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Do Indian Railways make profit?

Posted on July 13, 2021 by Author

Table of Contents

  • 1 Do Indian Railways make profit?
  • 2 How does Indian Railway earn money?
  • 3 Is Indian Railway in loss or profit?
  • 4 How much Indian Railway earn in a day?
  • 5 How much do railroads make?
  • 6 Which contributes maximum earning in Indian Railway?
  • 7 Does the Indian Railway run in profit?
  • 8 How much does it take to break even in Indian Railways?

Do Indian Railways make profit?

Railways registers 70\% loss in passenger earnings; sees profit in freight. The total passenger revenue between the period April 2020 to February 2021 is Rs 12,409.49 crores as against the Rs 48,809.40 crore for the corresponding period the previous year.

How does Indian Railway earn money?

Rail freight accounted for the highest share of the total railways revenue across India with approximately 65 percent in financial year 2020. That year, around 1.2 billion metric tons of freight was carried by the Indian Railways. Coal was the major commodity being carried across the country.

Do railways make a profit?

How much profit do train companies make? On average train operating companies make two percent of profit, however not all train operators make a profit, and they only make a profit if they run their franchises successfully, which means attracting more passengers to travel and by offering a good service.

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What is the main source of earnings of railways?

Solution(By Examveda Team) Freight is one of the major sources of income for Indian Railways.

Is Indian Railway in loss or profit?

The Railways suffered a loss of Rs 38,017 crore in the passenger segment in the last fiscal due to the coronavirus crisis, but some of what it lost was compensated by the goodwill it earned by running Shramik Special trains, ferrying essentials and through innovation in freight movement which helped surpass last years’ …

How much Indian Railway earn in a day?

The national transporter earns about ₹145-150 crore per day ferrying passengers across India, translating into annual revenue of about ₹53,000 crore. While goods trains remain operational, they are running at 60 per cent capacity due to demand slackness from the closure of industries/factories.

Is Indian Railway in profit or loss?

Indian Railways suffers loss worth Rs 38,017 crore in passenger earnings – BusinessToday.

How much revenue do railroads make?

The combined revenue of Class I railroads equaled $67 billion in 2017. [3] Association of American Railroads, “Overview of America’s Freight Railroads ,” March 2020. [4] Association of American Railroads, Railroad Facts, 2019 Edition, 3. [5] Railroad Facts, 2019 Edition, 3.

How much do railroads make?

Economic Impact: An October 2018 study from Towson University’s Regional Economic Studies Institute found that, in 2017 alone, the operations and capital investment of America’s major freight railroads supported approximately 1.1 million jobs (nearly eight jobs for every railroad job), nearly $219 billion in economic …

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Which contributes maximum earning in Indian Railway?

Goods Traffic Earning contributes the maximum earning in Indian Railways. In financial year 2017 Indian Railways total traffic earning was of Rs. 1.65 lakh crore, which was an increase of Rs. 10,000 crore from last financial year.

Who is Irctc owner?

Indian Railway Catering and Tourism Corporation (IRCTC) is under the ownership of Indian Railways, Ministry of Railways, Government of India that provides ticketing, catering, and tourism services for the Indian Railways.

Is Irctc a profit or loss?

in Q1. The Indian Railway Catering and Tourism Corporation (IRCTC) on Thursday posted a net profit of ₹82.5 crore for the first quarter ended June against a loss of ₹24.6 crore in the year-earlier period. Total revenue grew to ₹257.94 crore from ₹156.48 crore. …

Does the Indian Railway run in profit?

Approx 40\% of earnings of Indian Railway goes in paying towards the salaries of its 13 lakh employees. The other parts are spent towards running and maintenance cost. Apart from the above maintenance costs, the IR also bears the new construction project costs from its own earnings. So, the answer is: Yes, IR runs in profit!

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How much does it take to break even in Indian Railways?

Revenue earned is 3 lakhs. A basic crude back of the envelope calculation itself works out a loss statement of nearly 99.8\%. To break even at current levels it would take around 600 trips ( about 1200 days) to get back my revenue and capital ( not profit ). Hope you understand why the Indian Railways is running in loss now.

How big is the railway system in India?

It is the operator of India’s national railway system. In financial year 2020, the railway network across the country was around 68 thousand km of length, the fourth largest in the world in terms of size. Its revenue was around 1.75 trillion Indian rupees that same year. Of all broad-gauge routes, 71 percent were electrified.

What percentage of Indian Railways are electrified?

Of all broad-gauge routes, 71 percent were electrified. That year, the passenger traffic of railways amounted to 8.1 billion, while around 274.5 million passengers travelled domestically via air in India. Rail was the preferred method of travel among domestic travelers due to its cheap fare.

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