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Railways plan austerity measures in view of income loss due to Corona

By IndianMandarins- 22 Jun 2020
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Railways is gearing up to adopt a slew of austerity measures proposed by its financial commissioner in view of serious dent in its earnings due to coronavirus crisis. It plans for a freeze in the creation of new posts, rationalisation of manpower at workshops, shifting outsourced work to CSR, moving ceremonial functions to digital platforms and cutting down on use of stationary by 50 per cent.

The financial commissioner of the railways told general managers of all zones in a letter dated June 19 that the traffic earnings of the national transporter dropped by 58 per cent at the end of May, as compared to the corresponding period of last year. “There is a need to explore new areas of expenditure control and enhancement of earnings,” the letter says.

It also advised the zones to control expenditure by reducing staff cost, rationalising staff and also by making them perform multiple tasks. It also asked the zones to review contracts, reduce energy consumption and cut costs in administrative and other areas.

“Immediate review of re-engaged staff and feasibility of curtailing the same to a bare minimum shall be explored. Freeze new post creation except for safety-related posts.

“Review of posts created in the last two years should be done and if recruitment has not been done against those posts, the same may be reviewed for surrendering, rationalisation of manpower in workshops. Time and motion study of workshops and production units for review of allowed time and incentives,” the letter says.

The financial commissioner also recommended that all file work be moved to the digital sphere and advised that all correspondence must be done through secure e-mails. It also instructed the zones to reduce the use of stationery articles, cartridges and other items by at least 50 per cent. It also asked zones to review and close all uneconomic branches of the ministry.

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