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Our Bureau

New Delhi , Dec. 9

FACED with a pressure on its top-line, the Railways has worked out an action plan to augment earnings and contain expenditure.

The plan envisages further rationalisation of the freight structure and flexible tariffs to counter the competition from other modes of transport, running of new trains, and extension of various mail and express trains to better serve passengers across the country.

The Railways is faced with falling realisations from freight operations on account of competition from the roads and pipelines sector. To arrest its falling market-share, the Railways had initiated a rationalisation exercise by tinkering with its complex freight classification structure and delegating greater powers to the General Managers to offer discounts to important customers.

But despite its efforts, the profitability of the Railways has been eroded in the first six months of the current financial year with the cargo yield per million net tonne km falling to Rs 49 crore against a budget estimate of Rs 51.50 crore. Although freight traffic in the period increased by 7 per cent, earnings rose just 1.75 per cent.

Accordingly, the cumulative earnings from freight operations fell short of the budget estimates, as per the data for the first six months of 2003-04. Against an overall revenue target of Rs 21,120 crore, the Railways earned Rs 20,365 crore, reflecting a shortfall of Rs 763 crore, according to the figures released by Rail Bhawan recently.

An official release said here on Tuesday that the Railways would delegate greater powers to zonal and divisional level officials, especially in respect of `Station to Station' drive for realisation of outstanding dues.

The action plan also envisages a continued drive against ticket-less travel, better manpower management for improvement of per capita productivity and energy conservation.

The Railway officials have also been instructed to ensure efficient utilisation of assets, reduction in equipment failure, exercise stringent financial and budgetary control through fixation of spending limits.

Finally, the officials have been instructed to exercise austerity in areas of hospitality, publicity and advertisements.

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