NEW DELHI: Failing to pick up despite all efforts, Indian Railways has decided to reduce its revenue target from non-fare sources by one-third for the year 2018-19 and there are concerns about meeting the trimmed target.
Railways had kept a budgetary estimate of Rs 1,200 crore for financial Year 2018-19 but it has now been reduced to Rs 450 crore. This comes at a time when Ministry of Railways has been banking upon the non-fare revenue (NFR) to balance its increasing operational costs.
Railway Minister Piyush Goyal during an interaction with media had said that non-fare revenue will help in balancing the over-shooting operation ratio, which is an indicator of financial health.
According to a senior railway ministry official, the decision to reduce targets was taken as zonal railways expressed their inability to meet the target. “The zonal railways want even further reduction of target from Rs 450 crore. They (zonal railways) are in various stages of floating/awarding of 350 tenders worth Rs 250 crore,” said the official.
Railways had missed budget targets on non-fare revenue in the last financial year too. Against the target of`14,000 crore in 2017-18, it earned `8,000 crore under non-fare and this mostly came as parking fee, sale of scrap and PSU dividends.
Railways had initially planned to earn Rs 39,000 crore over a period of 10 year from non-fare sources. However, after poor response from market, the tendering system was decentralized to zonal railways in 2017.
Chairman Railway Board Ashwani Lohani has written to all zonal railways to make realistic assessment of the likely additional revenues.