a cash surplus before Dividend of Rs. 20,000 crore in fiscal* 2006-07
signifying an impressive Rs. 5300 crore in a year from Rs 14,700
cr. in the previous fiscal.
freight impact on industry is in the right direction and the general
approach of the budget is to improve efficiency and output. The
minister is taking innovative measures and if this tempo continues
Railways will be one of the pillars of our growth in the coming
P. Choudhary, Chairman,
CII-Railways Equipment Division
Railways are now working like a private sector corporation. We wish
other public services, especially in the social sector, like education
and health would follow suit," Habil
Budget proposal would give enough encouragement for huge capacity
building of steel, cement and coal sectors." - Venugopal
N Dhoot, President, ASSOCHAM
budget truly heralds a modern approach to managing the largest public
service through use of technology and innovation.” - R.Seshasayee,
fiscal year begins on April 1
to invest Rs. 230,000 cr in 11th Plan
Railways will invest Rs. 2,30,000 crore under the 11th Five Year
Plan which is almost three times the amount allocated in the 10th
Five Year Plan, this is disclosed by country’s Railways
Minister Lalu Prasad while presenting the Interim Budget for fiscal
2009-10. As India’s general election to country’s
Parliament is around, the minister submitted the interim budget
for first four months of next fiscal. The Railways have deployed
their investible surplus of nearly Rs. 70,000 crore earned between
2004-05 to 2008-09 to increase its productivity.
objective of larger investment is to increase the transport capacity
of the Railways and to reduce the unit cost of operations. Railways’
investment outlays have been stepped up from Rs.13,394 crore in
2003-04 to Rs. 36,773 crore in 2008-09. Railways would be completing
the work of 4900 kms of gauge conversion, 1800 kms of doubling and
laying 1100 kms of new lines, over five years.
pre-feasibility study to run bullet train between Delhi and Patna
will soon be started. In addition to the bullet train proposals
between Delhi-Amritsar, Ahmedabad-Mumbai-Pune, Hyderabad-Vijayawada-Chennai,
Chennai-Bangalore-Ernakulam and Howrah-Halida which were announced
in 2007-08 Railway Budget. The action for examining feasibility
study is already on for these routes.
the has announced reduction in passenger fares for non sub-urban
mail/express and ordinary passenger trains by one rupee for fares
costing up to fifty rupees per passenger. Since the fare for rail
travel for 10 km and below has already been reduced from four rupees
to one rupee, this reduction will not be applicable for second class
rail journey up to 10 km. Railways decided to reduce the second
class and sleeper class fares of all mail/express and passenger
trains this year to fulfill the aspirations of the long distance
Railways plans Rs 37,500 crore investment
INDIAN RAILWAYS has taken up biggest ever annual plan for the Railways
in fiscal 2008-09 entailing massive investment to the of Rs. 37,500
crore signifying 21 percent increase over previous year. The plan,
tabled by country’s Railway Minister during his 2008-09 Budget
speech on February 26 includes a total budgetary support of Rs.
7874 crore including Rs. 774 crore to be provided from the Central
Road Fund. The annual plan will have Internal and External Budgetary
Resources (IEBR) funding of 79%.
this plan, priority has been given to enhancement of rail capacity,
modernization of the railway, throughput enhancement on High Density
Network routes, traffic facility works and expansion and development
of the network. Construction of flyovers, bypasses, Intermediate
Block System (IBS), upgradation of goods shed etc., traffic facilities
works will be completed on priority.
outlay for doubling works has been increased to Rs. 2,500 crore,
traffic facility works to Rs. 984 crore and an outlay of Rs. 1535
crore has been proposed for projects under implementation by Rail
Vikas Nigam Limited (RVNL). Provision of Rs. 1730 crore for new
lines, Rs. 2489 crore for gauge conversion, Rs. 626 crore for electrification
and Rs. 650 crore for Metropolitan Transport Projects has been made.
To sustain magical turnaround in Railway’s performance
a ‘Vision 2025’ document would be finalized within
six months. The document will set forth targets for the coming
17 years for operational performance and upgradation of services.
It will also have a detailed action plan for achieving the
stipulated targets and necessary investment plans thereof.
proposed document would also contain details of customer-centric
modern passenger services and various freight schemes to sharpen
the competitive edge of the railways. Route wise planning
would be done to reduce traffic bottlenecks, expand the network
and modernize the railways. Passenger services will be governed
by two words - ‘comfort and convenience’. A multi-departmental
innovation promotion group will also be set up in the Railway
Board. All Railway employees and citizens will be able to
send their innovative suggestions to this group. The proposed
initiatives would inspire the Railway management and its employees
for new experiments and would lay a solid foundation for resurgent
safety related plan heads, provision has been made for Rs. 3600
crore for track renewals, Rs. 1520 crore for signal and telecommunication
works, Rs. 700 crore for Road Over Bridges and Road Under Bridges
and Rs. 600 crore for manning of unmanned level crossings. The Railway
Minister also sought additional funds to the tune of Rs. 1712 crore
from Ministry of Finance for national projects of Udhampur-Srinagar-Baramulla,
Jiribam-Imphal Road, Dimapur-Kohima, Azra-Byrnihat and Kumarghat-Agartala
new line, Bogibeel Rail-cum-Road Bridge and Lumding-Silchar-Jiribam,
Rangia-Murkongselek gauge conversion.
the year 2300 km broad gauge lines are likely to be completed. The
target for construction of broad gauge lines in 2008-09 is 3500
km. The construction of new line between Kakapore and Badgam in
the Kashmir valley has already been completed and the remaining
portion in the valley will be completed in 2008-09. Expressing gratitude
to the Hon’ble Prime Minister for deciding the funding of
National Projects in the North Eastern region, through 25 percent
funds from Railways Gross Budgetary Support and balance 75 percent
as an additionality, he proposed to create a non-lapsable Northeast
Rail Development Fund to expedite track construction process in
75,000 cr for line capacity expansion
investment of Rs.75,000 crore will be made over the next seven years
to augment line capacity on identified routes to create the required
capacity for carrying an additional 310 million tones freight traffic.
A blue print on the route-wise detailed study has been prepared
and accordingly, route-wise works would be undertaken in a phased
manner. This would include 124 works of doubling, third and fourth
lines, bye-passes, flyovers, crossing stations, intermediate block
stations, automatic signaling works and yard re-modelling.
works include construction of the Eastern and Western Corridors
and informed that 104 throughput enhancement works, already in progress,
would be completed over the next two years.The entire network would
be provided with Intermediate Block Stations (IBS) by March next
in passenger fare
Railways have reduced passenger fares of various classes while introducing
the Railway Budget for 2008-09 in the Lok Sabha today. There will
be a reduction of one rupee in the second-class fares of up to rupees
fifty for non-suburban mail/express and ordinary passenger trains.
The second-class fares of all mail/express and ordinary trains will
be reduced by 5% for the tickets costing more than fifty rupees
per passenger to benefit long distance passengers.
Railway Minister also announced a reduction in the fares for newly
designed Sleeper Class coaches by 2%. Fare reduction by 2% for the
newly designed AC 3 tier and AC Chair Car coaches has also been
announced. This reduction will be only half for popular trains and
during the peak period.
make the fares for higher classes more competitive, the Railway
Minister announced reduction of fares for AC-I class by 7% and AC-2
tier by 4%. This reduction would only be half for popular trains
and during the peak period. With this reduction, the process of
rationalization of AC class fares has now been completed.
Press Information Bureau, Ministry of Information and Broadcasting
Government of India
BUDGET HIGHLIGHTS (2008-09)