Apportionment of EarningsApportionment of Earnings

Deepa Kotnis IRAS

What is Apportionment of What is Apportionment of earnings?earnings?

The Earnings from traffic carried over two or more Railways are shared by them while only one railway actually receives the money.The Railway Board prescribes the basis of the apportionment.

Why Apportionment?Why Apportionment?

While the train passes through a number of zones in the case of through traffic, the RR in case of Goods Traffic and the receipts from tickets in the case of Passenger Traffic pertain to only one particular zone.

The costs like fuel,track and crew link maintenance ,signaling and related infrastructure have to be borne by all the railways and hence the earnings must also be shared by all.

Historical BackgroundHistorical Background

Prior to independence ,apportionment was required because there were various railway lines owned by various companies,princely states etc.and earnings had to be shared amongst them all,a task performed by the IRCA.

Post independence,the railways having come under one management, the need of apportionment is not really there except to serve as a useful tool of comparison with previous year’s performance of the same railway,the practice continues.

Relevance in the Present Relevance in the Present ContextContext

In recent times ,with the advent of Railways under private management ,like the KRC and the PRC,the concept of apportionment of earnings has once again become pertinent.

Principle of ApportionmentPrinciple of Apportionment

It is distance/route based. Only haulage charges are apportioned.other

charges like terminal and transshipment charges are excluded.

RR in case of Goods(7C stmt.) and passenger classification in case of Passenger traffic(6A stmt.) is taken as the basic documents.

It is a monthly exercise ,and the EDPM Centre generated the results.

Apportionment in case of Apportionment in case of Passenger trafficPassenger traffic

Based on passenger classification made by the EDP center on the basis of the summary of all PRS,non- PRS,ARTS,etc. tickets.

Earnings from EFT and Through luggage,animals and birds etc.traffic are not apportioned,retained by collecting railway.

The difference between the total amt collected and the shares of the forwarding and the intermediate railways represents the share of the destination rlwy.

PRS

EDP center

ARTS

Non-PRS

Card Tickets

Passenger Classification

(6A stmt.)

WR(Home Railway)(7c &6A)

CRSR

SCR

ER

NER

NFR

SER

NR

CRSR

SCR

NR

SER

NER

ER

NFR

Apportionment in case of Apportionment in case of Goods TrafficGoods Traffic

Basic document is the RR. A Net Result Advice is prepared monthly on the

basis of the RR which are subjected to 100% check fro both routing and rating.

EDP center generates the 7C statement which is sent to all other Zonal Railways.

After crediting the originating rlwy for terminal and transshipment charges,the residual freight earnings are apportioned on the basis of distance.