Coal is gold for railways

Coal used in generating power, manufacturing steel and cement, is among the main sources of income for the Railways and contributes over 38% of its freight earnings, according to the Railway Budget for 2011-12.

The Budget presented by the Railways Minister Mamata Banerjee today revealed that out of the expected Rs 62,489.33 crore total income from freights in 2010-11, coal was likely to contribute Rs 24,127.77 crore to the kitty.

The Indian Railway had earned Rs 58,501.68 crore from ferrying goods in 2009-10 in which coal transport contributed Rs 22,418.07 crore.

Hoping to ferry more coal, the railways has set a revenue target of Rs 68,620 crore for the next fiscal, which is nearly 10% more than the projected income in the current fiscal.

The Railways is projecting an earning of Rs 27,126.49 crore by transporting coal for steel plants, washeries, power houses and for other public users for the next fiscal.

Indian Railways had earned a total of Rs 23,488.17 crore by ferrying passengers in FY10, hopes to generate Rs 26,126.4 crore in the current fiscal and Rs 30,456 crore in FY12.

Transport of iron ore is the second highest source of income for the railways in the freight category. Railways had earned Rs 8,345.27 crore through iron ore transports and aims to generate Rs 8,423.83 crore in the current fiscal.

For the next fiscal, it targets to achieve Rs 9,035.31 crore revenue from transportation of iron ore.

Coal India, which accounts for over 80% of the country's production, targets 431.5 million tonne production for this fiscal. Its output target for 2011-12 is 460.5 million tonne.

Out of India's total 771.551 KWh power generation in FY10, 640.876 KWh was generated from thermal sources.