Railways to focus on cutting costs up to 50%

Instructions have been issued to General Managers of zonal railways

Indian Railways has decided to cut all activities except safety and COVID-19-related ones by 33%-50%, curtailing expenditure on publicity, travel, meetings, entertainments and so on in view of the drastic fall in revenues due to the pandemic.

Instructions have been issued to General Managers of zonal railways across the country to move official functions and meetings online and desist from purchasing any new furniture, vehicles and computers even for replacement.

Financial Commissioner Manjula Rangarajan in her official communication to GMs called for curtailing annual inspections as it was a ‘big affair’ involving huge expenditure and manpower. These should be “silent” and “low-key” affairs with minimal staff.

Stationery articles, cartridges and others too should be reduced by more than 50% in view of electronic offices taking shape. Expenditure on vehicles should be reduced to the minimum required and where a zero-based review of expenditure on vehicles should be done and report should be sent to the Railway Board.

The managers have been clearly instructed not to merely defer bill payments but to control activities, works, purchases and other contractual obligations so that allocation of funds could be prioritised. They have also been asked to curtail ‘re-engaged’ staff and not to go for recruitment if the posts are not filled in last two years and surrender them.

Save for safety-related posts, there is a freeze on new posts. The commissioner was also categorical that maintenance spares should be reduced. Grounding of diesel locos over 31 years, reducing outsourcing activities in linen management, station cleaning etc., contracts prior to 2018-19 and with completion period less than two years should be critically reviewed and closed.

No new revenue tenders should be initiated and non-core activities by RPF like colony security and crowd management should be reviewed immediately. Diesel and non-traction energy consumption should be reduced by at least 25%. Prepaid metering of electricity of stalls and staff quarters wherever feasible or direct metering with local utility provider should be explored, it was suggested.