New Delhi: Although the railways has suffered huge revenue losses in its core passenger segment due to the Coronavirus crisis, it appears to have struck gold with the sale of scrap, registering its highest ever income of Rs 4,575 crore in 2020-21 under this category, an RTI query revealed. The previous best scrap-sale value was Rs 4,409 crore in 2010-2011.
Due to the rapid electrification of routes and waste generated by workshops, Indian Railways generate scrap materials mainly from laying new tracks, converting old tracks into new ones, abandoning old structures, selling old locomotives, coaches and wagons, and selling old surplus or condemned diesel engines. Over the years, this has been a major source of revenue for the national transporter.
As a reply to the query filed under the Right of Information (RTI) Act by Madhya Pradesh-based Chandra Shekhar Gaur, the Railway Board has said that the revenue from scrap sales during the Covid pandemic-affected 2020-21 was 5 percent more than the previous year.
It has stated that the sale of scrap material generated Rs 4,333 crore in 2019-2020 and Rs 4,575 crore in 2020-21.
The railways has also improved its scrap sales by making them more accessible and transparent. In the railway industry, all auctions and financial transactions are conducted electronically, making the system transparent and accessible to all parties, a spokesperson for the local transporter said in a statement.
The railways conducted 100% of their auctions electronically through auction-conducting officers in their divisions and depots. Scraps are sold in lots and these lots consist of similar items, such as rails, track items, PSC sleepers, locomotives, wagons, coaches, etc.
‘During FY 2020-21, a scrap sale of Rs 4,575 crore was achieved by the Indian Railways against the Railway Board’s target of Rs 4,000 crore. This was the highest-ever scrap sale figure achieved by the Indian Railways. This is about 14% higher than the set target and about five percent higher than the scrap sale figure of the previous financial year. This figure was achieved despite the Covid-19 pandemic during 2020-21 and almost nil sale activity in the first quarter of 2020-21. The scrap sale got momentum, especially during the last quarter of 2020-21, with the highest level of cooperation among the departments concerned in the zonal railways and not only the target was achieved, but it was surpassed. Zonal railway wise, the highest figure of Rs 491 crore was achieved by the Western Railway,’ the spokesperson said.
According to Railway Board officials, a scrap sale target of Rs 4,100 crore has been set for the upcoming fiscal year 2021-22. As of June 20, despite the second wave of COVID-19 affecting sales activity during the first quarter, a cumulative scrap sale of Rs 444 crore had been completed.
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