6 March 2026·PIB

Strong Growth in Steel, Iron Ore and Fertilizer Traffic Helps Railways Earn Freight Revenue of ₹14,571 Crore in February

In this note

1. At a Glance

Indian Railways (IR) logged ₹14,571 crore freight revenue in February 2026 on the back of a 3.96% YoY rise in freight loading to 137.72 MT [1].
Key UPSC angle: IR is India's largest commercial freight carrier and a barometer of core-sector demand (coal, steel, iron ore, cement, fertiliser) — directly relevant to GS-III infrastructure & economy.
Cumulative 11-month FY26 figures: 1,503.8 MT loading and ~₹1.61 lakh crore revenue [1].

PIB release (Ministry of Railways) dated 06 March 2026 highlighting February 2026 freight performance led by steel, iron ore and fertiliser [1].
Trigger: rising NTKM to 76,007 million (+4.18% YoY) — used as the official efficiency benchmark for rail freight [1].

IR freight operations are managed by the Ministry of Railways through zonal railways and the Container Corporation of India (CONCOR).
Dedicated Freight Corridor Corporation of India Ltd (DFCCIL) — SPV created 2006 to build Eastern & Western DFCs, decongesting trunk routes used by bulk commodities like coal/steel/iron ore.
Mission 3000 MT (announced under National Rail Plan 2030) targets freight loading of ~3,000 MT by 2027 and a 45% rail modal share in freight (vs ~27% historically).
Earlier milestones: Gati Shakti Multi-Modal Cargo Terminal (GCT) policy, 2021; Freight Business Development (FBD) units at zonal level.

Feb 2026 loading: 137.72 MT vs 132.48 MT (Feb 2025); growth +3.96% [1].
Feb 2026 revenue: ₹14,571.99 cr vs ₹14,151.96 cr [1].
NTKM Feb 2026: 76,007 million vs 72,955 million (+4.18%) [1].
Cumulative (Apr 2025–Feb 2026): 1,503.8 MT loading, ~₹1.61 lakh crore revenue [1].
Lead commodities: coal, iron ore, finished steel, fertilisers, cement, mineral oil, containers [1].
Implementing ministry: Ministry of Railways (Union list, Entry 22, Seventh Schedule).
Regulatory tariff body: Rates fixed by Railway Board (not by a statutory regulator).

Economic

Freight contributes ~65% of IR's total revenue, cross-subsidising passenger losses.
Steel/iron-ore traction reflects buoyant construction & infra demand (PM Gati Shakti, NIP).
Fertiliser uptick aligns with Rabi 2025-26 sowing and DBT-fertiliser logistics needs.

Environmental

Rail emits ~1/4th the CO₂ per tonne-km vs road; modal shift to rail is core to India's NDC 2030 logistics-decarbonisation pledge.

Administrative / Logistics

IR's freight share has been eroded by road since 1950-51 (~85% → ~27%); DFCs and National Logistics Policy 2022 aim to reverse this.
Gati Shakti Cargo Terminals allow private/PPP terminal development under simplified land norms.

Strategic

Iron ore/steel traffic supports critical-mineral & infra value chains; secure rail movement underpins Atmanirbhar Bharat in steel (NSP 2017 target: 300 MTPA by 2030-31).

06 March 2026 — PIB release: Feb 2026 freight at 137.72 MT, revenue ₹14,571 cr [1].
FY26 cumulative (Apr 2025–Feb 2026): 1,503.8 MT, ₹1.61 lakh crore [1].
Continued commissioning of segments of Eastern DFC (Sonnagar–Dankuni) and Western DFC (JNPT–Dadri).

IR freight loading in Feb 2026 = 137.72 MT [1].
Freight revenue Feb 2026 = ₹14,571.99 crore [1].
YoY loading growth = 3.96% [1].
NTKM (Net Tonne Kilometres) Feb 2026 = 76,007 million [1].
Cumulative FY26 (11 months) loading = 1,503.8 MT [1].
Cumulative FY26 revenue (11 months) ≈ ₹1.61 lakh crore [1].
DFCCIL incorporated 2006; two corridors: Eastern (Ludhiana–Dankuni) and Western (Dadri–JNPT).
National Rail Plan 2030 target: 45% rail modal share in freight.
Railways is Entry 22, Union List, Seventh Schedule of the Constitution.
Tariff fixation: Railway Board, not a statutory regulator.
Largest freight commodity historically: coal (~ 49% of loading).

GS-III — Infrastructure (Railways); Indian Economy & growth; Issues in logistics.
GS-II — Government policies (PM Gati Shakti, National Logistics Policy).
Probable stems:
"Discuss the role of Dedicated Freight Corridors in achieving the National Rail Plan target of 45% modal share in freight by 2030."
"Indian Railways' freight basket remains over-concentrated in bulk commodities. Examine the diversification challenges."
"Evaluate how PM Gati Shakti and the National Logistics Policy can reduce India's logistics cost from ~13% of GDP."

Dedicated Freight Corridors (DFCs) — direct enabler of bulk freight growth.
PM Gati Shakti National Master Plan, 2021 — multi-modal logistics framework.
National Logistics Policy, 2022 — aims to cut logistics cost to 8% of GDP.
National Rail Plan 2030 — sets 3,000 MT freight target.
National Steel Policy 2017 — links to steel/iron-ore traffic surge.
Sagarmala & Bharatmala — competing/complementary modal programmes.
Coal India & captive evacuation logistics — coal dominates freight basket.
Logistics Performance Index (World Bank) — benchmark for modal efficiency.

Revenue vs Loading: ₹14,571 cr is the revenue figure; 137.72 MT is the loading. Don't conflate.
DFCCIL is an SPV under Ministry of Railways, not under Ministry of Road Transport.
National Rail Plan target year is 2030, not 2025 — and the modal share target is 45%, not 50%.
Railway tariffs are set by the Railway Board, not by a Rail Tariff Authority (proposed but never made statutory).
"Coal" — not steel — remains the largest single freight commodity; February's headline is growth driver, not basket leader.