As it heads to complete the world’s largest online recruitment process to induct almost 1.5 lakh people, the Railways has already announced its intent to kickstart the process to recruit another 4 lakh people over the next two years.
The Railways, the nation’s single largest employer, has, till date, borne its staff expenses from the revenues it earns by hauling billions of freight cargo and people across the country.
For the next financial
Goods bear burden
The Railways expects to cross the ₹2-lakh-crore mark in total earnings in FY20, as per the interim Budget. Of the ₹2,05,500 crore, it expects to get ₹56,000 crore, or 27 per cent, by chugging people.
It expects to close the present fiscal with total earnings of ₹1,88,800 crore, exceeding the budgeted target by ₹2,800 crore. Of this, earnings from freight will provide the biggest chunk of ₹1,21,336 crore (up ₹14,476 crore against the budgeted estimates). To attract freight, it has allowed private investment in several types of wagons, and embarked on an RFID project to enable customers to trace each wagon.
For passengers, the Railways has widened choices in several areas — mechanisms through which they can book tickets, insurance bundled with tickets, apps to order food, etc. “Railways has removed all unmanned level crossings on broad gauge network, contributing to safety,” announced Interim Finance Minister Goyal, who is also the Finance Minister.
Changing preferences
The preference of passengers is changing — more than half of ‘reserved’ passengers now book tickets online. Some 9,000 passengers a day use their phones to book food. This is a small number. Railways’ price-sensitive customers continue to opt for the cheaper food provided by IRCTC — despite constantly complaining about the taste and quality. The national transporter has also started providing billing machines for food, hoping to bring down complaints about overcharging.
To deal with competition, the Railways has tapered its dynamic fare policy. The reserved passenger segment has seen 7 per cent growth. It is focussing on moving electric trains trains to attract short-distance traffic. Railways is also improving services for the unreserved, suburban segment by introducing AC trains in Mumbai.
In the meantime, its operating ratio — indicating money spent to earn each rupee — continues to be under stress. While Goyal said it will improve across successive years, the increased hiring does raise some concern.
Lower diesel consumption
Fuel expenses, which went up this year, are further expected to go up again next year.
As Railways continues to progressively electrify its networks expecting continuous electrified sections, it expects a significant drop in the quantity of diesel consumed by mid-next year, said Ghanshyam Singh, Member-Traction, Railway Board.
At present, the largest chunk of Railways’ working expense — 70 per cent — is used to pay its staff, followed by about 27 per cent towards fuel cost, and 9 per cent as interest outgo or lease rentals.
With more than 1.5 lakh people joining the rolls next year, the ratios could change.