Rail Budget Highlights

123jump.com Staff
26 Feb, 2007
New York City

Indian Railways Minister Lalu Prasad released his fourth railways budget. The current budget estimates to invest 31,000 crore rupees and expects the operating ratio to rise to 78%. The budget also lowere passenger tariffs between 2% and 8% and certain freight tariffs between 4% and 5%. Iron ore and steel products tariffs are expected to rise. Minister Prasad expects Railways to add 8,000 railways security staff.

Indian Railways fiscal year 2007 budget

The fiscal year 2007 budget was focused on higher freight transportation, lower passenger tariffs and investments in rail network and locomotive productions. Several industry associations welcomed investment in container traffic, improvement in logistics and support for higher containerization. Fare reductions in petrol and diesel, cement and fertilizers were welcomed.

Railways has allocated 31,000 crore rupees for capital improvement in the current year. Only 7,500 crore of this budget will be provided from the general government annual budget.

Passenger fare and schedule revisions

-Fare reduction of one rupee for mail and passenger trains for long distance.

-First class AC fares reduced 3% during peak season and 6% reduction in non-peak season.

-Super fast ticket surcharge will be lowered by two rupees to rupees 8.

-Daily tourist tickets in Mumbai will allow passenger to travel for multiple journeys.

-New trains will have six unreserved coaches, increase of two unreserved coaches in the regular trains.

-New pairs of 32 trains will introduced and pairs of 23 trains will see route extensions.

-Three hundred more stations will be improved and customer facilities will be added.

-The Minister designated the year of cleanliness at stations.

-Reservation charges for tickets purchased on Internet will be reduced.

-E-ticketing will be available at petrol stations and several bank branch locations.

-New eight ‘Garib Raths’ will be introduced.

-Railways to replace wooden seat with cushioned seats in unreserved coaches.

-Exclusive coaches for vegetable, milk and food transportation and a separate coach for senior citizens and single women traveler over the age of 45.

-The year 2007 is declared the year of cleanliness.

-Construction on east-west dedicated freight train will begin this year at a cost Rs 30,000 crores.

-Railways estimates that by the year 2011 annual passengers traveling by rail will increase to 840 crores.


Investments in security

-Railways will invest in security and use more cameras, detection and surveillance devices.

-Railway security force will add 8,000 staff in the current year.


Network Expansion

-Railway will add only 500 kilometers of new rail network and strengthen 1,800 km of rails and convert to higher gage 700 kilometers.


Operating performance

-For the current fiscal year the railways estimate operating ratio of 78.7%, near full capacity.

-Railways plan to spend 31,000 crore rupees to in capital improvement projects involving new bridge, flyovers and yard and facilities maintenance.

-Gross revenues for the railways rose 17% and passenger rail revenue rose 14%.

-Cash surplus before dividend is estimated to be near Rs 2,000 crores.

-Railways will increase locomotives production to 200 from 150 and 800 coaches will be added to the network.

-Initial study to look at the viability of high speed passenger trains at 300 km per hour speed will be conducted.


Freight transportation

-Freight tonnage rose 17%.

-Freight rates for returning trains will be lowered between 20% and 30% to fill wagons and cargo containers.

-Freight rates for diesel, petrol and ammonia reduced by 5%.

-Freight tonnage loading target is set at 785 tons in the fiscal 2007 and 1,100 million tons by 2011.

-Container traffic of 20 million tons is expected to jump to 100 million tons by 2011.

-Target for cement and steel tonnage is raised to 200 million for the fiscal 2011.

-Diesel operated trains will carry double stack containers and electric trains will carry triple stack containers from this year.

-Railways plan to explore private companies handling coal, cement and steel transportation.