Information Madness

The Indian Railways will be announcing its annual budget of 2010 on Feb 24th 2010. The budget will be announced by the Union Railway Minister Mamata Banerjee.

According to different resources, the Railway Minister Mamata Banerjee is not planning to increase the passenger fare. There may be an increse in the fare for air conditioned coaches though. The budget might induce some freight rate increase which will be case specific.

I think the middle class Indians don't have to worry about the Indian Railways 2010 budget. So relax ... but you never know what can be the real outcome of the budget though..

Rediff has an interesting story on Indian Railways's dramatic improvement in its performance. While the Indian Railways was bankrupt in year 2000, it achieved an estimated Rs 25,000 crore (Rs 250 billion) -- or around Rs 13,000 crore (Rs 130 billion) after accounting for all expenditures, receipts and depreciation -- in 2008

Updates: Indian Railway Budget Highlights

Introduction

• Economic viability and Social responsibility – main consideration for taking up of the projects.
• Inclusive growth and expansion of rail network’ for development of the country.
• Special Task Force to clear proposals for investments within 100 days.
• A separate structure will be created within the Railways for implementation of the business models.

Commitments Fulfilled

• Of the 120 new trains, extensions and increase in frequencies announced, 117 would be flagged off by the end of March 2010.
• Recruitment policy of the Railway Recruitment Boards (RRBs) has been reviewed.
• RRB examination fee for woman candidates and those belonging to minority and economically backward classes waived.
• All question papers to be set in Hindi, Urdu, English and in local State languages and examination for a particular post will be held on the same date simultaneously by all RRBs.
• Izzat Scheme, implemented within three months of announcement.
• Work initiated in all the 67 Multi-functional Complexes (MFCs). Development of Adarsh Stations started in phases.

Passenger Amenities/Facilities

• 94 stations to be upgraded as Adarsh Stations
• 10 more stations identified to be converted as World Class Stations
• Construction of additional 93 Multi Functional Complexes
• Multi-level parking through PPP route.
• Six clean drinking water bottling plants to be set up through PPP for providing cheap bottled drinking water.
• SMS updates of reservation status and punctuality of trains to passengers,
• SMS updates on the movement of wagons to freight customers.
• RFID technology for tracking of wagons
• to provide modern trolleys at all important stations to be handled by uniformed attendants for senior citizens and ladies.
• Allotment of iron ore rakes to be rationalised scientifically and would be accessible through the web.
• Introduction of e-ticket based mobile vans for issuing tickets.

Safety and Security

• Automatic fire and smoke detection system to be introduced in 20 long distance trains.
• All the unmanned LCs to be manned within five years.
• 12 companies of women RPF personnel named ‘Mahila Vahini’ to be raised.

Staff Welfare and Health

• A new scheme “House for All” to be launched, to provide residences to all railway employees in the next ten years with the help of Ministry of Urban Development.
• MOU entered with Ministry of Health and Ministry of Human Resource Development for setting up of hospitals and educational institutions on surplus railway land.
• To set up about 522 hospitals and diagnostic centres, 50 Kendriya Vidyalayas, 10 residential schools on the pattern of Navodaya Vidyalaya, model degree colleges and technical and management institutions of national importance to benefit railway employees and their children.
• To set up 50 crèches for children of women employees and 20 hostels. Railways will also provide more numbers of community centres and stadia.
• Contribution to Staff Benefit Fund to be enhanced to Rs 500 per employee.
• Scope of safety-related retirement scheme to be expanded to cover all safety category staff with a grade pay of Rs 1800.
• To extend Rashtriya Swasthya Bima Yojana to all licensed porters, vendors and hawkers, from unorganised sector and socially challenged.
• To set up a state-of-the-art advanced loco pilot training centre at Kharagpur, an advanced railway track training centre at Beleghata and four multi-disciplinary training centres.

Freight Business

• A modified wagon investment scheme for high capacity general purpose and special purpose wagons to be introduced.
• Private operators to be permitted to invest in infrastructure and run special freight train.
• To set up automobile and ancillary hubs at 10 locations.

Other Projects

• Preliminary Engineering-cum-Traffic Survey (PETS) to be taken up for north-south, east-west, east-south and south-south DFCs.
• Six high speed passenger corridors identified, to be executed through PPP mode. To set up a National High Speed Rail Authority for planning, standard setting, implementing and monitoring these projects.
• To provide rail link between Akhaura on Bangladesh side and Agartala on Indian side.
• To new Railway projects viz., Jogbani (India) – Biratnagar (Nepal) new line and Jaynagar (India) – Bijalpur (Nepal) gauge conversion with extension upto Bardibas(Nepal) have been taken up to improve transport infrastructure between the two countries.

Financial Performance in 2009-10.

• Loading target of 882 MT likely to surpassed by 8 MT in 2009-10.
• Gross Traffic Receipts kept at Rs. 88,356 crore, i.e an increase of 10.7%.
• The full impact of VI CPC fully absorbed within the Railway resources.
• The current dividend liability to be fully discharged.
• Annual Plan kept at Rs 40,284 cr.

Budget Estimates 2010-11

• Freight loading targeted at 944 MT – an increment of 54 MT; number of passengers likely to grow by 5.3 %.
• Gross Traffic Receipts estimated at Rs. 94,765 crore, i.e Rs 6490 cr more than 2009-10.
• The dividend payable to general revenues kept at Rs 6608 cr.
• Budgeted operating ratio 92.3%.

Annual Plan 2010-11

• Highest ever Plan Outlay at Rs 41,426 cr., an increase of Rs 1142 cr over 2009-10
  • New Lines – Rs 4411cr.
  • Passenger Amenities–Rs 1302 cr.
  • Metro Projects – Rs 1001cr.
• Aquisition of 18000 wagons.
• Additional budgetary support of Rs 3701 cr sought for 11 National Projects.
• Surveys for 114 socially desirable projects connecting backward areas to be taken up.
• 54 Surveys for new lines, 2 for gauge conversion, 7 for doubling and 5 others to be taken up.
• Master Plan for the development of rail infrastructure in the Northeast region to be drawn up in consultation with the Northeast Development Council and the state authorities concerned.
• 1021 km of New Lines to be completed. 9 new new line projects announced.
• 800 km of gauge conversion and 700km of doubling targeted.
• Several projects being taken up on cost sharing basis with State Governments and on PPP mode.

Concessions

• Technicians of regional film industry when travelling for film production related work to be eligible for 75% concession in Second Sleeper and 50% concession in higher classes in all trains.
• Cancer patients going for treatment to get 100% concession in 3 AC and Sleeper Class
• 50% concession to spouse of the correspondents extended to the companion of those correspondents who do not have a spouse, and dependent children up to 18 years.
• Service charge on e-tickets to be reduced to Rs.10 for Sleeper Class and Rs.20 for AC Class.
• Reduction of Rs 100 per wagon in freight charges for food-grains for domestic use and kerosene.

New Suburban services

• 101 new suburban services to be introduced in Mumbai area.
• More services to start in Chennai and Kolkata areas.

Special Trains

• Sanskriti Express to run across the country to mark the 150th birth anniversary of Kabiguru Rabindranath Tagore. It is also proposed to take this train to Bangladesh.
• Ladies special trains to be renamed as ‘Matrabhoomi specials’.
• 3 unreserved trains named as ‘Karambhoomi trains’ to be introduced.
• A new weekly express train service ‘Janmabhoomi express’ to start between Ahmedabad and Udhampur .
• Special tourist trains called “Bharat Tirth” to start on 16 routes.
• 6 long route Duronto trains and 4 short distance Duronto day trains to be introduced.

Other New Train Services

• 54 new train services to be introduced.
• 28 new passenger train services, 9 MEMU and 8 DEMU services to start.
• Extension of 21 trains and increase in frequency of 12 trains announced.