The Indian railways have suffered a huge loss due to COVID-19 but aim to balance that through selling scrap through e-auction which is cost-effective
Every year, the Indian Railway earns crores by selling scrap material that they acquire when they lay new tracks, when old tracks go bad, selling old coaches and machinery, engines and other waste materials. The railways set a target every year zone-wise to generate revenue so that it does not create pressure on the centre and the work gets distributed accordingly.
According to reports, this year the northern railway has earned Rs 85.45 crores after selling scrap till the end of July 2021. Last year’s revenue was way less in comparison to what they have earned this year. Northern railways earned Rs 42.19 crores last year which is almost half of what they got this year. The set target for the northern railways this year is Rs 370 crores. Scraps are sold through e-auctions.
The General Manager of Northern Railways, Ashutosh Gangal, stated that despite the second wave of the coronavirus they were able to generate a revenue of Rs 85.45. He further said, “Northern Railway has been able to maintain the supply of all essential medicines, injections and other materials uninterruptedly amid COVID-19 pandemic. Every effort has been made to ensure uninterrupted availability of Liquid Oxygen by coordinating with the State Governments and suppliers.”
The railways have suffered a huge loss due to COVID-19 but aim to balance that through selling scrap through e-auction which is cost-effective.