Home > Railways > Economic Growth boosts Indian Railways’ Revenues

Economic Growth boosts Indian Railways’ Revenues

Riding high on the rebound in economic activity, Indian Railways recorded a healthy growth in earnings during the first two months of the current fiscal. Revenue earnings from passengers rose at a faster 7.5% compared to the 7.2% figure in goods earnings. However, goods account for over 65% of the railways’ total earnings.

Coal accounts for the largest chunk of the total goods earnings of the railways. While transport of coal rose 7.2% in FY10, this growth decelerated to 3.1% in April 2010. The reason for this lower growth has always been a topic of debate.

While Coal India — India’s largest thermal coal producer — claims there was a shortage of rakes to transport coal, an Indian Railways statement shifted the blame, saying Coal India had moved from a linkage regime to a fuel supply agreement (FSA) regime.

It had been decided by an inter-ministerial group that all FSAs will be routed through the ministry of railways to take into account logistics issues. Apparently, CIL did not comply with the directive, thereby hampering railways’ plans for movement.

Traffic movement of fertiliser, petroleum oil products and cement surged 9.6%, 15.1% and 13.8%, respectively. This complements the production data for April 2010, as captured by IIP.

  April-May 2010 April-May 2009 % growth  y-o-y

units: Rs crore

Total Earnings




Total goods earnings




Total passenger revenue earnings




                                                     units: million numbers

Numbers of passengers booked




   units: million tonnes

Revenue earning freight traffic




Source: Press Info Bureau

Categories: Railways
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