Coal News We love to talk!

FEB 09 2017

Indian Railways looking at fuel optimization as part of profit earning strategy

  • Economic Times, ET Bureau / Hyderabad
  • Created: Thu 09th FEB 2017

Indian Railways is looking at optimizing its fuel consumption including diesel and electricity usage as part of a larger strategy to control expenditure, boost revenue and start earning profits. Other expenditure control measures include economy and austerity measures, improved manpower planning, better asset utilization and inventory management.

“Steps for making Indian Railways a profit earning entity include measures for enhancing earnings on the one hand and controlling avoidable revenue expenditure on the other,” minister of state for railways Rajen Gohain said in a written reply in Lok Sabha.

Indian Railways is the largest consumer of electricity and diesel in India. Railways’ total energy cost stood at a mammoth Rs 31,220 crore in 2014-15. This included Rs 10,436 crore towards electric traction, Rs 18,536 crore towards diesel traction and Rs 2,198 crore towards supply of electrical energy for railway stations, offices and workshops.

Gohain said the revenue enhancing measures being worked upon include targeting progressively higher traffic throughput, effective marketing strategies t capture more traffic, creation of additional capacity and optimum utilization of existing railway infrastructure.

The rail ministry also plans to boost earnings through enhancing productivity and efficiency, improving passenger interface, periodic rationalization of fare and freight rates and focussing on increasing the share of non-fare revenue sources in Railways’ earnings.


RAILWAYS TOTAL Diesel Energy Minister of State Electricity Consumer India

Related News

  • ET Awards 2015: Need to look at alternative mechanisms, says Piyush Goyal  Read more
  • Spot power prices soar to 10-yr high  Read more
  • Solar targets: High time government takes cognizance of huge potential of BIPV  Read more
  • 50 lakh LPG connections for BPL families in Bihar: Dharmendra Pradhan  Read more
  • PSUs to be roped in to manage stressed assets in power, steel and shipyards: Jaitley  Read more
  • Respite for industries as Tamil Nadu lifts power cut  Read more
  • Global coal power plans shrink 14% in 2016, led by China, India  Read more
  • Off-grid power firms fret as Saubhagya lines up every home  Read more
  • Rajasthan, Haryana, Chhattisgarh discoms major gainers under UDAY  Read more
  • SWPL asks Goa pollution board for fresh consent letter  Read more