Why Indian railway is always in loss?

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Why Indian railway is always in loss?

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’ …

Why are trains so crowded in India?

Artificially low fares attract millions of Indians to take trains over other forms of transport. The same subsidies also burn a hole in railways balance sheets leading to under-investment in new trains and routes. The result is dangerous overcrowding.

Is Indian Railways making losses?

Union Minister Raosaheb Danve on Sunday said that the Railways has suffered losses to the tune of ₹36,000 crore during the coronavirus pandemic, and termed goods trains as the real revenue generators for the national transporter.

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Are Indian trains really that crowded?

Anindito Mukherjee/Reuters India has the second largest rail network in the world. That, combined with the fact that 23 million passengers a day ride its rails, help to explain why its trains are so overcrowded that you can often see passengers hanging out the side.

What is wrong with Indian Railways?

The Railways is particularly vulnerable because around half of the freight traffic comes from carrying coal and India has stopped conceiving new coal-fired power projects to addresses global warming concerns over burning of fossil fuels. There is no long-term future in carrying coal.

Is Railway profitable or not?

Indian Railways with its ongoing transformative initiatives will be “highly profitable” in the coming five to six years, Railway Minister Ashwini Vaishnaw said on Thursday. The minister exuded confidence that the national transporter will have a “superb” business proposition in the coming years.

Why are trains overcrowded?

The growth in train overcrowding is largely attributed to increased passenger demand, and the ‘walk-up’ nature of British railways, in which seat reservations are not required, combined with the inability to run extra trains due to the limitations of the current railway signalling system.

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Why was train so crowded?

Answer: the train was crowded because there were more passengers…………………….

Is Indian Railways in profit or loss 2019?

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

What are the disadvantages of railways?

Disadvantages:

  • Huge Capital Outlay: The railway requires is large investment of capital.
  • Lack of Flexibility:
  • Lack of Door to Door Service:
  • Monopoly:
  • Unsuitable for Short Distance and Small Loads:
  • Booking Formalities:
  • No Rural Service:
  • Under-utilised Capacity:

Is Irctc a loss?

Investors of Indian Railway Catering and Tourism Corporation Limited (IRCTC) lost around 30,000 cr in 2 trading sessions. Investors of Indian Railway Catering and Tourism Corporation Limited (IRCTC) lost around 30,000 cr in 2 trading sessions.

How to reduce the loss of Indian Railways?

In order to reduce the loss and earn profit, railways has evaluated various alternatives relating to rationalisation of passenger fare structure and it is an ongoing process. Railways incurred losses of Rs 33,491 crore on passenger operations in 2014-15 while in 2015-16 the figure was Rs 35,918 crore.

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What are the losses incurred by the railways on passenger operations?

Railways is incurring losses on passenger operations every year, Lok Sabha was told on Wednesday. Railways incurred losses of Rs 33,491 crore on passenger operations in 2014-15 while in 2015-16 the figure was Rs 35,918 crore, Minister of State for Railways Rajen Gohain said in the House.

How much is 19872 lost per trip in Indian Railways?

Let us assume it to 5000 (or) 6000. Now calculate the amount 19872–6000= 13872 is lost per trip . In this train there is no TC . So some people won’t even take ticket at least . They are so many trains running like this in India .

How much money does the Indian Railways make from one train?

Now considering it’s a daily train with two trips per day, and it always run full throughout the year, it’s a stunning Rs 150 Crore (Rs 1.5 Billion) profit from a single train service per year. I know, I know! Rajdhani Express is not the only train in India.