1. Apportionment of Earnings
Deepa Kotnis IRAS

2. What is Apportionment of 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.

3. 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.

4. Historical 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.

5. Relevance in the Present Context
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.

6. Principle 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.

7. Apportionment in case of Passenger 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.

8. PRS
Non-PRS
Passenger
Classification
(6A stmt.)
EDP center
ARTS
Card
Tickets

9. CR CR SR SR
SCR
SCR
WR(Home
Railway)
(7c &6A) ER ER
NER
NER
NFR
NFR
SER
SER NR NR

10. Apportionment in case of Goods 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.