1. Sale
At present, the PF tickets are issued to the public at the
rate of Rs.5/- to facilitate them to enter into the station premises and to see
of their friends and relatives who board / alight from the trains. This charge
is uniform to all categories of stations, all over Indian Railways. By merely
purchasing the PF Ticket for Rs.5/-, the public is able to relish and enjoy the
various facilities available inside the Railway Premises, causing lot of
inconvenience to other genuine passengers. This also leads to more congestion
at stations as well as increased maintenance and cleaning work load for the
Railways.
It is, therefore, now suggested
that the Railways should price the PF Ticket Rates differently, depending upon
the value-added service available at the stations. It is also suggested that it would be better for the Railways that
if the public are buying the PF Ticket to see of their friends and relatives, the ticket issuing software should have a
facility to print the Train Number in the PF ticket itself. This
will help the Railways to evacuate such persons from the station premises, as
soon as the Train Departs.
Further, the Platform Permit Tickets should be of two
types, viz. (1) to issue to those persons who visits the Station to see of
their friends / relatives; and (2) to issue to those persons who wants to
utilize the various services provided at the Stations. These types of PF Entry Tickets have to be
issued for a limited time period, depending upon the purpose for which it is
issued. The second category of Platform Permit Tickets should be priced at a
higher premium in the form of ‘value-added’ services by the Railways. As and
when the Train departs from the Terminal or stopping stations, the exit points
should be checked through automated systems, whereby the validity of the PF
Tickets, available with the passengers are verified.
2. Provision of various concessions to the
Passengers:
As far as passenger traffic is concerned, several types of
concessions are extended by the Railways to different category of persons –
say, people from down-trodden to highest echelons of society. Any concessions given to the passengers
should be adequately compensated by the respective State / Central Ministries,
including the various concessions for students. the passenger wishes to travel
in Mail / Express Trains, for want of sufficient suburban / passenger trains,
he should be allowed to travel in Mail / Express Trains on payment of
additional premium charges. The provision of concessions on Season Tickets
should be provided to passengers who travel in II Class only and NOT for First
Class.
3.Face-lift of Station Entrance:
In stations covering business areas, temples or educational
institutions or IT Sector Companies, the architectural design to the front
elevation of the stations shall be provided by the sponsor companies or the
respective Devastanam Boards / Temple
authorities / Educational Institutions. The same face-lifting of stations can
also be extended to other Corporate Companies as a part of their Corporate Social
Responsibility.
4.Provision
of ATM facilities at the stations:
At present, the license
fee for the ATM locations are charged at a uniform rate irrespective of the
vantage position, in which the same was located in a station, without
considering the utility index. Further, the existence of the ATM of a
particular bank not only serves as a means of advertisement for the bank but
also as an automated unit attracting more customers, thereby enabling improving
their business as well as reduction in staff cost. In order to generate more revenue to the
Railways, the IR should adopt differential pricing policy, while fixing the
license fee for the ATM of the Banks, based on the location in which it is
being permitted.
5.Model of Revenue Estimation and Generation by
Thiruvananthapuram Mono Rail:
From the detailed
project report of the Thiruvananthapuram Mono Rail Project, it is seen that the
Revenues that is estimated to be generated, after the commission of the
project, has been arrived at in the project report based on the percentage of
trip distribution for each distance slab (to the entire length of the Mono Rail
Project).
6. Earnings through Commercial Publicity:
(i) At present, the contracts are awarded
by the Divisions to various Advertising Agents for display of the
Advertisements / Hoardings at station premises, duly collecting the License Fee
fixed. The collection of such Licence Fee are ensured by the Divisions only
through payment at major stations (i.e. like MAS or MS) even though the actual
display of advertisements / hoardings are at other authorized stations.
(ii) To make a station as a Profit Centre, it
would be necessary that the earnings generated through Commercial Publicity
should be directly allocated to such stations to decide whether the station is
profitable one.
(iii) Similarly, other suggestions which can
add to earnings maximization on account of value additional services provided
by Railways are given below.
7.
Fare structure for special trains
Special services
justify payment of premium rates. Being a value added service a separate
surcharge may become necessary along with the normal fare to facilitate revenue
enhancement. This surcharge may be varied for different distance groups and
classes. Demand exists to additionally charge another 100% of the extant fares,
including Tatkal charges. The special fare dispensation can be applied to all
festival and seasonal specials. This might require strengthening of the dynamic
tariff policy, after systematic study of the market potential. Ideally, the
fare rise aimed can be up to 200% in special cases of demand.
8.
Distance restriction
To discourage
short distance travelers and possible loss of revenue, Railways have to place
suitable distance restrictions to ensure accommodation for the more needy
passengers heading for distant destinations. This will also improve IR
earnings.
9.
Value addition in services
The value
addition concept could be strengthened by adherence to punctuality and
enhancement of passenger comfort levels. For example, provision of catering
services including serving dinner by IRCTC may be got extended to specials.
Issue of linen could also be entrusted to quality conscious contractors so as
to make journey in specials more pleasant.
10.
Marketing arrangements
Dates of specials
and timings shall be in place well in advance. One reason for low occupancy of
special trains is the late announcement of specials. Publication of a separate
Time tables for special trains could be considered for summer, winter and also
for festive seasons to enable planning of the journey in advance.
11.
Special trains for specific groups
As of now, some
Railway specials are being run for specific groups of passengers. As passengers
outside the group are not allotted accommodation in those trains, the
chargeable fare shall be in accordance with the special tariff rules prescribed
for special trains carrying specific groups.
12.
Concession tickets and Tatkal Quota
Special Tariff
dispensation for special trains may have to provide for exclusion of concession
travel in such trains. The provision of tatkal quota may also have to be fixed
as high as possible depending upon passenger demand.
13.
Terminal costs
Fare for
Specials which start and terminate at intermediate stations shall include the
cost of empty run from and to the train formation station which has terminal
facilities for maintenance. Therefore, the chargeable distance for those trains
shall be from the Train formation station.
As running of
special trains are over and above the normal services, a part of the earnings
as well as centralized costs on specials shall be added to the suggested
earnings / cost profile of the subject cost centre stations. As the additional
cost / earnings are to be shared by several stations en-route, a suitable factor
formula based on additional man hours spent and materials consumed shall be put
in place. The additional earnings thus computed have to be reckoned while
comparing the earnings with costs.
14. Reduction in Railways’ cost through PPP Model:
Economic growth in recent years has
enhanced the relevance of railways as a critical element in global
competitiveness of the Indian economy. In particular, this sector has witnessed
significant interest from both domestic as well as foreign investors following
the policy initiatives taken by the Government to promote Public Private
Partnerships (PPPs) For building and operating world-class railway stations
through PPP, a precise policy and regulatory framework has to be spelt out by
the Railway Management.
15. Concept of
adoption of Value Engineering[1]
in Railways
For example, to
give more value to the station platforms, the Railways have decided to provide
Granite Floors in some of the proposed world class railway stations. Though this will surely create a very good
image of the Railways, amongst the general public, it would be better for the
Railways to think differently in terms of Value Engineering, and to explore the
possibilities providing the same level of value to the Station Platforms
through other simpler methods of beautification of Platforms, which will help
the Railways to reduce its investment costs.
16. Utilize main line Plat
Forms for commercial activities:
These platforms, instead, can be
profitably used by commercially renting out the space for setting up of stalls.
The shifted offices may be located either on the upstairs or on island
platforms if any located nearby. Even the idea can be extended for setting up
of high value sales stores like jeweler shops, silk emporiums etc especially in
cultural and pilgrim centers.
17. Revamping parking
facility:
The parking facilities can be provided in the complex itself in one of
the floors. Even the cost of building the malls/complexes can be done on
BOLT/BOT/PPP models to avoid immediate capital expenditure on the part of
railways.
18. While renting out space for
commercial activities in railway stations, the following may merit
consideration.
(a) Centrally located issue of tokens for
availing of services/purchase of refreshments etc,
(b) In places
where shop-keepers have been allowed individual building, the details of sales
may be networked so as to facilitate railways to have an idea of actual sales.
19.
Centralized billing in station stalls:
it is suggested that it would be
better for the Indian Railways if the charging of license fees is done as a
percentage of the profit by each licensee by de-linking the calculation of
license fee with reference to space provided.
To achieve this, each licensee should be asked to generate
a bill for the services provided from their computer and all such computers
should be linked to the main server with Railway so that the Railways can
collect from the contractors / license-holders a share on profit (or) as a
percentage on the sales turnover. Alternatively, even in the existing method of
fixing of license fee based on the Annual Sales Turnover, if the billing computers of the Contractors /
License-holders are linked with the Railways Computers, the Railways can revise
the Annual License Fee automatically, as and when there is increased
sales.
20. Reorient
license fee:
Depending
upon the place of business or the popular demand, the Railways can adopt fixing
of license fee either as a certain percentage of market value of the space so
allotted with escalation factor for each year, or as a percentage of sales
turnover or with combination of both principles
The above is only a tip of the iceberg. The Indian Railways should make concerted
efforts to effectively utilize the available land spaces. The Railways should also ensure that various
assets created involving huge financial resources are put into use in time so
that the huge investment cost is recouped by the Railways at the earliest.
21. Involvement of Local Bodies / Municipalities etc. in the Creation /
Development of Railway Stations:
In this case, a
very good example that can be cited is Velankanni extension line from
Nagapattinam. Here, the Basilica of the Lady of Health, situated at Velankanni
offered a part of the capital cost for building a BG line from Nagappattinam to
Velankanni a sum of Rs.10 Crores, as a gesture towards joint participation. As
a step forward, this model can be extended to other stations, especially, where
pilgrim centers are situated. Even the day to day maintenance of the stations
can be looked after by the beneficiaries of the stations, making substantial
savings in the revenue expenditure. E.g.
the maintenance of Melmaruvathur railway station – a Hindu pilgrim centre
receives pilgrims throughout the year- can be sponsored by the temple trust. As
a matter of fact, many local organizations might be more than willing to
participate in such endeavors, which have to be identified for gainful utilization
by Railways.
22. Upkeep and Maintenance of Railway Stations through CSR:
The Railways can
profitably make use of this Corporate Funds towards upkeep and beautification
of Railway Stations, especially where corporate offices are located. Specifically, the Railways can develop an
interaction model with the corporate paving way for identification of projects
and maintenance. E.g. the PARANUR
Station of Chennai Division was re-modeled and beautified by Mahindra
Satyam (IT Company). Even the entire cost of day-to-day maintenance of station
premises is undertaken by the Company.
This had lead to huge reduction in Maintenance Expenses of the Station
Premises and other related service buildings for the Railways. Similar
arrangement was also made at DIVINE
NAGAR Station of Trivandrum
Division, which had also lead to huge reduction in the maintenance expenses
of the Railways.
The Railways can
further interact with the Corporate Officials and explore the feasibility of
expanding this concept to other contiguous railway stations.
The concept of
identification of Railway Stations for upkeep and maintenance under CSR can be
extended to other Zonal Railways which can help to minimize the Railways
maintenance cost.
Proper planning and approach to ensure maximum possible
commercial exploitation of the Railway Lands in and around the station premises
would go a long way in augmentation of the ‘sundry’ earnings for the station
and thus, the station themselves would become a profitable one
Railways are not showing much
interest in the maintenance of proper record relating to non-core activities,
such as Advertisement Boards, catering stalls etc. The deviation from the concept of Responsibility Accounting in respect of
Non-core business of the Railways, clearly leads to poor performance of
ensuring the complete potential earnings of the Railway Assets.
[1] Historically, the concept of value engineering was
evolved in the 1940s at General Electric, in the midst of World War II. Due to the war, the purchase engineer and
others sought substitutes for materials and components, since there was a
chronic shortage of them. These
substitutes were often found to reduce the costs and provided equal or better
performance.
