fare and the subsidy amount can be transferred to the adhaar linked bank account. There should be a maximum limit to a rail related subsidy availed by a person per annum and also a limit to max. subsidy of any kind availed from Govt.
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(INCREASE REVENUES by INNOVATION, & INTRODUCTION OF PROFITABLE VALUE ADDED SERVICES)
- Innovation is the key to the future of IR.
- Even after 70 years of gross mismanagement, IR could bounce back if it starts innovating and implementing the right policies in right way.
- Huge volume of traffic available is the strength of IR, which should be exploited to the hilt by developing huge volume, cost effective, railway technology.
- Developing RORO, Rail-Roader modes to catch the road traffic without harming the road sector.
After acquiring 160-200 kmph coach/loco technology, a lot of R&D efforts are required to adopt it to suit the requirements of India like:
- Developing a reliable Self generating/ HOG version of LHB coaches/Locos
- Developing high capacity and low cost AC DD chaircar, AC DD sleeper coaches with with innovative layouts to suit the requirement and liking of people. Efforts are needed to motivate subsidy availing paxs travelling in non ac coaches, to switch over to, no-profit no loss ac class paxs in these high capacity/ high speed(130/160kmph) ac coaches.
Success Mantra for IR is INNOVATE, INNOVATE and INNOVATE and keep creating faster, safer and cost effective transport services.
