In a recent report submitted by Railway Committee, it was said that the revenues of Indian Railways has taken a huge hit in the recent times. The bifurcation of Andhra Pradesh state was highlighted as one of the major reasons for the sliding down of their income.

After bifurcation, there has been a huge drop in the number of passengers from newly formed state of AP to the joint cities of Hyderabad and Secunderabad - said the committee. In the last two quarters of 2014, the numbers decreased by a staggering 60 to 70 lakhs and this has directly effected the revenues. As the governments in both the states got stabilized, the road transport is back to normal working condition and this too had a major impact on Railways revenue.

Apart from the bifurcation of southern state, "easier vehicle loans" was said to the major factor behind loss of revenues. More and more "short-distance" passengers are inclined towards buying a two-wheeler or a car for their local commutation and are surely moving away from train journeys. "The railways has lost around 1.3 million passengers in the recently concluded fiscal year," said a committee member.