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RAILWAY
ZONES Central
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INDIAN
RAILWAYS: Budget 2011-12 WILL 157-year-old Indian Railways spearhead the reforms without tears that even many a public sector undertakings in the country dared not to do even today? Railways minister Mamata Bannerjee* who had made it candid that passenger and essential goods and commodities have to be spared from any fare/freight hike continues her policy even while presenting her ministry's Budget for fiscal 2011-12 on February 25, 2011. She rather prefers to invite country’s corporate sector, investors to invest in the new projects that the Railways either have decided or are intending to take up in near future keeping its Vision 2020 in broader perspective. She is one to place social responsibility over and above every other things and to attain that she has to call for private sector participation in railway projects without diluting the importance and position of the Indian railways as one of the prime movers of Indian economy. PPP model is not anyway sending any message that “Railway is going for privatization, it will remain a Government organization”, she asserted. Following this policy she has not proposed the Railways Budget for FY 2011-12 any hike in the passenger fare and freight rate he Budget with highest ever plan outlay of Rs. 57,630 crore will have Rs. 9,583 crore for new railway lines and significant funds for passenger amenities.
The
Rs 57,630-crore Annual Plan for the year 2011-12 is the highest ever
plan investment by the Railways in a single year. The Plan is
proposed to be financed through Gross Budgetary Support (GBS) of
Rs.20,000 crore, diesel cess of Rs.1041 crore, internal resources of
Rs.14,219 crore, market borrowings of Rs.20,594 crore. Normally,
IRFC raises between Rs.9000-10,000 crore annually for leasing of
rolling stock. An additional amount of Rs.10,000 crore will be
raised in FY 2011-12 through tax free bonds for financing select
capacity enhancement works. Railways will ensure servicing this
debt of tax free bonds. Further, external source of financing
through Public Private Partnership (PPP), Wagon Investment Scheme (WIS)
etc. is expected to yield Rs.1,776 crore. Railways’ earnings are set to exceed the Rs 1 lakh crore mark for the first time. On the basis of freight traffic projection of 993 million tones and passenger growth of 6.4 percent over 2010-11, the Gross Traffic Receipts are estimated at Rs. 1,06,239 crore assuming a clearance of Rs. 200 crore from traffic suspense.
The Railways have fixed their Total Gross Earnings for 2010-11 at Rs. 94,742 crore, which is Rs. 177 crore higher than the budget. With the reduced traffic suspense clearance of Rs. 98 crore, Gross Traffic Receipts is higher than the budget target by Rs. 75 crore at Rs. 94,840 crore. Disruption of train movements has resulted in a loss of about Rs. 1,500 crore during the year and another Rs. 2,000 crore due to the ban on export of iron ore. As a result the loading target had to be reduced by 20 million tones to 924 million tones during 2010-11. However, in the revised estimates, goods earnings have been retained at the budget level based on trends of higher yield per NTKM. The Rs 57630-crore plan outlay will be financed through Gross Budgetary Support (GBS) of Rs. 20,000 crore, diesel cess of Rs. 1,041 crore, internal resources of Rs. 14,219 crore and market borrowings of Rs. 20,594 crore. External sources of financing through Public Private Partnership (PPP), Wagon Investment Scheme (WIS) etc are expected to yield Rs. 1,776 crore. To continue with its commitment to the expansion of the rail network the minister proposed an allocation of Rs. 9,583 crore for new lines, Rs. 5,406 crore for doubling the lines and Rs. 2,470 crore for gauge conversion projects. To overcome shortages in wagons, coaches and locomotives, Rs. 13,820 crore has been earmarked for acquisition of rolling stock. 56 new Express Trains, 3 new Shatabdis and 9 new Duronto Trains are proposed to be introduced during next fiscal year, besides 47 additional suburban services in Mumbai and 50 new suburban services for Kolkata. AC double-decker services will be introduced on Jaipur-Delhi and Ahmedabad-Mumbai. Services of 33 trains will be extended while frequency of 17 trains will be extended. 107 new line surveys will also be taken up during the year. The Railwasy plans to set up additional mechanized laundry units at Nagpur, Chandhigarh and Bhopal for improving the quality of linen in trains and 700 MW gas-based power plant at Thakurli in Maharashtra for energy requirement of the Railways. For better freight management 18,000 Wagons will be procured during 2011-12. As a unique initiative for the welfare of the poor the Minister proposed construction of 10,000 shelter units for track side dwellers in Mumbai, Sealdah, Siliguri, Tiruchirapalli on pilot basis. The minister proposed extension of concessions for physically handicapped persons in Rajadhani and Shatabdi Trains. Now Press correspondents will also be entitled to avail 50 percent concession with family twice in a year instead once in a year. At present the concession for senior citizens is extended to both men and women at 60 years of age, the Railway Minister proposed to reduce the age to 58 years in the case of women, besides increasing senior citizens concession from 30 percent to 40 percent. Declaring that one of the main objectives of her ministry is to bring social revolution to rail connectivity, the Railway Minister proposed a non-lapsable fund for socially desirable projects under the name of ‘Pradhan Mantri Rail Vikas Yojana’. She also proposed an increase of Rs. 771 crore to connect the underdeveloped areas of Orissa, Jharkhand, Chattisgarh, Bihar and Maharashtra through rail network. A non-lapsable Fund for Railway projects in the northeast region has also been proposed and all the state capitals of the region except Sikkim will be connected by railway network in the next seven years. Expressing concern over loss of rail properties during various agitations in recent past, she announced that the States which will ensure trouble-free train running for the whole year will be awarded with two new trains and two projects as a special package. Declaring 2011-12 as a ‘Year of Green Energy’ for Railways the minister proposed free supply of 14 lakh CFLs to railway households, increase use of solar energy at LC gates, stations etc., use of bio-diesel, CNG and LNG in locomotives. Highlighting the efforts being made to improve the amenities and to provide better experience to the passengers at stations the Minister said that 236 more stations will be upgraded as Adarsh Stations. A Multi-purpose pan-India smart card “Go India” will be introduced very soon to provide single window package for seamlessly pay for tickets for long distance, suburban, metro traveling. The passengers can use this card at booking counters, vending machines, internet etc. Besides this a new portal for e-ticketing will be launched shortly. Booking of tickets through this portal would be cheaper with a charge of only Rs. 10 for AC classes and Rs. 5 for others. A new Super AC class of travel with improved comfort and features and more exclusively has been propose. A feasibility study would be undertaken to increase the speed of passenger trains to 160-200 kmph with the help from Japan, she said. Announcing the measures for the welfare of railway employees, medical facilities is being extended to dependent parents, increase in the scholarship for the girl child of gangmen and group ‘D’ employees to Rs. 1,200 per month for higher education, 20 new hostels for children of railway employees and restructuring of all the cadres to provide adequate promotional opportunities. A separate sports cadre for railway employees is being created. Stating that the Indian Railways is passing through difficult financial phase the Railways minister said that, 6th Pay Commission’s Recommendations have heavily impacted internal resource generation of the Railways. Disruption of train movements during 2010-11 resulted in a loss of about Rs.1,500 crore and another Rs. 2000 crore due to the ban on export of iron ore. As a result, the loading target had to be reduced by 20 million tonnes to 924 million tonnes. However, in the revised estimates, goods earnings have been retained at the budget level based on trends of higher yield per Net Tonne Kilometer (NTKM). The total gross earnings have now been fixed at Rs. 94,742 crore which is Rs. 177 crore higher than the budget. With the reduced traffic suspense clearance of Rs. 98 crore , Gross Traffic Receipts is higher than the budget target by Rs. 75 crore at Rs. 94,840 crore.
On
the basis of freight traffic projection of 993 million tonnes and
passenger growth of 6.4 percent the Minister said that the
Gross Traffic Receipts are estimated at Rs. 1,06,239 crore during
2010-11 which will cross the one lakh crore mark for the first time.
While Working Expenses are estimated at Rs. 96,450 crore.
Ms Mamata Bannerjee is now the Chief Minister of West
Bengal. She was country's Railways minister till May 18, 2011. Mr.
Mukul Ray of her party , All India Trinamool Congress has been
appointed minister of State for Railways in addition to his current
responsibilities as minister of State for Shipping. |
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