Indian Railways Asked To Rationalise Freight And Passenger Fares Over Losses

A parliamentary panel raised concerns over the losses incurred by the Indian Railways' passenger services, especially due to its social service obligations, and suggested that the national transporter rationalise both freight and passenger fares. According to the official statement, the Standing Committee on Railways on the 'Demands for Grants (2020-21), which submitted its report in the current session of Parliament, stated that there is a need to revisit the components that constitute social service obligations of the national transporter. (Also Read: Budget 2021: Operating Ratio To Improve To 96.96%, Says Railway Board Member )

It said that the operational efficiencies of the railways in both freight and passenger business have to be leveraged to a greater extent so as to retain the customer base and increase revenues. Indian railways authorities in its response, said the National Institute of Public Finance and Policy or NIPFP has been engaged to carry out a study on 'Developing a mechanism for computing the value of Social Service Obligations (SSO) being borne by Indian Railways in 2017'.

Meanwhile, the operating ratio of the national transporter is expected to improve to 96.96 per cent by the end of the current financial year amid the COVID-19 crisis, according to the Railway Board.