Coronavirus lockdown | Railways to lose over Rs 12,000 crore in revenue earnings due to COVID-19 crisis

Representative image (Image: AP)

The Indian Railways has suspended its passenger and freight services for 43 days in compliance with the nationwide lockdown to curb the spread of the deadly novel coronavirus, which has led to losses totalling Rs 12,500 crore. It is set to lose Rs 6,500 crore in revenue earned from ticket sales and nearly another Rs 6,000 crore in revenue earned from plying freight services.

At 43 days, this will mark the longest stretch for which train services have remained suspended by the Indian Railways since the 54-day strike of 1974.

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Although goods trains continue to operate, they are plying at 60 per cent of their capacity right now as demands from industries and factories have lowered due to the lockdown that is slated to be lifted on May 3, reported the Hindu Business Line.

The IRCTC earns nearly Rs 150 crore every day by ferrying passengers, which translates into revenue earning of Rs 53,000 crore annually. Its daily earnings from freight services stand at around Rs 345 crore, which means if it is operating at 60 percent of its capacity, the daily revenue loss would amount to Rs 138 crore.

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The Indian Railways had earned Rs 4,440.35 crore in passenger revenue in March 2019, and Rs 4,358.34 crore in passenger revenue in April 2019. The corresponding figure for March 2020 is not out yet, but what is certain is that April 2020 will be a complete washout due to the lockdown.

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Even if the lockdown is lifted on May 3, the Railways will have to resume services in a staggered, phased manner, meaning it will take the country’s biggest employer months before it recovers its losses.

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