Indian Railway Budget

Railway Budget 08-09 at a Glance

Fare Reduction

· Sleeper fare would be reduced by 5%,

· 5% deduction in 2nd class fares beyond 50 km, coming to about reduction of Rs. 50

· AC-I fares would be step down by 7%

· AC-II fares reduced by 4%

· AC-III fares brought down by 3%

Ticketing Reforms

· UTS counters would be increased to 15,000 and ATVM s to 6000 in two years

· Information technology would be introduced at ticket counters

· Planning of ticket confirmation through mobile phone

· Arrival time would be printed on tickets

· E-ticket booking to increase from 1Lac to 3Lac annually

· Ticket reservation would be made possible from anywhere

· Multi department innovation promotion group in railway boards

· Auto ticket sale machines will be increased to 6,000 in 2 yrs

· Automated ticket vending machines will be 250 now

· Plans of doing away with long queues at ticket counter in next 2 years

Special Discounts and Concessions

· Discounts on development of bulk and non-bulk goods terminals

· Boys studying in class 12 to get special confreightcessions to visit their home towns via trains

· 50 per cent concessions for women senior citizens

· For AIDS patients 50% concession in railway fare

· Staff benefit fund to be increased 10 times in 2009

· Free Rajdhnai, Shatabdi journey for Ashok Chakra winners

· Free season tickets would be made available for girl student till graduation

· Decorated soldiers would get special concessions

Profits Railways made during Previous Years

· Rs. 68,778 crore cash surplus in four years

· Railways earned profit because of UPA govt policies

· Surplus Rs 20 bn earned on freight services

· Attained 790 tonnes pay-load target

· Railways registered Profit of Rs 25,000 last year

· Operating ratio of railways at 76.3 per cent in the year 2006-07

Introduction of New lines

· 10 New Garib Raths

· 53 New Ttrains

· Ranchi-Bhagalpur new train would be run thrice in a week

· Indore-Udaipur via Ratlam new train to be introduced thrice in a week

· Introduction of new weekly Puri-Darbhanga express

· Khajuraho-Delhi new train to run thrice in a week

· Coming up of new weekly Varanasi-Rameswaram express

· Machhlipatnam-Bangalore new train to be run thrice in a week

· Amravati-Mumbai express new train to run twice in a week

· New Delhi-Jammu Tawi train to run daily

· Salsa-Amritsar Garib Rath thrice in a week

· Bagalkota-Jaswantpur train now would be run daily

· Kurla to Howrah train twice in a week

· Mathura-Lucknow train would be extended to Patna

· Varanasi-Ranchi via Rourkela train up to Sambhalpur

· Bangalore-Coimbatore train extention to Ernakalum

· Special train between Pune-Delhi for Commonwealth to be started in Oct

· New train Saharsha- Janasebharan Expess would be run weekly

· New train Malda-Patna Express thrice in a week

· New train Amritsar-Kochuveli Express to be run weekly

· Bhubaneswar-New Delhi Rajdhani to start

· New Itarsi-Katni passenger train to be run daily

· New daily Ahmedabad-Patan express to be introduced

· New daily Ahmedabad-Patan express to come up

· Chennai-Salem new train on a daily basis

· Special train between Pune-Delhi for Commonwealth to be started in October

Infrastructural Reforms, Safety and Technology

· Introduction of discharge-free green toilets in all 36,000 coaches in XI Plan Period at a price of around Rs 4,000 cr.

· Call centers would be introduced for inquiries which would be reachable at local tariff

· Long-distance trains would have a system to display next station

· Introduction of multi level parking on few major stations

· Public address systems to be introduced in all trains

· Anti-collision system to be improved to prevent rail accidents

· Mother Child Health Express would be started

· Multi department innovation promotion group in railway boards

· NDLS, Mumbai Cent, Secund'bad, Patna will become world-class

· Close circuit cameras at major railway stations

· Metal detector for checking of luggage

· Signaling system to be introduced for improving line capacity

· Enhanced security system would be in operation at railway stations

· Television and Internet systems in trains

· Touch screen, color TVs would be installed at railway stations

· Rs.500 crores would be spent for the improvement of railway stations

· A multiple purpose card called Go- Mumbai card would be introduced for Mumbai trains

· On boat system for maintaining sanitation at railways

· Escalators would be introduced at 50 new stations.

· High level upgradation of 203 mid level platforms

· Introduction of High-level platforms in 135 stations

· Upgradation of 281 low level platforms to mid level ? 195 stations will have foot overbridge

· Plan to have SMARTCARD-based ticket system

· Low level platform would be upgraded to high level railways

· 560 platforms to be increased for long-distance trains

· Divisional railway hospitals in Jaipur, Hubli would be upgraded

· A new divisional hospital at Ranchi, and an OPD block at ICF would be set up

· N Railway hospital in Delhi would be turned into fully AC

· 13 new works at a price of about Rs 101 cr has been sanctioned for enhancing health services.

New Railway Developments

· Arranged execution of capacity augmentation involving dedicated freight corridors, doubling, third and fourth lines, bye passes, flyovers, automatic signaling works etc in the next 7 years at cost of around Rs 75,000 cr.

· Top attention would be given to port rail connectivity projects.

· Production of an all-time high of 20,000 wagons, 250 diesel and 220 electric locomotives.

· Railways to promote Door to Door Logistics services

· Vision 2025 would involve the setting up of the road map for coming 17 years - customer centric and market responsive strategic initiatives and action plans.

· Public Private Partnership plans would be introduced for pulling investment of Rs 1,00,000 cr in the next five years for the development of world class stations, rolling stock manufacturing, multi modal logistics parks, running of container trains etc.

· More passenger trains would come up in peak season

· Sitting companies will be given railway licenses

· 5% step down in petrol and diesel freight

· Rs 17.3 bn to be spent on new lines regarding Kurla to Howrah train bi-weekly Proposal

· Plans to spend Rs 6.5 bn on metro transport projects

· 155 km new lines would be endeavored to be completed in FY08

· Rs. 2000 crores to be earned from 3000 bogies

· Jansadharan seva to be extended to every zone

· Renewal of 16,548 old rail tracks

· Staff benefit fund to be upgraded to10 times in 2009

· New rail coach manufacturing unit to come up in Kerala

· Staff benefit fund to be increased 10 times in 2009

· Freight services raises additional 20,000 cr

· NDLS, Mumbai Cent, Secund'bad, Patna will become world-class

· New policy would be introduced for wagon leasing

· Pvt cos would be able to make terminals on rail land

· Rs.500 crores would be spent for the improvement of railway stations

· New coaches in all Rajdhani trains would be introduced by 2010

· New coaches would come up Shatabdi trains by 2011

· Plans to come up new wagon designs through foreign cos

· 8.2 per cent growth in freight loading till December 2007

· Shelter would be offered at Rs 500 crores in the next two years

· Rail Plan raised from Rs 11,000 cr to 33,000 cr

· New projects will have Rs 49,250 crores investment ? New policy would be introduced for wagon leasing

For Internal Railways Operating System

· 5700 vacant posts for constables and 993 vacant posts for sub-inspectors would be filled up.

· 5% posts for constables and 10 % of sub-inspectors in the above vacancies would be booked for women.

· 973 additional posts have been created.

· Urdu would also be introduced as a medium of examination for group D posts in the areas where Urdu is the second official language.

· Per-capita contribution to Staff Benefit Fund would be by ten times from Rs 35 to Rs 350 for 2008-09.

· Coolies would be promoted to gangmen

· Staff benefit fund to be upgraded to 10 times in 2009

· Level crossings to be manned by Gangmen

· Container train operators to be up to 50-55 train

· SC,STs to be given more jobs than quota alloted to them

· Multi department innovation promotion group in railway boards ? 5 per cent reservation for women in railway jobs

· Employees in Indian Railways at 1.4 mln in the year 2007-08.

· Previous service tenure of employees working previously in any public sector enterprise, autonomous body or any other agency under State Government or Central Government, whose prior service has been counted for pensionary benefits, would be eligible for post-retirement complementary passes as per the norms being set.

Budget plays a vital role for a developing country like India. The budget of the country has its overall effect upon the various sectors of the economy.The concept of growth fear is partly met as it is growing fast. But achieving the development indicators is very far to reach. Growing Inequality is the best example. In this context, Budget haves its own importance.
the Railway Minister Mr Lalu Prasad Jadav forecasted briefly the Indian railway Budget 2008. It is learnt that the fare and additional surcharge will not be increased. The honorable Railway Minister thinks that such benefits have only made possible by the hard work of the railway workers.

The railways have earned a profit of 20,000 crore over the period of 2006 – 07, which goes beyond the expectation level.It is announced that the Kosi belt network will be expanded and the ongoing broad gage conversion work between Forbesganj to Saharsa and Saharsa to Madhepura will be completed in time. Some express trains will be commenced between Patna and Saharsa.

To combat the loss incurred by the railways every year, despite the above mentioned profit, a model of public-private-partnership would be introduced. According to this model, the railways will occupy the land and the state government and the private sector will run the whole system and control the train frequency. Therefore the railways will no longer need to bother about the maintenance of the railway tracks and can reduce some expenditure.

The Railway Minister has reportedly told that a big amount of money, Rs 25,000 crores, will be spent on restructuring the freight corridor. Therefore, the train speed will increase which will, in turn, help the railways to maintain there train schedules correctly. A passenger train from Kolkata to Dhaka will be started shortly. Mr Prasad also has told that all the meter gage lines across the country will be transformed into broad gage.

Railway Budget was presented by Lalu with neck high. It has many rewards and many promises.The passenger fares have been brought down for all classes as also the freights for select items like petroleum products. Lalu has to be congratulated for the passing on of the cost saved in operations to users as also of keeping part for the grandiose plans. The IT has been helping railways in cost reduction and Lalu is only going to exploit it for further efficiency and for passenger’s convenience. Any hick up in using IT enabled services would have seen railways in dire state without doubt. The government’s other departments should be learning their lessons before its too late. Use of modern materials in building coaches and the efficient engines together with economies of scale (made possible by the growing demand from industry and commuting populace) has all been responsible for the robust performance. These very factors would take railway finances to further heights. That the rupee gained was not spluttered is really praiseworthy aspect of the railway administration under Lalu. Ticket less travel has come down and pilferage of hauled goods is reduced due to fast rake movement and traceability of wagons , it seems. Lalu’s commonsense has been a good guide for the railways. He has been able to announce populist measures with ease and in natural manner without making the whole budget look ugly.

Now the numbers : Freight target for 08-09 is fixed at 850 million tonnes(+7.6%). The growth in passenger fare earnings is expected to be 8% in 08-09 against 16.5% last year. The gross revenue growth will be 12.6% in 08-09 against 16% in 07-08 and rightly so as it has to be on larger base. Cash surplus for the railways will be Rs25 K crs against the same roughly in 07-08 which itself was an improvement on budget estimate of Rs 20075 crs. Operating ratio for 07-08 worked out to 76.3% , an improvement over estimated 79.6%. ROCE of 21% for the railways is quite respectable but is without the revaluation of assets . Passenger amenities , cleanliness, newer projects of Rs 75 K crs , 1000 MW power plant with NTPC participation and public-private partnership projects of Rs one lac crores , all are going to be taken up over next five to seven years with full gusto and vigour.

This paves way for the present govt to do only such beautiful balancing of the populism and pragmatism in the union budget. Otherwise the son of soil will have scored far more points over the suave and educated one, both under the one who looks more of an onlooker than a participant.