The Indian Railways is estimated to have posted an all-time high revenue of Rs.1.68 lakh crore in the just-ended fiscal year, powered by its focus on boosting freight traffic and innovative steps on passenger fares. The national transporter hauled 1.107 billion tonnes of cargo in the year ended March 31, surpassing its most recent target of 1.094 billion tonnes for fiscal 2017. Railways minister Suresh Prabhu said his aim for this fiscal year is to do 1.2 billion tonnes. The steps the ministry took in the past year included additional discounts on loading of some commodities, doing away with various usage charges on freight, as well as innovative pricing of premium passenger trains, such as dynamic pricing on Rajdhani and Shatabdi. However, despite the signs of recovery in financial health of the national transporter, its operating ratio – the amount it spends to earn each Rs.100 – continues to remain high at around 95 per cent, leaving it with little funds for safety and maintenance projects. The railway ministry has been working on an agenda, set by Prime Minister Narendra Modi, to transform the organisation. Under it, the ministry has prepared a five-year development plan, which includes a capex of Rs.8.5 lakh crores.

(Economic Times)