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Wednesday, Feb 27, 2008
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Gross traffic earnings likely to grow: Lalu

Sandeep Joshi

NEW DELHI: Despite a cut in passenger fares and some freight charges, Railway Minister Lalu Prasad said in his budget speech that the gross traffic earnings were likely to grow by 12 per cent to Rs. 81,901 crore in 2008-09 against Rs. 72,755 crore in 2007-08, an increase of Rs. 9,146 crore. In the current fiscal, the Railways would earn a record profit of over Rs. 25,000 crore, while next year, it is likely to go down to Rs. 24,782 crore, mainly due to an increased spending on major projects.

Mr. Prasad said the Railways were maintaining an overall double digit growth. The freight earnings were expected to rise by 10.38 per cent next fiscal to Rs. 52,700 crore from the revised estimates of Rs. 47,743 crore in 2007-08.

They were revised by Rs. 800 crore for the current fiscal following an 8.2 per cent increase in freight loading in the first nine months.

“Based upon the current trend, we have increased the budgeted target of freight loading for 2007-08 from 785 million tonnes (MT) to 790 MT, while the target for 2008-09 was fixed at 850 MT, an incremental loading of 60 MT or more for the fourth consecutive year,” he said.

Mr. Prasad said in 2007-08, growth in passenger earnings is likely to go up to 14 per cent, while the gross traffic revenues would be 16 per cent higher than the previous year and two per cent more than the budget Estimates.

“Similarly, the return on capital will be an all time high of 21 per cent, against 20 per cent of the previous fiscal, while the year-end fund balances is likely to be at Rs. 20,183 crore, 27 per cent more than budgeted target.”

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