Railways cut down Expenditure on Repairs, Replacement of Assets

Faced with shortfall in earnings, railways is cutting expenditure in non-core operations like repair and replacement of assets and staff amenities to tide over the situation.

However, the public transporter is expecting Rs 600 crore more as budgetary support from the government for carrying out national projects in the northeast.

There is a shortfall of Rs.4,000 crore from the revenue target during April-September this year and steps are being taken to match the expenditure with earnings, Railway Financial Commissioner (FC) Rajendra Kashyap said here today.

Despite the hike in passenger fares, there is a shortfall of Rs.3,000 crore in the earnings due to decrease in number of travelling passengers during the six-month period in the current fiscal.

In addition, the earnings from freight also dropped by Rs.1,000 crore during the period because of decline in goods movement in the long distance segment.

“We are going slow on certain areas such as repair and replacement of assets. However, the core operation is not affected and the expenditure cut is applicable only on peripheral operation,” Kashyap, who assumed charge yesterday, said.

Repair and replacement of assets include track renewal and replacement of signalling system.

Besides, there is a cut in the expenditure on staff welfare and amenities by the railways, he said.