New Delhi, Aug 18 (PTI) The profit from freight traffic of Indian Railway was utilised to cross-subsidise the loss on operation of passenger and other coaching services during 2022-23, a latest CAG report has shown, and also pointed out an overall upward trend in the net profit of Railway Public Sector Enterprises.

The Comptroller and Auditor General report, tabled in Parliament last week, said the net profit of Railway PSEs showed an increasing trend and increased from Rs 6,146.29 crore in 2018-19 to Rs 12,056.61 crore in 2022-23.

Out of the total 45 Railway PSEs, 33 earned profit (Rs 12,145.97 crore) during 2022-23, which included 12 Railway companies, 10 subsidiaries, five JVs and six SPVs (special purpose vehicles).

During 2022-23, the total expenditure of the Ministry of Railways was Rs 4,41,642.66 crore (11.34 per cent more than the previous year), which 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 of Railways incurred around 72.22 per cent of the total working expenses on staff costs, pension payments, and lease hire charges on rolling stock.

Gross Traffic receipts during 2022-23 were Rs 2,39,982.56 crore, reflecting an increase of 25.51 per cent over the previous year.

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.

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 98.10 per cent in 2022-23 against 107.39 per cent in 2021-22.

Indian Railways generated a net surplus during 2022-23 compared to a net deficit in 2021-22.

The loss on operation of passenger and other coaching services decreased compared to the previous year. The loss of Rs 5,257.07 crore in passenger operations was left uncovered during 2022-23, the CAG report said.

The profit from freight traffic was utilised to cross-subsidise the loss on operation of passenger and other coaching services, it added.

Railway's total earnings and expenditure from its operations, when compared with its cross-subsidising records, showed that it understated its expenditure in the financial year 2022-23, the CAG report said.

The CAG found that while the Railways, after working out its earnings and expenditures, presented a net profit of Rs 2,517.38 crore, when the loss in passenger services was compensated by the profit from freight services, it showed a net loss of Rs 5,257.07 crore.

The audit showed that Railways' total working expenditure (including appropriation to various funds) stood at Rs 2,37,659.58 crore, whereas its earnings from passenger, coaching, freight and other services were Rs 2,40,176.96 crore, generating a surplus of Rs 2,517.38 crore.

On the other hand, fiscal records related to cross-subsidisation of passenger and other coaching services reflected that total expenditure in operation of all types of trains (passenger, coaching and goods) was Rs 2,45,393.71 crore and total revenue receipt (earnings) from all trains and sundry services was Rs 2,40,136.64 crore, incurring a loss of Rs 5,257.07 crore.

"From the above, it may be observed that the total working expenditure in the summary of fiscal transactions has been understated," the CAG said.

Insofar as its expenses were concerned, its expenditure on goods and services stood at Rs 1,11062.87 crore and passenger services at Rs 1,34,330.84 crore, making a total of Rs 2,45,393.71 crore.

The financial record further suggested that the Railway made a loss of Rs 60,041.18 crore from passenger services, while it registered a profit of Rs 54,784 crore in goods services.

The report also recorded the biggest operational loss from the Sleeper Class, Ordinary Class, and Second Class, which stood at Rs 17,819.21 crore, Rs 17,076.90 crore and Rs 16,357.02 crore. PTI JP BJ VN VN