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For The 2nd Consecutive Financial Year, The Revenue Of Indian Railways Remain Off Track

Due to the impact of the Covid-19 pandemic, revenue generated by the Indian Railways remained weak for the second consecutive year. In comparison to 2019-20, the railways lost revenue worth Rs 35,421 crore in 2020-21, in the sale segment of passenger tickets.

In comparison to the pre-pandemic financial year, the revenue remained Rs 10,000 crore short of the halfway mark after eight months of FY22. The other income avenues of the railways have also been impacted by the reduced train travel and social distancing norms.

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In 2020-21, the railways earned Rs 15.48 only by the sale of platform tickets, whereas in 2019-20, the railways earned by sales of platform tickets Rs 166.87 crore.

It was said that the earnings from the current financial year’s platform ticket sales had been improved, till September 2021, the sales increased to Rs 60.79 crore. However, the top rail ministry officials said that it would be difficult to reach the pre-pandemic level.

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The first two waves of the Covid-19 pandemic curtailed passenger rail operations; however, during the financial year helped in reducing the revenue forgone due to concession on passenger fares to various categories of passengers.

Due to the concessions in 2019-20, the railways took a hit of Rs 2,059 crore. However, the subsidy cost of passenger tickets was only Rs 38 crore in 2020-21.

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From the passenger ticket sales in 2019-20, the railways earned Rs 50,669.09 crore, in 2020-21 Rs 15,248.49 crore, and as of September, the railways earned Rs 15,434.18 crore.

Last year, in March, due to the pandemic outbreak, the Railways stopped the passenger services as the government wanted to avoid the spread of the coronavirus. From May 2020, in a phased manner, the Rail services had resumed gradually.

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Most of the trains that continued to run were operated as ‘special trains.’ In order to recover the revenue due to low volumes, the fare of the passenger tickets was higher than the regular passenger tickets. Later, all the concessions were suspended.

In March 2015, in order to avoid overcrowding, the Ministry of Railways had given the authority to Zonal Railways to increase the rate of passenger tickets beyond Rs 10.

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This year, due to agitation by farmers and other organizations, the Railways incurred a loss of Rs 36.87 crore.

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