Rail Budget 2014-15 ***************************** Presenting his maiden Rail Budget in Lok Sabha on Tuesday Union Railway Minister Sadananda Gowda said that the bulk of India`s future railway projects will be financed through public-private partnerships. Gowda said that Indian Railways has the target to become the largest freight carrier in the world. The Railway Minister has also sought Cabinet approval for FDI in railways. The Indian Railways is saddled with a huge cash crunch of Rs 26,000 crore amidst a decline in the growth in passenger earnings. The new government has already increased railway passenger fares by 14.2 percent and the freight carriage charges by 6.5 percent. By a conservative estimate, the railways need Rs 20 trillion (USD 334 billion) of investment by 2020. That`s far in excess of the Rs 1.4 trillion the sector is estimated to earn this year even after an unpopular fare-hike pushed through last month. Here are the Highlights of Rail Budget 2014: -I am grateful to PM Narendra Modi for having reposed his faith in me, I promise to fulfill this responsibility -Indian Railways is the nations prime mover -Indian Railways cuts across all barriers of class and creed -I am flooded with request and suggestions for new trains, new rail lines -Everybody feels that there is a solution to the challenges that the Indian Railways faces -Quotes Kautilya “ïn the happiness of the people lies the happiness of the ruler” -Indian Railways carries 23 million passengers -Run 4700 freight trains with 3 million tonnes of freight everyday -Target to become the largest freight carrier in the world -Indian Railways carries anything and everything, it never says no to anything if it fits the wagons -We carry over 1 billion tonnes of freight every year -Freight business has grown but IR carries only 31% of total freight movement in the country -Network of 1.16 lakh km, 63,000 passenger coaches, more than 2 lakh wagons and over 13 lakh employees -Gross receipts in 2013-14 were Rs 139,558 cr, expenditure was 130,320 cr -Indian Railways has an operating ratio of 94% -This means we spent 95% of every rupee earned -Loss in passenger sector was 23 paisa per km, freight rates were increased to compensate -In the last ten years 99 new line projects were sanctioned out of which only 1 project is complete, there are 4 projects that are as old as 30 years -If this trend is allowed to continue it would lead to spending of many more crores without returns -41,000 cr was spent on laying of new lines but spent only 18,000 cr on doubling of tracks, though it was a priority over new lines -Indian Railways is starved of funds despite 100% advance payment by customers -Mismanagement led to severe fund crunch -Dilemma between choosing commercial viability and social viability -Time to take corrective actions, fare revision was one such step -Fare revision will bring in 8000 cr but IR needs more than 9 lakh crore only to complete the golden quadrilateral project -Only hiking fares is unrealistic, will work on Railways PSUs -Private investment in railway infrastructure – domestic as well as foreign -FDI in railways except railway operation -PPP route to generate revenue -Our target is to finance bulk of future projects through PPP mode -Support for timely completion of projects -Gross traffic receipt grew by 12 % but revenue target could not be reached -Internal resource generation was around 11,000 cr, short of target by over 2000 cr -Operating ratio deteriorated by 2.7% Budget estimates: -Anticipating a healthier economy. Gross receipt estimate pegged at Rs 164,374 cr, expenditure at 149,176 cr, freight growth of 4.9%, an incrementation of 51% over last year -Anticipate small growth in passenger grower -Freight revenue estimate at 157,770, passenger traffic revenue estimate at 44,645 cr -Thanks FM for increase resource allocation by 1100 cr in 2013-14 -Large part of higher plan outkay will go to imperove safety -Plan to scale down market borrwing to around 1100 cr -Maximum financial outlay to projectes that are scehduled to be complete this year -Allocate resources to high priority areas like safety, cleanliless, capacity augamenetatation -Foot over bridges, escalators at all major stations through PPP mode toilets, water shelters at all station -Involve NGO to improve passnger aminties -Work stations in select trains, pilot project this year -Expanding scope of online booking
Posted on: Tue, 08 Jul 2014 07:31:27 +0000
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