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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.

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