Indian Railways today reported a 7.6 percent rise in freight volumes in October compared to previous year, data released by the Railway Ministry showed.
The railways carried 106.00 million tonnne of goods in September, 4.2% lower than 110.66 million tonne handled a month ago.
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Indian Railways freight loading during October 2021 was 117.34 million tonnes which is 7.6 percent higher when compared to October 2020. The railways earned Rs. 123,11.46 crore from freight loading during October which is 18.2 percent higher when compared to last year.
The Indian Railways freight volumes and earnings from freight also rose 10.7 percent and 13.8 percent when compared to September.
In September the Indian Railways had reported its slowest growth in rail freight volumes and earnings in the last 14 months.
Data on railway freight volumes act as an early indicator for where the economy is headed. For instance, the movement of cement and steel helps gauge the growth in the construction sector. Coal movement is a good proxy for electricity and industrial demand.
The rise in earnings from freight coupled with the rising volumes indicates that the Indian economy is recovering from the aftermath of the COVID-19 pandemic.
The Indian Railways also surpassed its highest ever freight loading volumes in October.
The national carrier had in September last year announced a skew of measures to promote the use of railways to transport goods.
To achieve this, the national transporter had taken several industry-friendly measures during the financial year. This includes the formation of business development units, launching of freight business development portal and introduction of a new iron ore policy.
Tariff incentives like long lead discounts for commodities like coal, iron ore, finished steel, limestone and clinker and short lead discounts for all commodities except coal and iron ore also helped in shifting of a large share of commodities from road to rail route.
In addition, withdrawal of busy season surcharge of 15 percent, 5 percent and 25 percent discount on loaded and empty containers respectively, 40 percent discount for fly ash in railway wagons were other major tariff measures launched during the year.
Among the non-tariff incentives lined up during the year include liberalisation of the wagon and terminal investment schemes, reduction in punitive charges, opening up of all stations for parcel traffic, removing the limit of the number of co-users at sidings, improvement of good sheds and improving the fleet of wagons. For smaller transportation products also distance restriction was removed during the year.
Until August the Indian Railways had seen twelve consecutive months when it surpassed its highest freight loading volumes.
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