The Hindu Business Line : `Gauge conversion will help cut losses'

Conversion logic
To maintain the current metre and narrow gauge tracks, Indian Railways needs to spend Rs 4,000 crore
To undertake the gauge conversion works for the entire stretch, the Railways needs to spend Rs 7,000 crore
But if the Railways converts all narrow gauge and metre gauge tracks into broad gauge, the losses would go down to Rs 1,600 crore from Rs 3,200 crore every year

New Delhi , Aug. 15

If Indian Railways (IR) converts all its metre and narrow gauge tracks to broad gauge tracks, it is likely to reduce its losses to Rs 1,600 crore per annum instead of the present level of Rs 3,200 crore on these operations. This is based on a study undertaken by Railways.

"As on date, on account of our narrow gauge and broad gauge operations, we register a loss of Rs 3,200 crore every year," said a senior Ministry official adding that Rs 700 crore loss is accounted for by freight operations while the rest of Rs 2,500 crore loss by passenger operations.

Conversion benefits

To maintain the current metre and narrow gauge tracks, Indian Railways needs to spend Rs 4,000 crore.

However, to undertake the gauge conversion works for the entire stretch, the Railways needs to spend Rs 7,000 crore, he said.

"But, if Railways was to convert all narrow gauge and metre gauge tracks into broad gauge, and if we continue getting the same traffic demand on these lines, our losses would go down to Rs 1,600 crore every year," said the official.

As it is, the average turnaround time for broad gauge operations is about 4.75 days where as that for narrow and metre gauge is about 14 days. This is on account of delays caused due to absence of interoperability between different gauges and as Railways loses time in transhipment of goods from the broad gauge to other gauges.

Additionally, several narrow and metre gauge routes, when converted, can serve as alternative routes.

"They would help create additional line capacity," he said.