Profit Motive instills efficiency

Monday, July 18, 2011

Indian Railways : Revenue generating Machine

Indian Railways has recently announced the results of April-June 2011.
The total revenue for the Quarter is Rs 24,756 Crores with about Rs 6800 Crores accounts for Passenger revenue which means around 27% comes from passenger traffic.Also the Railways has carried around 2040 million passengers.
Now if we calculate the ARPU comes to around 33 Rs.
ARPU is 33 Rs/trip which has to be the lowest in the world.
The Indian Railways has been a beacon of what a PSU should be ,more service oriented rather than profit oriented.Railways has certainly been the carrier of the common man.As the Railways connects 8 billion people in a year.

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