Rail Budget: No hike in passenger fares; freight rates cut
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Last Updated: Thursday, February 25, 2010, 12:32
  
Zeebiz Bureau

New Delhi: Union Railway Minister Mamata Banerjee on Wednesday presented a populist Rail Budget for 2010-11 fiscal by leaving the passenger fares untouched, cutting the freight charges of grain and kerosene, and announcing 52 new long distance trains. The Budget also proposed enhanced cooperation with the private sector to expand the world’s second largest railway network.

In her 110-minute speech in the Lok Sabha, the minister said “social responsibility” is the motto of the Railways rather than economic viability, and added she did not want to “impose any burden” on the citizens.

"Therefore, I do not propose any increase in passenger fares of any class or category of trains. Similarly, I do not intend to increase freight tariff," Banerjee said.

She further ruled out privatization of the railways, but said the expansion of the PSU could be undertaken through public-private partnership (PPP) mode.

BUDGET HIGHLIGHTS:

Passenger Amenities

  • Connectivity is key to India’s growth

  • People’s need for rail infrastructure unfulfilled – investment model has been drawn

  • Special drive for passenger amenities and cleanliness

  • Introduced ‘janata ahaar’

  • Other suggestions regarding food being looked into

  • To provide economical food in trains

  • Provide cheap, clean drinking water to passengers

  • Six bottling plants for clean drinking water through PPP model

  • SMS reservation, updates, double-deckers implemented

  • Attendants for senior citizens, children and women for boarding and alighting

  • E-ticket based mobile van to provide reservation at important places like hospitals, court, IT centres

  • Introduce green toilets in at least 10 trains

  • 52 new long distance trains, 28 passenger trains and 10 Durontos to be launched

  • Tourist trains to run on 16 routes

  • Modern trolleys for senior citizens and handicapped

  • Service charge on sleeper class cut to Rs 10

  • A/C class service charge cut from Rs 40 to 20

  • Fare concession to film industry, journalists

  • Fare concession for children of journalists

  • E-ticket service charges reduced

  • Free travel for cancer patients on AC-3 class

  • Of 120 new trains, 117 to be flagged off by March

  • To launch 2 double-decker trains on pilot basis
  • To open ticket counters at village, panchayat level

  • To introduce more passenger trains

    New Trains

  • Of 120 new trains, 117 to be flagged off by March

  • Routes of 21 trains to be extended

  • A special train from India to Bangladesh to commemorate 150th anniversary of Rabindranath Tagore

  • ‘Karmabhoomi’ trains for working class in Punjab, Bihar, Bengal

  • To launch new express trains ‘Janambhoomi’

  • To launch cross-country ‘Bharat Tirath’ trains

    Freight:

  • No change in freight rates

  • Special freight trains for vegetables, vehicles

  • Roll in and roll off service

  • Western corridor agreement to be signed next month

  • Four new dedicated freight corridors

  • East west corridor to be set up

  • South-South corridor also proposed

  • Rs 100 per wagon cut on kerosene and food grain freight

  • Freight loading at 890 million tonnes during FY’10

  • See 944 million tonnes freight loading target FY11

  • To exceed freight loading target by 8 million tonnes

  • To notify policy for special freight trains soon

  • To ink Western Corridor agreement with Japanese firm

  • Door-to-door service for freight

  • Need high speed freight corridors

  • To allow iron ore Rake booking via internet

  • Premium tatkal service for parcel, freight movement

  • To buy 480 locomotives in FY11

    Budgetary Figures:

  • FY 11 gross budgetary support seen at Rs 15,800 cr

  • Freight loading target at 944 million tones in FY 11

  • FY 11 pension fund at Rs 14,500 cr

  • FY 11 working spend at Rs 87,100 cr

  • FY 11 plan outlay at Rs 41,426 cr

  • FY 11 market borrowing at Rs 91,200 cr

  • FY 11 new line allocation to cost Rs 4411 cr

  • FY 11 operating ratio seen at 93.2 percent

  • Rs 1,302 crore for passenger amenities in the 2010-11 against Rs 923 crore last year

  • Gross traffic receipt for 2010-11 pegged at Rs 94,765 crore

  • Train passenger traffic to rise by 5.3 percent in FY 11

  • Despite slowdown, Railways to exceed freight loading target by eight million tonnes during 2009-10

  • Revenue from non-core business of Railways to go up from Rs 150 crore to Rs 1,000 crore

  • Saved Rs 2000 crore due to austerity drive

  • Impact of Sixth Pay Commission at Rs 55000 crore

  • Plan to raise Rs 10,000-20,000 cr in 2011

  • IRFC FY 11 market borrowing at Rs 88,400 cr

  • Rs 1000 cr set aside for Metro projects

  • FY11 dividend to exchequer Rs 6,608 crore

  • Railways’ FY09 combined turnover Rs 13,641 crore

  • Railways FY09 net profit Rs 1328 crore

  • To surpass FY10 freight target

  • FY10 revised estimate on gross earning Rs 88,200 crore

  • Rs 6,490 crore net revenue revised estmate for FY10

  • FY11 dividend liability Rs 6600 crore

  • FY11 additional budget support Rs 3,700 crore for 11 projects

  • Revenue via advertisement seen up at Rs 1000 crore

    Infrastructure:

  • Work started on 67 multifunctional complexes

  • To set up 93 more multi-functional station complexes

  • To construct more subways, low height flyovers

  • More underpasses to be built

  • To set up coach factory in Singur if land available

  • To set up "Golden Rail Corridor"

  • To upgrade 94 stations as 'Adarsh'

  • To upgrade 10 major stations as 'worldclass'

  • World-class stations to start within timeframe

  • High-speed rail network a priority

  • PPP model for multi-layer parking

  • Rail network of 64,015 km so far

  • Automobiles hubs in 10 centres in PPP mode

  • 1000 kms of new lines in one year vis-à-vis 180-km record so far

  • Target of 25000 kms in Mission 2020

  • New loco training centre to be set up in Kharagpur

  • Track training centre in Belighata, West Bengal

  • Chittaranjan Locomotive Works (CLW) capacity to be increased from 200 to 275 locomotives/per year

  • Five new coach factories to be set up

  • Rae Bareli, Palakkad, Madherpura coach factories to start functioning this year

  • Wagon repair shop in Badnera in Maharashtra

  • Design development centre for wheels to be set up in Bangalore

  • Chennai coach factory to be modernised; a second factory to be also set up

  • Rail Axle Factory in Mumbai, Amravati, Jalpaiguri

  • Wagon factory to be set up in – Secunderabad, Bhubaneshwar, Guwahati

  • To set up diesel plant in West Bengal

  • Wagon repair factory in Mumbai

  • Railways to acquire 18,000 new wagons

  • Port connectivity via PPP

  • To achieve 700 km doubling, 800 gauge conversion in FY 11

  • To achieve 1000 km electrification in FY 11

  • 1,021 route km doubling to be complete in a year

  • Gauge Conversion: Triunalveli-Tensaki, Dindigul-Palakkad, Chintamani-Chikballpur, Katiahar-Tejnaiarnapur, Chidwara-Nainpur-Mandla

  • Doubling: Talcher-Sambalpur, Mancheral-Pedampaet

  • Third-Line: Durg-Rajnandgaon

  • Electrification: Chapra-Varanasi-Allahabad, Bellary-Vasco, Bankura-Rainagar, Secundrabad-Medchal

  • To set up new refrigerated container unit

    Investment:

  • Large quantum of investment needed for Railways

  • To invest Rs 858 crores under PPP projects FY11

  • Special task force to clear proposals for investment within 100 days

  • No privatization but a new business model to be developed

  • Separate structure for implementation of biz model

  • Will involve employees and unions in investment programme

    Announcements:

  • Have created Mission 2020 - divided in short, medium and long terms

  • Mission 2020 will be a 10-year plan

  • English, Hindi, Urdu and local languages to be used for railway exams

  • Examination fee to be waived for poor, minority, SC/ST and women candidates

  • Concession for madrassa students, artists and journalists achieved

  • To improve technology to reduce incidents of accidents

  • Anti-collision devices (ACDs) and fire fighting devices to be put up

  • ACDs functioning in NF railways, to be introduced in 3 more zones

  • Of 17,000 unmanned crossings, 3,000 to be manned

  • All rail crossings to be manned in 5 years

  • Modern trolleys at all important stations

  • Automatic fire detection to be implemented on pilot

  • To provide fire alarms in long distance trains

  • New signaling system to be installed

  • More amendment for RPF reorganisation

  • To raise 12 companies of women RPF - to be called as ‘mahila vahini’

  • Ex-servicemen to be inducted in RPF

  • Five sports academies at Delhi, Secunderabad, Chennai, Kolkata and Mumbai

  • Higher rail employment for sports persons

  • Increased employment opportunities for sportsmen

  • To run special trains for Commonwealth Games

  • Rabindranath Tagore related museums in Bolpur and Howrah

  • Rail Cultural Board to be set up

  • MoU with HRD and Health Ministries to set up 381 diagnostic centres across India

  • 101 secondary hospitals to be set up

  • Model degree colleges, technical institutes will be also set up on railway land

  • ‘Rashtriya swasthya bima yojna’ to be extended to porters and vendors

  • Multi-Functional health centres in 522 locations

  • New housing scheme for railway employees

  • Research partnership with premier institutes

  • Ten ecological parks to be set up

  • Employment to one member of the land losing family

  • 20 hostels for women and children

  • Funding for all Metro projects raised by 55 percent

  • States to share burden of doubling, electrification

  • Master Plan for Northeastern region

  • To route socially desirable projects through plan panel

  • 50 crèches for Railway employees’ children

  • To arrange funds for long term plans

  • To extend health scheme for hawkers, vendors

  • Rail research centre to be set up at IIT Kharagpur

    Other Highlights:

  • Have got 5000 requests, but to do something is better than doing nothing at all

  • Administrative delays deter investors

  • Pitches for tie-up with businesses for development of railways

  • Want to be bench-marked with the best

  • Lagging in roping in post office

  • All commitments have been fulfilled in a span of just 7 months

  • Increased financial powers of field officers

  • Slams ‘rail roko’ protests as they cause inconvenience

  • Law and Order a state subject, not Railways’ responsibility

  • Railways will be the lead partner of Commonwealth Games

  • 14 lakh employees in Indian Railways

  • Passenger earning impacted due to adverse climatic conditions in North India

  • Considered economic viability while formulating budget

  • Also considered social responsibility in budget

  • Objective is inclusive growth

  • Mission is country's development

  • Goal is to unite country via railways

  • Railways is lifeline of country

  • Expectations from Railways high

  • Want to help everyone with limited infrastructure facilities

  • Rail infrastructure needs still unfulfilled

  • Need innovative financing for Rail projects

  • Need to ensure simple, friendly policy norms

  • To better infrastructure by joining hands with private sector

  • Need to develop new PPP business model

  • Separate structure for implementing plans

  • Security of passengers also a challenge

  • Want to strengthen Railway Police Force

  • No forceful acquisition of land for rail projects

    Suburban Services:

    Mumbai:

  • 101 additional local train services

  • MUTP Phase 1 by year-end, Phase 2 by 2014

    Chennai:

  • New services in Chennai suburban services

  • MRTS from St Thomas Mount to Vallichary in progress

    Kolkata:

  • Extension of Kolkata Metro

  • Five metro stations to be renamed and redeveloped

  • New services from Sealdah

    New Lines:

  • Lohardaga-Korba

  • Madurai-Kottyam

  • Maduri-Tuticorin

  • Mysore-Medekeri

  • Amethi-Shahgunj

  • Baramulla-Kupwara

  • Bilapur-Rampur

  • Chandigarh-Dehradun

  • Daurala-Bijnor

  • Dhule-Amlanar

  • Dindigul-Kumli

  • Etawah-Kashganj

  • Pawal-Alwar

  • Pandurranjgpuram-Bhdravhalam

  • Patilai-Kurukshtra

  • Pendra road-Korba

  • Bilaspur to Leh via Manali

  • Bhiwada-Bina

  • Jagdalpur-Dantewada

  • Jaisalmer-Barmer

  • Jammu-Poonch

  • Ramtek-Goteganj

  • Ranchi-Kanji

  • Rampur-Gangtok

  • Roorkee-Hariwdwar

  • Sitapur-Bhairach

  • Todi-Chatra

  • Jhaja-Giridih

  • Joginder-Mandi

  • Kachiguda-Chitral

  • Tumkur-Davengere

  • Udhampur-Katra-Doda-Kishtwar

  • Agartala-Akura-Bangladesh


    First Published: Thursday, February 25, 2010, 12:32


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