Rail Budget: No Hike in Fares; 3 Freight Corridors to be Set up
Follow the latest from this year’s Railway Budget on The Quint.
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Reactions to Rail Budget 2016
Pawan Bansal, former Railway Minister was skeptical about this year’s Budget, saying that nothing Suresh Prabhu has proposed is new. The Budget incorporates incremental, obvious changes and goals. The only really new addition, he said, were the bio-toilets, and could be dangerous if used incorrectly.
He also said that the proposal to set up the East-West, North-South and the coastal corridors are only obvious additions to those that already exist. He asked what this Ministry’s financial model was.
Raghu Dayal, former CMD of CONCOR, says that while this year’s “tremendous focus” on passenger experience is a move in a positive direction, this year’s Budget did not address certain problems that the Budget ought to have considered.
Suresh Prabhu Presents Rail Budget
Presenting the Rail Budget, Railway Minister Suresh Prabhu said that this year’s Budget was not his alone, but “reflected the aspirations of each and every member of the railway family”.
- For year 2016-17, railways are expecting an operating ratio of 92 percent in fiscal year 2016-2017, as opposed to last year’s ratio of 90 percent.
- The Railways expect to generate a revenue of Rs 1,84,820 crore in this fiscal year; an increase of 10 percent from last year
- Planned capital outlay of Rs 1.21 lakh crore this fiscal.
- Time-tabled freight trains to be introduced by 2020.
- Railways have a saving of 8,720 crore from previous Budget estimates, which will be put into use this fiscal year.
- LIC has agreed to fund Rs 1.5 lakh crore over the next 5 years.
- Rs 8.5 lakh crore to be spent over 5 years for modernisation of railway infrastructure.
To Eliminate All Unmanned Crossings
- Mizoram and Manipur to be on the broad gauge map.
- Increased rail lines by 7 km a day this year, project 13 km for the next year.
- Railways will increase the number of freight corridors.
- Two new locomotive factories to be set up at a cost of Rs 40,000 crore under Make in India programme.
- To eliminate all unmanned cossings by 2020.
- 44 new project worth over Rs 92,000 to be implemented this year.
- 17,000 bio-toilets to be set up in stations.
Budget Incorporates Women, Senior Citizen-Friendly Measures
- To help mothers, baby food, hot milk and hot water will be made available in stations.
- Introduce a sub-quota of 33 percent for women in each of the reserved categories.
- Senior citizen quota per coach increased by 50 percent.
400 Stations to Have WiFi in Two Years
- Prabhu says 95 percent of trains will be running on time by 2020.
- 1,600 km of electrification this year and 2,000 km proposed for the next year.
- The proposed electrification is expected to increase demand for power in 2016-17. The sector is facing subdued demand growth
- Rs 24,000 crore contracts awarded since November 2014 as against Rs 13,000 crore contracts awarded in last six years.
- Indian Railways to surpass ambitious target of commissioning 2500 km of broad gauge lines, almost 30 percent higher than last year.
- Our mission is to ensure 100 percent transparency. Social media is also being used as a tool to bring that transparency.
- Will tie up with Google to put 400 stations under WiFi in 2 years.
- In 2015-2016, we have closed 350 manned level crossings and eliminated 1000 unmanned level crossings.
- Ghaziabad - Mughalsarai route is the most congested on Indian Railways. This is being closely audited.
Railway Minister Suresh Prabhu faces a stiff dilemma on whether to raise fares and freight rates in his second Rail Budget as railway finances come under tremendous strain.
- Falling revenue collection and increasing demand for funding stalled projects have raised expectations of fare hikes.
- A section in Railway Ministry does not favour hikes, with elections round the corner in four states and the price of diesel on the downslide.
- Prabhu will have to take a call on whether to impose a safety cess for strengthening safety measures to prevent accidents.
- Railways have already decided to run as many special trains on higher fares in popular routes, an indirect way of hiking fares.
- Upgradation of existing coaches with modern facilities and improved interiors are being planned in a big way to run trains on higher fares like the recently launched Mahamana Express between New Delhi and Varanasi.
Tightrope Walk
- Cross-subsidy from freight to passenger operation: Rs 30,000 crore this year
- Seventh Pay Commission burden: Rs 32,000 crore
- Railways earned Rs 136,079.26 crore during April-January period (Target was Rs 141,416.05 crore)
Massive Capacity Outlay Expected: Does Prabhu Have Wiggle Room?
Indian Railways had effected a 14 percent across-the-board hike in passenger fares in 2014 during the NDA regime and a 10 percent increase last year.
Despite the grim economic condition, the Railway Budget is expected to focus on massive capacity creation in the rail sector, with an increased plan outlay of about Rs 1.25 lakh crore. A significant amount will be earmarked for safety upgradation, electrification, doubling and modernisation of yards to clear traffic bottlenecks, sources said.
Rail Stocks Witness Mixed Trend Ahead of Budget
Rail stocks witnessed a mixed trend in an overall sluggish broader market ahead of the Rail Budget.
Stone India went up 5.51 percent and Titagarh Wagons gained 2.62 percent on BSE. In contrast, shares of Hind Rectifiers plunged 6.22 percent and Kalindee Rail Nirman Engineers fell 4.59 percent while Kernex Microsystems was down 4.49 percent and Texmaco Rail & Engineering 2.89 percent.
Meanwhile, in the broader market, the benchmark BSE Sensex was trading on a flat note, up 19.98 points, at 23,111.66 at 1100 hrs.
The Ministry of Railways Promises:
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