Issues Highlighted in the Report

 Second Report of the Standing Committee on Railways (2024-25) Presented in the Lok Sabha

The Second Report assesses the Government's response to the recommendations made in the First Report regarding the 'Demands for Grants (2024-25)' of the Ministry of Railways.

Key Issues Highlighted in the Report:

• Low Net Revenue: The revenue remains low due to high subsidies on passenger fares. For example, passenger revenue (₹80,000 crores) is considerably lower than freight revenue (₹1,80,000 crores).
• Insufficient Capital Expenditure: Indian Railways heavily relies on government budgetary support, with limited contributions from extra-budgetary resources (EBR). For instance, the EBR contribution in 2024-25 is only ₹10,000 crores.
• Low Average Speed of Freight Trains (25.14 km/h): This impacts the efficiency of freight transportation.
• Land Acquisition Delays: Delays in land acquisition are hindering the timely completion of critical infrastructure projects, such as the laying of new railway lines.
• Slow Modernization of Stations: The progress of station modernization is slow, with many stations still lacking basic amenities.
• Other Issues: Insufficient non-fare revenue generation, slow progress in electrification, and energy efficiency improvements.

Recommendations:

• Implement dynamic pricing models and explore alternative non-fare revenue sources, such as advertising and station leasing.
• Set higher Public-Private Partnership (PPP) targets to reduce reliance on government funding.
• Accelerate the implementation of Kavach on all high-density routes and upgrade signaling systems.
• Speed up the construction of Dedicated Freight Corridors (DFCs).
• Collaborate with state governments and local MPs to expedite the land acquisition process.

Steps Taken by the Government:

• Flexi-Fare Rationalization: Adjusting fare schemes to optimize revenue and passenger flow.
• e-Auction Policy: Promoting commercial earnings and contracts through e-auctions.
• New Train Launches: Introduction of Vande Bharat and Amrit Bharat trains for enhanced passenger comfort.
• Alternate Accommodation: Providing flexible travel options through the VIKALP scheme.
• Freight Connectivity: Improved freight connectivity via the Gati Shakti Cargo Terminal Policy.

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