Railways net revenue to grow by 33% in 2011-12

The net revenue of the Indian Railways is likely to grow by 32.93 per cent to Rs 11,993.13 crore (Rs 119.93 billion) in 2011-12 compared to revised estimated income for this fiscal, Railway Minister Mamata Banerjee said on Friday.

The minister said the Railways is expecting a net revenue of Rs 9,021.86 crore (Rs 90.21 billion) for 2010-11, as against an earlier projection of Rs 9,781.55 crore (Rs 97.81 billion).

Presenting the Railway Budget for 2011-12, Banerjee said the organisation is likely to pay a dividend of Rs 6,734.72 crore (Rs 67.34 billion) in the next fiscal as against a revised estimate of Rs 4,917.36 crore [Rs 49.17 billion] (budgetary estimate was Rs 6,608.46 crore [Rs 66.08 billion]) payment during 2010-11.

Banerjee further said the earnings of the Railways are set to exceed the Rs 1 lakh crore mark for the first time in 2011-12.

"On the basis of freight traffic projection of 993 million tonnes and passenger growth of 6.4 per cent over 2010-11, the gross traffic receipts are estimated at Rs 1,06,239 crore (Rs 1,062.39 billion), assuming a clearance of Rs 200 crore (Rs 2 billion) from traffic suspense," she said.

Earlier, the government had revised marginally upwards the estimates of this fiscal's gross traffic receipts to Rs 94,840.44 crore (Rs 948.4 billion) from Rs 94,764.95 crore (Rs 947.64 billion) on budget estimates.

Banerjee also hiked the projection for total working expenses to Rs 96,450 crore in FY'12 from a revised estimate of Rs 87,200 crore (Rs 872 billion) (the budgetary estimate was at Rs 87,100 crore [Rs 871 billion]).

The increase in the expenses is on account of "annual increments of salaries, DA, higher requirement for fuel and materials for increased level of activity and lease payments", she said.

"I hope the Railways will soon emerge stronger, leaving behind the impact of the Pay Commission and engage fully in the revival of its financial health," Banerjee said.

The Railways has proposed a Rs 57,630 crore (Rs 576.3 billion) plan investment during 2011-12, making it the highest ever annual outlay by the sector, she added.