CAG asks Railways to curb losses in passenger segment

Taking note of losses in train operation, Comptroller and Auditor General of India asked the Railways to revisit passenger and other coaching tariff so as to recover the cost of operations in a phased manner and reduce losses in its core activities.

CAG in its latest report tabled on friday observed that during 2013-14, there was a loss of Rs 31,727.44 crore on passenger and other coaching services. In the freight services, railways earned a profit of Rs 32,641.69 crore and was able to retain 2.80 per cent of the profit on freight earning after subsidizing the loss on passenger services in 2013-14 as compared to 21.66 per cent in the previous year, showing a shortfall in the operational profit.

All category of passenger services (except AC 3 Tier) incurred losses in 2013-14.