Railway freight traffic is likely to clock a 5.2 per cent growth this fiscal on higher demand from coal and iron ore meant for domestic steel plants, a forecast by Centre for Monitoring Indian Economy (CMIE) says.
The freight traffic during the June quarter increased 4.8 per cent compared to the same period a year ago. The report said country’s coal imports are expected to rise 28.3 per cent to 134.4 million, which will create a need for transporting. There is a strong demand for coal from the power and steel sectors. Since the domestic output is not sufficient to meet the demand of the power sector, coal is imported.
According to CMIE, in June 2012, the Railways freight traffic increased by 5.2 per cent year-on-year to 80.4 million tonne.
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