diesel prices decline. Given the slowing economy, it would not have made sense to extract a higher charge from freight customers. There is always the risk they may look for a cheaper alternative to transport their goods. Already, freight target for FY13 has been scaled down to 1007 metric tonnes from the Budget estimate of 1025 metric tonnes, and freight earnings target from to Rs 85,976 crore from Rs 89,339 crore.
Operating ratiowhat the Railways spends to earn Rs 100--for FY13 has been estimated at 88.8 percent. Railway Minister Bansal terms that as a great source of satisfaction as operating ratio has been mostly above 90 percent since 1997-98. But that appears to have been achieved largely through a reduction in plan investment to Rs 60,100 crore from Rs 52,265 crore.
Passenger earnings for FY13 is expected to be Rs 32,500 crore, down from the Budgest estimate of Rs 36,073 crore, and gross traffic receipts (freight + passenger+ others) has been pruned to 1,25,680 crore from