Riding on a buoyant economy, the railways have exceeded their earnings target for the April-January period by Rs 1,180 crore (Rs 11.8 billion). Earnings from both freight and passenger traffic are also expected to exceed the full-year target by more than 6 per cent.
The volume of cargo carried by the railways in the first 10 months of the fiscal year was 492 million tonnes against the targeted 479 mt.
Ministry officials told Business Standard the railways were likely to close the year at 595 mt of freight against the budgetary target of 580 mt.
The increase in volume is expected despite the 3-7 per cent increase in the freight rates in November.
Rail freight has also started moving longer distances with an 8.7 per cent increase in net tonne kilometres during April-January this year.
In the passenger segment, the railways expect the highest ever incremental traffic of 6 per cent.
Passenger revenue is also likely to be 7 per cent more than the Rs 13,460 crore (Rs 134.6 billion) earned during April-March 2003-04.
This will be 3.31 per cent higher than the budgetary target of Rs 13,940 crore (Rs 139.4 billion) for 2004-05.
"The anticipated growth in freight haulage is mainly on account of increased iron ore and cement traffic," a ministry official said.
The growth in earnings was about 9 per cent despite the increase in freight rates. The average lead, or the distance over which cargo was hauled, in April-January stood at 691 km.
Officials said there was no diversion of traffic to other modes as a result of increase in freight rates from November 27. "Rail freight charges are about 40 per cent cheaper than truck hire rates despite the hike. It is only in cases of multiple handling that the overall cost of transportation is higher," he said.
Firmly on track
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The growth in earnings is about 9% despite the increase in freight rates
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The volume of cargo carried in the first 10 months of the fiscal year was 492 mt against the targeted 479 mt
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Rail freight has also started moving longer distances with an 8.7 per cent increase in net tonne kilometres during April-January this year
- In the passenger segment, the railways expect the highest ever incremental traffic of 6 per cent
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