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Construction : Web Exclusive | May 2013 | Source : Construction Update

Railways takes steps to strengthen financial position

Railways have taken various measures to improve its financial condition, which inter alia, include rationalization of the fare and freight structure taking into account the cost of inputs, introduction of dynamic Fuel Adjustment Component (FAC) in its tariff, proposed setting up of rail Tariff Regulatory Authority (RTRA), prioritizing the projects for better resources utilization, setting up a new debt service fund for timely discharge of loan liabilities etc.

There are no losses on Railways since the Operating Ratio budgeted in 2013-14 is 87.8 percent. Nevertheless, Railways have initiated the following cost cutting measures: 1) Strict resource management to ensure that expenditure does not exceed resources; 2) Prioritization of works for optimal use of scarce resources; 3) Improvement in staff productivity through better man-power planning; 4) Better asset utilization;5) Improvement in inventory management; 6) Optimization of fuel consumption;6) Tight control over expenditure in areas such as contractual payment, overtime allowance, purchase of material etc;

Further, it implemented the guidelines on expenditure control and management circulated by the Ministry of Finance. The railways is rigorously monitoring expenditure with respect to the monthly budget proportions, etc.

This information was given by the Minister of State for Railways Adhir Ranjan Chowdhury in written reply to a question in Rajya Sabha.

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