Zee Research Group/Delhi
Rail minister Sadananda Gowda has announced an all-time high figure of Rs 65,445 crore for 2014-15 plan outlay. The plan amount is 10.3 per cent higher when compared to the revised estimate of Rs 59,359 crore in 2013-14.
The figure is better than the street expectations of 8 per cent and this suggests that major capex spending would be done by the railways in FY15. Over a period of eight fiscal years, the plan outlay has grown at a compounded annual growth rate (CAGR) of 12.3 per cent.
The plan outlay is proposed to be financed through gross budgetary support of over Rs 30,000 crore, railway safety fund of Rs 2,200 crore, internal resources of Rs 15,350 crore, market borrowing of Rs 11,790 crore and likely mobilisation of Rs 6,005 crore through the through public private partnerships ( PPP) route.
The thrust of the plan is safety, passenger amenities, cleanliness and efficient station management. The rail minister has announced substantial increase in budget allocation for cleanliness in the current year. This has registered a 40 per cent increase over the previous year.
Further, it is estimated that over Rs 40,000 crore would be needed to be invested in track renewals, elimination of unmanned level crossing and construction of road-under-bridges and road-over-bridges.