Railways Reports More Than 10 Per Cent Growth In First Quarter

Aided by the dynamic fare pricing system for premium trains, Indian Railways has reported a revenue growth in excess of 10 per cent in the first quarter of the financial year, reports the Economic Times. Growth in both the passenger and freight segments has seen revenue in the quarter ending June 2017 grow to Rs 43,000, up from Rs 38,833 that was reported at the same time last year.

The revenue has reached the highest ever for the passenger segment, at around Rs 14,000 crore, up from Rs 12,000 crore last year. The key factor in the rise of passenger fares was the increase in the number of premium trains that made use of dynamic fare pricing. Around 2,100 passenger bookings were made in the last quarter on various new premium trains such as the Uday Express, Tejas Express and Humsafar Express. Further, demand for air-conditioned trains has also seen an increase, prompting the Indian Railways to launch more economy air-conditioned trains.

Increased demand for transport of steel, iron ore, food grains and other commodities has seen the railways carry 290 million tonnes of freight in the last quarter. Revenue collections have reached Rs 28,000 crore this year, up from Rs 25,000 crore the previous year. Non-fare revenue has also contributed to the growth.

The revenue target for the current financial year has been set at Rs 1.89 lakh crore, of which freight and passenger services would contribute Rs 1.18 lakh crore and Rs 52,000 crore, while the remainder would be from non-fare sectors. The Railways is positive about meeting targets as freight loading increases between the months of December and March.

Rs 1.67 lakh crore has been earned in the financial year 2017 with 1.107 billion tonnes of cargo being hauled. Railway Minister Suresh Prabhu aims to reach 1.2 billion tonnes this fiscal.