09-20-2007, 03:16 PM
Laloo had hired IIM to do a story on this Railway turn-around story. Seems like he's got some out-of-job Enron bookeepers on payroll too.
Laloopalooza: The Great Sleight Of Hand
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Laloo has been claiming that the railways made a profit of Rs 21,578 crore in 2006-07. But the actual figure was Rs 11,000 crore. Here's the secret of Laloo's added profits:
- Rs 9,000 crore pension funds shown as cash surplus
- Miscellaneous funds-Rs 2,500 crore-included in earnings
- Rs 1,700 crore due to the Indian Railway Finance Commission as dividend for lease of wagons put in the profit account
- Profits shored up by showing advance earnings for 2007-2008 in last year's balance-sheet
- Monies in the suspense account-funds promised but not yet transferred-reflected in the earnings/profits
- Tonnage carried by freight trains raised despite repeated objections and safety concerns. This brought in Rs 5,000 crore.
- Hidden costs to passenger tickets earned the railways Rs 325 crore
Revenue-Friendly, But The Aam Admi...
Here's what Laloo has done to increase earnings from passengers:
Milking Tatkal: This was for passengers travelling in an emergency. Less than 10 per cent seats were kept in the tatkal quota and released on the scheduled day of departure. The surcharge was Rs 100 per ticket. Now 30 per cent seats have been set aside for tatkal and reservations open five days before departure. The surcharge is Rs 250 per ticket. Additional earning for railways: Rs 150 crore.
Declaring Trains Superfast: More than 100 express trains have been declared superfast though their running time remains the same. The superfast tag attracts a surcharge. This upgradation meant Rs 75 crore in the coffer.
Upping Cancellation Charges: Doubling cancellation charges has helped. Added profits: Rs 100 crore.
Costlier Return Tickets: Surcharge on return ticket earned the railways Rs 30 crore.
Pay More for Onward Journeys: You can no longer buy a single ticket if you have to change trains for an onward destination. For example, a person travelling from Mumbai to Guwahati could earlier buy a Mumbai-Howrah-Guwahati ticket for Rs 557. Now, he has to buy a Mumbai-Howrah ticket for Rs 517, and another ticket for the Howrah-Guwahati leg for Rs 369. Added profits for the railways: Rs 100 crore.
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Laloopalooza: The Great Sleight Of Hand
<!--QuoteBegin-->QUOTE<!--QuoteEBegin-->
Laloo has been claiming that the railways made a profit of Rs 21,578 crore in 2006-07. But the actual figure was Rs 11,000 crore. Here's the secret of Laloo's added profits:
- Rs 9,000 crore pension funds shown as cash surplus
- Miscellaneous funds-Rs 2,500 crore-included in earnings
- Rs 1,700 crore due to the Indian Railway Finance Commission as dividend for lease of wagons put in the profit account
- Profits shored up by showing advance earnings for 2007-2008 in last year's balance-sheet
- Monies in the suspense account-funds promised but not yet transferred-reflected in the earnings/profits
- Tonnage carried by freight trains raised despite repeated objections and safety concerns. This brought in Rs 5,000 crore.
- Hidden costs to passenger tickets earned the railways Rs 325 crore
Revenue-Friendly, But The Aam Admi...
Here's what Laloo has done to increase earnings from passengers:
Milking Tatkal: This was for passengers travelling in an emergency. Less than 10 per cent seats were kept in the tatkal quota and released on the scheduled day of departure. The surcharge was Rs 100 per ticket. Now 30 per cent seats have been set aside for tatkal and reservations open five days before departure. The surcharge is Rs 250 per ticket. Additional earning for railways: Rs 150 crore.
Declaring Trains Superfast: More than 100 express trains have been declared superfast though their running time remains the same. The superfast tag attracts a surcharge. This upgradation meant Rs 75 crore in the coffer.
Upping Cancellation Charges: Doubling cancellation charges has helped. Added profits: Rs 100 crore.
Costlier Return Tickets: Surcharge on return ticket earned the railways Rs 30 crore.
Pay More for Onward Journeys: You can no longer buy a single ticket if you have to change trains for an onward destination. For example, a person travelling from Mumbai to Guwahati could earlier buy a Mumbai-Howrah-Guwahati ticket for Rs 557. Now, he has to buy a Mumbai-Howrah ticket for Rs 517, and another ticket for the Howrah-Guwahati leg for Rs 369. Added profits for the railways: Rs 100 crore.
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