Kathmandu. Nepal’s only railway service is incurring losses every year. He pointed out the need for performance in a planned manner and improvement in management as the railway service was making losses.

According to the employees of Nepal Railway Company Limited, the post of General Manager has been lying vacant for a long time. According to the company, the data of the last five years shows that the expenses of the company have been more than three times more than the revenue. As a result, experts say that the railway service is heading towards a long-term financial crisis.

According to the company’s business action plan, 2082, the company earned Rs 192.1 million from the fiscal year 2076/77 to the fiscal year 2080/81 and spent Rs 673.7 million. In the last fiscal year 2080÷81 alone, the company earned Rs 85 million and spent Rs 262.7 million, according to the then general manager of the company, Niranjan Jha.

According to Jha, the current monthly income is around Rs 75 lakh, but the expenditure reaches Rs 12.9 crore. Jha said that the company had to take loan on government guarantee as it could not meet the expenses. “The total loan including principal and interest has crossed Rs 790 million till Ashad end, 2081 BS, which has put additional financial pressure on the company. “The railway is considered effective in terms of passenger service,” he said. ’

According to Jha, the railway service being operated from Jayanagar of India to Bijalpura of Mahottari via Janakpurdham is operated thrice a day. According to him, the high cost of Indian technical staff is one of the main reasons for the deficit.

According to former general manager Jha, the company has been paying around Rs 11.2 million monthly to Konkan Company for the 17 Indian employees. According to him, the total salary of 103 Nepali employees is Rs 1.7 million.

According to the Nepal Railway Company, lack of permanent technical manpower, lack of workshops, lack of domestic drivers and station masters, no fueling station and the need to import fuel from India have further increased the operating cost. Also, the management has become weak as the company has been without a general manager for a long time.

The railway service, which was started in 1994 BS, was closed in 2070 BS for the expansion of broad gauge. The railway service, which was re-opened on March 2, 2021, has now expanded 52 km length. The company has put forward various options to increase the income of the railway and become self-reliant. It is estimated that leasing out 28 acres of land in Raxaul will generate around Rs 80 million annually.

It has also put forward a plan to increase income through tourism by setting up a railway museum for the old narrow gauge coal engines. Local traders have stressed on the need to expand goods transportation services along with passenger service.

According to the locals, it is not possible to make a profit from the service that carries only passengers. The then General Manager Jha had stressed on the need for the Nepal Railway Company to bring cargo train service into operation at the earliest to make its company commercial and profitable. According to him, he has held discussions with representatives of the bodies concerned regarding the operation of cargo service by adding bogies or adding new trains during his tenure.

Although the transport of cargo railway service from Kolkata port of India to Nepal at a cheaper rate has been demanding for a long time, it has not come into operation yet. According to Janakpur entrepreneurs, if the cargo service was operational, it would be easier to transport goods and it would also be cheaper.

Experts say that the railway service can become profitable if management reforms are made in time, production of indigenous skilled manpower, expansion of freight service and loan management. Ram Kumar Jha, 60, of Dhanusha, said that Nepal’s only railway service is almost certain to be in crisis due to the mounting loan. He stressed the need of further expansion and proper management of the railway as it has made daily life easier.