Indian Railways Has 4% Revenue Growth, Plans Freight Rate Adjustments

16 Jan 2025 CW Team

Indian Railways has earned Rs 2.04 trillion so far this fiscal year, surpassing last year's earnings for the same period by 4%. This includes Rs 589.27 billion from coaching, Rs 1.33 trillion from goods, and Rs 74.42 billion from sundry sources such as parking, catering, and advertisements. Additionally, Rs 52.78 billion was earned under the "other coaching" category, which covers parcels, luggage, and wharfage charges. The national transporter recorded Rs 100.09 billion in revenue during the first fortnight of January. A senior official revealed that Indian Railways is considering adjustments to freight rates to further boost volumes, with the aim of increasing earnings by rationalising fares on certain commodities. The primary driver of the revenue increase was a 2% rise in freight loading, which reached nearly 1.18 billion tonnes between April and December 2024. Passenger services also saw growth, with a 3% increase in the number of mail, express, and other train services, reaching a record 2.07 million runs. Additionally, the frequency of special trains during peak demand periods surged by 54% year-on-year, totalling 57,169 runs. To sustain this growth, the railways will introduce a new timetable that includes 62 special trains on popular routes, along with 74 new services and 34 pairs of Vande Bharat trains. Indian Railways is targeting an operating ratio of 98.22% by the end of this fiscal year, which would generate a net revenue of Rs 28 billion, earmarked for reinvestment in the Development Fund and Rashtriya Rail Sanraksha Kosh (RRSK). (ET)

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