New Delhi: The Indian Railways in June posted a mere forty five basis point increase in freight traffic over the year ago period, following lower than expected industrial growth in May, according to data released on Monday.
A basis point is one-hundredth of a percentage point.
In the month of June, the railways loaded 71.58 million tonnes of freight, up 0.32 tonnes over the year ago period. Sequentially, revenues fell 3.5% from the 74.24 million tonnes the national transporter carried in May this year.
The index of industrial production, or the IIP grew at 11.5% in May compared with 2.1% a year ago, the eighth straight month of double-digit growth. The Central Statistical Organisation, which releases the data, revised growth rates for February and April downward.
Freight is the railways’ main revenue earner. The national transporter loses money through it’s heavily subsidized passenger fares. In 2009-10, the railways earned some Rs88,355 crore (according to provisional data) from it’s freight business.
For the quarter ended June 2010, the national transporter carried 218.25 million tonnes, a 2.42% increase over the previous year.
In an earlier interview, a senior railway official had talked about bad conditions for the national transporter. The railways failed to meet internal revenue generation targets despite posting a healthy increase in the amount of freight it carried.