The Juggernaut Rolls On

Indian Railways is the world's fourth largest rail network, the second largest in Asia, and also the second largest rail network under a single management. It is also the world's fourth largest freight carrier. Contributing to the development of India's industrial and economic landscape for over 150 years, it accounts for about 2.3 per cent of GDP and employs about 1.5 million people directly. Indian Railway comprises of an extensive network spread over 109,221 km, encompassing about 6947 stations and 17.7 million passengers.

Indian Railways has been recording impressive growth rates - both on the physical and financial front. For 2007-08, the cash surplus before dividend and net revenue are estimated at US$ 6.17 billion and US$ 4.53 billion, respectively, placing it in a much better position than many of the Fortune 500 companies.

Indian Railways has taken up the most ambitious ever annual plan for fiscal 2008-09, entailing an enormous investment of US$ 7.91 billion registering a 21 per cent increase over the previous year. The plan includes a total budgetary support of US$ 1.66 billion including US$ 163.33 million to be provided from the Central Road Fund. The annual plan will have Internal and External Budgetary Resources (IEBR) funding of 79 per cent. The plan envisages enhancement of rail capacity, modernisation of the Railways, throughput enhancement on High Density Network routes, traffic facility works and expansion and development of the network.

Indian Railways plans to create a surplus fund of more than US$ 23 billion by the first half of 2009. Bolstered by its aggressive marketing policy, it had already created a fund worth US$ 5.78 billion in the last financial year (2007-08).

Sustaining The Turnaround

Indian Railways' profits are set to cross US$ 23.54 billion by the next financial year.

Boosted by strong growth in earnings, Railways is expected to meet all projected targets. For 2008-09, passenger earnings are pegged at US$ 4.24 billion and freight transport earnings at US$ 11.13 billion, a 10.3 per cent rise over the revised estimates of US$ 10.08 billion.

Buoyed by record US$ 5.28 billion earnings in the last fiscal, Railways has set a target of achieving US$ 21.11 billion by the first half of 2009. It is now aiming at bettering that with 8.6 crore tonnes of incremental loading in 2008-09.

Keeping up with its good show, the Indian Railways has earned US$ 4.13 billion in the first quarter 2008-09, against US$ 3.49 billion during the same period last year, posting an increase of 18.04 per cent. The total goods earnings rose by 22.05 per cent to US$ 2.84 billion till the end of June 2008, against US$ 2.33 billion between April to June 2007.

Railways earned US$ 1.12 billion from movement of 1,739.33 million passengers between April to June 2008, with a 9.96 per cent growth. Till June 2008, Railways had carried 1,649.04 million passengers and earned US$ 1.02 billion.

Revenue earnings from other coaches added up to US$ 107.39 million during April-June 2008, compared to US$ 99.56 million during the corresponding period last year, with an increase of 7.85 per cent. Sundry earnings rose significantly from US$ 41.10 million during April-June 2007 to US$ 48.11 million, an increase of 16.83 per cent.