Railways' earnings showed 25.51-pc increase in 2022-23 over previous financial year: CAG

Time of India

2 days ago

The Indian Railways earned Rs 2,39,982.56 crore from passenger and freight operations in the financial year 2022-23, reflecting a 25.51-per cent rise over the previous year, the Comptroller and Auditor General (
CAG
) said in its report tabled in both Houses of Parliament on Tuesday.
"This report provides an analytical review of the finances and accounts of the Indian Railways (IR) and is based on the audited accounts for the year ended March 2023," a press note from the CAG said.
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According to the report, in 2022-23, the total expenditure of the
Ministry of Railways
(MoR) was Rs 4,41,642.66 crore, which was 11.34 per cent more than 2021-22.
The report said this total expenditure comprised Rs 2,03,983.08 crore (7.21 per cent more than the previous year) of capital expenditure and Rs 2,37,659.58 crore (15.15 per cent more than the previous year) of
revenue expenditure
.
The ministry incurred around 72.22 per cent of the total working expenses on staff cost, pension payments and lease-hire charges on rolling stock, the press note said.
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Highlighting the Gross Traffic receipts (total earnings from passenger and freight services), the CAG said in 2022-23, it was Rs 2,39,982.56, reflecting a 25.51-per cent increase over the previous year (2021-22).
"The increase in total receipts was mainly on account of an increase in passenger earnings, other coaching earnings and freight earnings. Transportation of coal constituted 50.42 per cent of freight earnings," the report said.
"There was a net surplus of Rs 2,517.38 crore in 2022-23 as compared to a net deficit of Rs 15,024.58 crore during the previous year. The Operating Ratio (OR) was 98.1 per cent in 2022-23 against 107.39 per cent in 2021-22. Indian Railways generated a net surplus during 2022-23 as compared to a net deficit in 2021-22," it added.
The CAG has observed that though there was a decrease in the loss on operation of passenger and other coaching services as compared to the previous year, the loss of Rs 5,257.07 crore in passenger operations was left uncovered during 2022-23.
"The profit from freight traffic was utilised to cross-subsidise the loss on operation of passenger and other coaching services," it said.
"Unsanctioned expenditure of Rs 6,483.71 crore, involving 1,932 cases, was incurred by MoR, which was 1.05 per cent of total expenditure during the year 2022-23," it added.
Talking about the financial performance of the public sector enterprises of the Indian Railways, the report said the investment of equity and loans in Railway Public Sector Enterprises as on March 2023 was Rs 5,38,869.02 crore, which comprised a paid-up capital of Rs 61,351.33 crore and long-term loans of Rs 4,77,517.69 crore.
"The Government of India contributed Rs 49,027.29 crore (79.91 per cent) in the paid-up share capital of Railway Public Sector Enterprises. The remaining paid-up share capital of Rs 12,324.04 crore was contributed by financial institutions (5.05 per cent), central government companies (5.03 per cent) and state government/state government companies (10.01 per cent)," the press note said.
"The net profit of the Railway Public Sector Enterprises had shown an increasing trend and had increased from Rs 6,146.29 crore in 2018-19 to Rs 12,056.61 crore in 2022-23," it added.
The audit found that of the total 45 Railway Public Sector Enterprises, 33 earned a profit (of Rs 12,145.97 crore) during 2022-23, which included 12 railway companies, 10 subsidiaries, five joint ventures (JVs) and six special purpose vehicles (SPVs).
"Out of 33 profit-earning Railway Public Sector Enterprises, only seven Railway Public Sector Enterprises (six railway companies, one subsidiary) had declared a dividend as stipulated in DIPAM instructions of May 2016, which provided that every CPSE would pay a minimum dividend of 30 per cent of profit after tax or 5 per cent of net worth, whichever is higher," the press note said.
The CAG also reviewed budgetary and accounting controls in the accounts department of the North Western Railway, South East Central Railway and South Western Railway, and said the electrical department of construction organisation of the NWR raised a demand for Rs 5 crore for the Revised Estimates of 2022-23 against the Ratlam-Dungarpur via Banswara New Line Project frozen in September 2019 -- the demand that was cleared by the accounts department of the NWR as well as the Railway Board and funds were allotted to a frozen project.
"Up to March 2023, North Western Railway (NWR) and South Western Railway (SWR) incurred expenditure of Rs 3,142.49 crore against four works completed but not closed. The expenditure exceeded the revised sanctioned estimate by Rs 743.7 crore (31 per cent)," the press note said.
"In NWR, the productivity tests of seven projects completed during the period 2011-12 to 2016-17, which were due between 2020-21 and 2022-23, had not been conducted as on date of audit (July 2023). Thus, the achievement against anticipated earnings/savings in working expenses when the proposals for the projects were embarked upon, could not be assessed," it added.