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Railways beat downturn, to remain on growth track

Railways beat downturn, to remain on growth track
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First Published: Fri, Feb 13 2009. 02 22 PM IST
Updated: Fri, Feb 13 2009. 02 23 PM IST
By PTI
New Delhi: Indian Railways will stay on growth track in 2009-10 projecting cash surplus of Rs18,847 crore after cutting most of the passenger fares, even as economic slowdown affected its freight business.
Even as its industrial customers face a crippling slowdown, the railways expect to earn gross traffic receipts of Rs93,159 crore in 2009-10, exceeding the revised estimates for the current fiscal by Rs10,766 crore. Passenger fares for second class (above Rs50) as also for the luxury trains have been reduced by 2%.
The pace of expansion is affected by the global downturn impacting the Indian business, but the balance-sheet of the country’s largest transporter remains robust.
Expenses (operating ratio) would a tad higher at 89.9% because of increased salary bill after implementation of the Sixth Pay Commission in the next financial year as compared to 88% in the current fiscal.
As the rest of the economy is grappling with business setbacks, the Railways would pay a higher dividend of Rs5304 crore to its owners -- the government.
“ ...Railways have kept the human aspect as the central focus and achieved an extraordinary feat without putting in any extra burden on the common man or the employees,” railway minister Lalu Prasad said while presenting the interim Budget in Parliament today.
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First Published: Fri, Feb 13 2009. 02 22 PM IST