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| Type | Commercial Circular |
|---|---|
| Topic | freight |
| Currency | Currency not verified |
Keywords: Indian Railways, Revenue, Finance, Revenue management, Finance management, Public entity
IJARSCT
ISSN (Online) 2581-9429
International Journal of Advanced Research in Science, Communication and Technology (IJARSCT)
Volume 3, Issue 2, March 2023
Copyright to IJARSCT
DOI: 10.48175/IJARSCT-8933
820
www.ijarsct.co.in
Impact Factor: 7.301
Indian Railway’s: Finance and Revenue
Management Approach
Mohhammed Wasim Khan1 and Dr. Harish Purohit2
Research Scholar, Department of Commerce and Management1
Associate Professor & Research Guide, Department of Commerce and Management2
Shri Jagdishprasad Jhabarmal Tibrewala University, Jhunjhunu, Rajasthan, India
Abstract: Indian Railways has the fourth largest rail network in the world after the United States, China
and Russia. In the last few decades, traffic has been moving to other transport modes such as roads and air,
which has led to declining rail traffic, and consequently declining revenue generation for the Railways.
Deteriorating finances of the Railways have translated into lower investment in infrastructure, poor
infrastructure maintenance, and poor services. Poor infrastructure has also had serious implications in the
form of train accidents. The Comptroller and Auditor General of India conducted a compliance audit for
the year 2016-17, which has been tabled in Parliament. In this context, the note looks at the Railways
finances and challenges to financing, the Railways infrastructure, and the current organizational structure
of the Railways and the reforms suggested to restructure it. In 2021-22, the total revenue expenditure by
Railways was estimated at Rs. 2, 10,899 crore which was an annual increase of 10% over 2019-20. While
the total proposed capital expenditure for 2021-22 was Rs 2, 15,058 crore. This was an annual increase of
21% over 2019-20.
Keywords: Indian Railways, Revenue, Finance, Revenue management, Finance management, Public entity
I. INTRODUCTION
Indian Railways is the largest railway network in the world. It has a revenue base of US$13 billion and employs about
1 million people. The Indian Railway’s annual passenger traffic is over 4 billion passengers per year, making it one of
the largest transportation companies in Asia Pacific region by passenger volume. It is also one of the busiest freight
railways with over 2 million tonnes of cargo transported daily across its network; while its freight earnings contribute
nearly 50% towards its overall revenues (51%). Indian Railways has been ranked the best performing state-owned
enterprise in the country by Center for Public Enterprises at IIM Bangalore.
II. LITERATURE REVIEW
Ankita Singla and Balbir Singh (2020) the researchers concludes that growth of Indian railways is satisfactory for
total investment, total capital, number of passengers originating, number of stations etc. but net revenue receipts and
number of employees employed are showing negative growth.
Asma Khan et. al (2015) the researchers concludes that the total earnings have increased at a faster rate than the total
working expenses during the study period. As far as net profit ratio is concerned, it has showed a rising trend till 2007-
08 and started declining after that showing a poor performance. Similarly, it has been observed that the operating ratio
continuously declining till 2007-08 reflecting a very good performance but after that again started rising showing a
pathetic performance. Hence, it is recommended that the gross earnings need to be increased as well as the working
expenses need to be reduced for improving the Indian Railway operating and net profit ratios.
Richard Mowery (1993) One of the first books on revenue management was written by in 1993 titled “Intelligent
Revenue Managers” which focused on how companies can use their resources more efficiently and effectively to
increase profits. This book was later adapted into an audio series called Intelligent Revenue Management.
William Sahlman (1994), another book titled “The Eco
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