Corona impact: No lay-offs but Railways may incur ₹1390 crore loss in the next 10 days

Due to the lockdown and cancellation of passenger-trains, Indian Railways may incur a loss of ₹1390 crore in the next 10 days, said a top railway ministry official.

The official who did not wish to be named told NH that “according to our assessment, railways will incur a loss of ₹139-140 per day due to the cancellation of passenger trains.”

According to the data provided by the ministry, Indian Railways operates 13500 passenger trains and long-distance trains every day.

In order to curb the-spread of the virus and community transmission, all services have been canceled till the end of this month, including suburban trains and metros, due to the pandemic.

However, according to the official NH talked to, 9000 goods-trains have been allowed to function as per the schedule and requirements.

When asked about the possibility of lay off and the salary-cut in the national carrier, the official said, “Indian Railways stands with its employees in this time of crisis. There will be no cut in salaries or wages. Employees working with the railways will be entitled to all benefits as per rules during the lockdown period also”.

According to the data, the cancellation of tickets caused a loss of ₹176 crore in the last seven days to the Railways.

As the number of people affected with the COVID-19 surged to more than 400 in the country and the global number reached 300000, analysts believe, already swindling Indian economy is bound to receive another jolt due to the lockdown with the Railways being the third most affected sector after aviation and tourism.