Railway Minister Lalu Prasad on Friday left freight rates unchanged in his interim budget to keep traffic from shifting to road transport that has become cheaper following cut in diesel prices.The decision was influenced by the sharp drop in freight traffic in October and November as the impact of the global economic slowdown hit the Indian shores.
"In October and November, the growth in freight loading was adversely impacted by the recession in the international markets. There was a steep reduction in iron ore for export and container traffic.
"The growth rate of steel traffic also reflected a decrease. This resulted in a decrease in freight loading and freight earnings...," Lalu Prasad said presenting the interim budget, necessitated by general elections in the coming months.
The Railway Ministry has targeted freight loading at 910 MT for 2009-10, which is over 60 MT from FY'09 numbers. However, freight loading target for the full year ending March 31 is likely to be retained at 850 MT.
Lalu Prasad said the freight situation in December and January indicate some improvement. "We are not only hopeful, but confident that the budget target for goods earnings set for this fiscal will be surpassed."
Freight earnings increased to Rs 38,093 crore (Rs 380.93 billion) by the end of December 2008, registering a growth of 14 per cent.
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