Increase of total capital by hefty 70.38% from Rs 1,83,488 crore as on 31 March 2013 to Rs 3,12,635 crore as on 31 March 2017 coupled with traffic decline of 3.54% from 7,27,610 million Net Tonne Kilometres to 7,01,813 million Net Tonne Kilometres, is a very bad symptom. It is clear indication that funds are not spent/ invested in the right direction.
(1) Most of the new line projects, Guage conversion have negative or very low rate of return. So more the investment more the losses. Presently DFC appear to be most important venture of IR, and IR need to take up construction of more DFCs.
(2) IR...
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could have freezed the projects with lesser financial and operational significance and quickly completed the better ones and reaped the financial benefits.
(3) Huge investment in deploying much costlier LHB rakes is not giving any benefit. IR could have charged 10-15% higher base fare for LHB coaches with superior asthetics, potential, riding characteristics, Generator cars and interiors. Instead it opted for flexifares which have killed the rising popularity of profitable premium trains.
(4) Increasing the carrying capacity of all the trains esp. the branded ones like Durontos, DD Express, Humsafar etc to maximize the revenue with minimum incremental costs. Eg. Adding non ac LHB coaches to fully ac Durontos/Shatabdies operating with lesser number of coaches. IR has done a right step by adding ac sleeper coaches to failed Yuva trains. Similarly Humsafar may have ACII coaches, AC DD may have single deck EC, IIS or suitable non ac DD coaches to increase the carrying capacity.
(5) Controlling the salary & pension cost, which currently is the real tension of IR which is not discussed much due to political reasons. This cost have jumped from a level of about 50-55% to about 65-70% of total revenue after implementation of 7th pay commissions. This level is totally untenable. End of train telemetry, Konkan Railway system of track maintenance, use of automation for accurate monitoring and operation, automatic and safe signaling systems, focusing on core railway activities and hiving off schools, hospitals etc to concerned govt departments are necessary.
(6) Rationalisation of subsidy to manageable levels through increase in all the classes, especially the general class & MST fares is a must.