RAILWAY BUDGET - REVITALISING, REJUVENATING AND REFORMATORY
By Ruma Dubey
This was a welcome Budget in the sense that it was not the usual hand-clapping kind of Budget, where new trains and new lines are announced. Yes, he did not hike passenger fares but given the drop in fuel price currently, a hike at this time, which would have invited protests, was simply not worth it. And the Railway Minister is looking at other modes of increasing revenue for the railway and passenger fare hike is not really what he expects to pump up the topline. He is looking at freight hike to boost revenue and that in the real sense, when looked at from the people’s perspective, is what indeed makes sense.
There was indeed a freight rate hike for cement, iron and steel and coal. And this did not go well with the market as this rate hike without passenger fare hike was looked upon as being neither progressive nor logical. Taking the easy way out, hiking freight rate with no passenger fare hike is taking the easy way out without hurting the voters’ banks.
This apart, the Budget is progressive and first baby steps are being taken to remove corruption and correct the various maladies plaguing the sector. Apart from the populist move on passenger fare hikes, thankfully we did not see the usual slew of new trains being introduced. The overall theme of the Budget was to improve the experience of the consumer and weed out black money from the sector. The intent of the Railway Minister and his past record makes us believe that things might actually get better. But once again, based on all our past experiences, we do not have the faith yet to give out a cry of “hallelujah” and believe that all that which was announced would actually get implemented.
The aim of the Railway Minister was truly inspiring – he has said that he wants to create a virtuous cycle of revenue generation for the Railway. His aim – make railways self-sustainable, make the journey comfortable for the passengers, increase the capacity of the Railways from the current 1 billion tonne to 1.5 billion tonne.
Some called this Budget transformational as the Budget actually chalked out a road map, gave it a clear direction and set out a time frame. Revamping people and the working of the Railway, using PPP mode is seen as a truly new visionary kind of Budget. Digitising railway land will be a Herculean task but at least we are going to begin…..
If this Budget is a harbinger of things to come on 28th Feb, well, India seems to be on a new progressive path.
Quick highlights:
- No passenger fare hike
- Rs.8.5 lakh crore will be invested in Railways in next 5 years
- Market borrowing of Rs 17,655 crore proposed for FY16.
- 17,000 bio-toilets to replace existing toilets
- ‘Operation 5’ minutes to ensure that a passenger travelling unreserved can purchase a ticket within 5 minutes
- SMS alert services for passengers to inform them about arrival and departure of trains
To invest Rs 1 lakh crore on station redevelopment as a part of its 5-year plan . - Tickets can now be booked 120 days ahead of travel date, instead of current 60 days.
- Wi-Fi to be available at 400 railway stations.
- The speed passenger trains across nine corridors will be increased to 160-200 km from 110 km
- To introduce air-conditioned coaches for suburban trains
- 800 km of gauge conversion will be commissioned
- Can order food online in 108 trains, can order on IRCTC website ï‚· to increase track capacity by 10 per cent to 1.38 lakh km
- Feasibility report of high speed train between Mumbai and Ahmedabad expected by mid-2015
- Wagon-making scheme to be reviewed to make it easier for private investment
- To improve cleanliness & design of bed linen
- Hand-held devices for ticket checkers
- Transport Logistic Corporation of India to be set up to aid expanding freight handling capacity and provide end-to-end logistic solutions
- PPP model will help to augment resources and generate more employment
- PPP cell to be revamped to make it result oriented
- Freight rate hiked – 2.7% for cement, 0.8% for iron and steel, 10% for urea, 6.3% for coal, 0.8% for kerosene and LPG, 1% for hi-speed diesel.
- To set up Financing Cell in the Railway Board to raise funds from pension, insurance & multilateral agencies