Tuesday 23 February 2016

Railway budget: Can auto sector help Suresh Prabhu boost revenues?

Auto and FMCG segments are on the radar to increase freight revenue, says a report. About 46 commodities are being explored to improve the revenues.


The railways desperately needs revenues to come in to boost their income and Railway Minister Suresh Prabhu is likely to tap newer areas to roll in the money. Auto and FMCG segments are on the radar to increase freight revenue, says a report.  About 46 commodities are being explored to improve the revenues.
 
One report stated that Railways is drifting from billions(operating cash surplus of $6 billion and operating ratio of 76% in FY08) to bankruptcy (operating cash loss of around $5 billion and operating ratio of 120%) in FY17.
 
While a report stated that the hike in passenger fares in some cases could be to the extent of 5 to 10%, there is a possibility of some hike in freight rates also in few segments. 

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