Never miss a great news story!
Get instant notifications from Economic Times
AllowNot now

You can switch off notifications anytime using browser settings.
Stock Analysis, IPO, Mutual Funds, Bonds & More

Railways unable to cope with demand from passenger segment

The Indian Railways is now looking at a 'quantum jump' in infrastructure.

, ET Bureau|
Jul 17, 2019, 12.45 PM IST
The Indian Railways is now looking at a 'quantum jump' in infrastructure.
The Indian Railways is unable to meet the demands from the passenger segment, VK Yadav, Chairman Railway Board said today, pointing out the capacity constraints of the national transporter.

Yadav said that the loss of revenue in the passenger segment is adversely affecting the freight services.

"I have no hesitation in accepting that we are not able to cope up with the demand in the passenger segment, and even in freight," Yadav said at the CII Rail Connect conference here on Wednesday.

Yadav said that land acquisition and forest clearances remain the biggest roadblocks for completion of projects.

"If we talk in the real business sense, we are losing money in the passenger segment and that is creating problem for the freight business," Yadav added.

The Indian Railways is working on doubling, tripling of lines which will be done in a planned manner, to meet the capacity constraints, Yadav told ET on the sidelines of the event.Yadav also said that the eastern and western dedicated freight corridors, expected to be complete by next financial year, will help address the issue.

Yadav said that the national transporter is cross-subsidising the loss by increasing the freight rates.
"If we have the freedom to fix up the rate of passenger fares, we can even rationalise freight rates," Yadav said.

The Indian Railways is now looking at a 'quantum jump' in infrastructure and is trying to capture the loss of opportunity in the last 25 years, Yadav said.

In the Budget for 2019-20, Finance minister pegged the investment in railways infrastructure at Rs 50 lakh crores between 2018 and 2030.
Add Your Comments
Commenting feature is disabled in your country/region.
Download The Economic Times News App for Quarterly Results, Latest News in ITR, Business, Share Market, Live Sensex News & More.

Other useful Links

Follow us on

Download et app

Copyright © 2019 Bennett, Coleman & Co. Ltd. All rights reserved. For reprint rights: Times Syndication Service