Parliamentary Panel raise Serious Concerns at IR’s Financial Health; observe Rs.61000 Cr Bankruptcy by end 2015

The MPs noted that a similar trend has been observed in passenger business productivity also. For both freight and passenger traffic, system productivity was falling on an annual rate of 1% to 2%. Also it was found that over the years, railways has failed to generate internal resources resulting in its greater dependence on budgetary support and market borrowings

New Delhi: The Parliamentary Panel constituted to examine the financial condition of Railways, headed by the TMC MP and former Union Minister of Railways (under the previous UPA regime) Dinesh Trivedi has expressed serious concerns at the financial health of Indian Railways, even observing that it would declare a bankruptcy of Rs 61,000 crore by the end of 2015.

The 31-member panel headed by Dinish Trivedi which scrutinised grants for the railways observed that operating ratio of the national carrier had deteriorated to 93.6%. It had excess surplus of just Rs 3,740 crore in 2013-14. But under provisioning for depreciation has resulted in piling up of throw forward of works concerning renewal of overaged assets of the order of Rs 41,871 crore.

The MPs noted that a similar trend has been observed in passenger business productivity also. For both freight and passenger traffic, system productivity was falling on an annual rate of 1% to 2%. Also it was found that over the years, railways has failed to generate internal resources resulting in its greater dependence on budgetary support and market borrowings.

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