Rail Budget: Cheaper fares, lower freights, easy travel

Rail Budget: Cheaper fares, lower freights, easy travel

In his last full Railway Budget presentation, Railways Minister, Lalu Prasad Yadav offered everything from cheaper fares, lower freights to inclusion of technology in everyday rail life. Lalu had maintained that his Budget would focus on the common man. His Budget has promised the aam aadmi facilities such as more passenger trains, faster and easy travel procedures (ticket-booking and transport), reduction in passenger fares and fuel freights, discounts to females and senior citizens; to name a few. His Budget may have been directed to deliver part of his aforementioned promises.

Fare cuts

The Railway Minister has introduced a 5% cut in sleeper class as well as second class fares. Further fares for AC I, AC-II and AC-II have been cut by 7%, 4% and 3%, respectively.

All passengers above 60 years of age will now get a 30% discount, while females above 60 years would get a 50% discount.

Freight – related initiatives


The freight on petrol and diesel has been cut by 5%, while those on fly ash have been cut by 14%. The Railway Minister has cut the highest freight rate classification to 200. He sees the FY08 coal freight loading at 336 metric tonne. Yadav sees the total FY09 freight loading at 790 metric tonne as against 785 metric tonnes in FY08. He estimates around 310 metric tonne of additional freight loading in the next three years.

Easy Travel/ Better facilities

The Railways would be launching the Go-Mumbai Card/ Smart Card facility soon for easier ticketing for commuters. Besides, there will be an increase in ticketing counters to 15,000 in the next two years from the current 3,000 now. The number of auto ticket-sale machines would go up by 6,000 in the next two years. Yadav plans to look at leveraging the telecom boom for ticketing purposes. In this regard, trials for mobile ticketing have already started. The Railways plans to display online information in overnight trains of long distance.

For the convenience of commuters, especially senior citizens, 50 large stations across the country will have lifts and escalators, while 30 bigger stations would have multi-level parking system. The Ministry plans to run the Mother-Child Healthcare Express in alliance with the Rajiv Gandhi Foundation.

Apart from the facilities to the consumers, for those interested in joining the railways, the Group-D railway examinations would be taken in Urdu also, where it is the second language.

Technology updation

Lalu Prasad Yadav announced that the Government would introduce low maintenance and more comfortable stainless steel coaches from 2010. He said that Rs 4000 crore would be spent on green toilets for 36000 coaches in the next 5-year plan. All the trains will be run via online control in the next two years, Yadav promised. The trains would be linked via software communication by 2009.

The Railways need Rs 250,000 crore worth of funds over the next five years for IT upgradation, Yadav said. CCTVs and metal detectors would be put up at all stations, he informed. He will look look at multi model parks for Railways at various locations, he said.

Infrastructure updation

The Railways will start 53 new passenger trains. It will upgrade its infrastructure in the next seven years at the cost of Rs 75,000 crore. These funds would be employed to further develop saturated transportation lines. It plans to set up a 20,000 km high-density network. The work on connecting road for Pipavav Port has been completed, Yadav said. 25 tonne and 30 tonne axle-load trains will now be allowed for iron ore transport, he informed.

The Railway Minister informed that their 100 million tonne-worth business will come from the cement industry; which he targets as 200 million till 2011. Also, he aims to raise the annual steel traffic to 200 metric tonne in 2011 from the current 120 metric tonne.

Further, 50 new terminals would be developed for storage. He announced Special Purpose Vehicles (SPVs) for for links to Mundra, Kandla and Krishnapatnam ports.

Past Performance

According to the Budget Report, the Railways have a cash surplus of Rs 25000 crore in FY08. Its operating ratio is at 76%. Its work force stood at 14 lakh workers in FY08. The Minister informed that reduced fares increased volumes and profits.

The Railways has earned a cash surplus of Rs 25000 crore in FY08. Its operating ratio is at 76%. Its work force stood at 14 lakh workers in FY08. Yadav informed that reduced fares increased volumes and profits.

Some highlights of the Railway Minister's speech:

* Sleeper, II class fares cut 5%

* 10 Garib Raths in FY09

* Fares for AC-I cut by 7%, AC-II 4%, AC-III 3%

* Freight on fuels cut 5%

* Rs 68788 cr for 5 years cash surplus

* Dividend of Rs 88 rupees

* There were lean season discounts offered

* Peak season attracted surcharges

* Railway Fund Balance up at Rs 20,480 cr

* Railways adopted tariff to up market share; revenue

* Apr-Dec freight loading revenue is up 8-10% at Rs 34,700 cr

* Railways will look at leveraging telecom boom for ticketing

* There will be an increase in ticketing counters to 15,000 in 2 years from the current 3,000 now

* Revenue from passenger fares increased by 14%

* FY09 freight loading seen at 790 MT vs 785 MT in FY08

* FY08 rail operating ratio at 76.3%

* Trials for mobile ticketing have already started

* Railways to launch the Go-Mumbai Card/ Smart Card

* Online information display in overnight trains of long distance

* Rs 4000 cr to be spent on 36000 coaches for greent toilets in next 5 year plan

* Low mainenance and more comfortable stainless steel coaches to be introduced from 2010

* To have online control of trains in 2 years

* To link trains via software communication by 2009

* New coaches in all Rajdhani trains by 2010-11

* To start making steel coaches from FY09

* Level of Platforms to be upgraded for passenger convenience

* 30 Bigger stations to have multi level parking system

* 50 large stations to have lifts / escalators- for convenience of senior citizens

* 233 million ton loading was done in the year

* Additional earnings of Rs 2000 cr on freight service

* To upgrade infrastructure in 7 years at Rs 75,000 cr

* 310 mn tonnes of additional freight loading in the next 3 yrs

* 75000 cr in next 7 yrs to further develop saturated transportation lines

* To up auto ticket sale machines to 6,000 in 2 years

* Plan to set up 20,000 km high density network

* FY08 coal freight loading seen at 336 MT

* Work on connecting road for Pipavav Port completed

* 25 tonne and 30 tonne axel load trains allowed for iron ore transport

* 100 mn tonne business from cement industry

* 200 mn target targeted till 2011

* 50 new terminals to be developed for storage

* SPV for links to Mundra, Kandla, Krishnapatnam ports

* 25-30 tonne axle load trains to be started

* Annual steel traffic aim of 200 mt in 2011 vs 120 mt now

* To manufacture 20000 wagons in 2008-09

* To manufacture wagons having capacity of 22.9 tonnes in 2008-09

* 50 big terminals planned in Mumbai, Pune, Ghaziabad

* Concor to set up 8 depots

* Wagons would be available on lease here on

* Have 15 licensed operators for container trains

* To increase container train operators to 50-55 trains

* To have new wagon leasing policy

* New Bulk handling facilities to be erected for cement

* No busy season surcharge for cement transported in bulk via new facilities

* To have new policy for bulk handling terminals

* Special focus on door to door and value added services

* No busy season surcharge for bulk cement transport via new facilities

* SBUs (Strategic Business Unit) planned for cement, steel, coal, container sectors

* Rs 250,000 cr worth of funds required by the Railways over the next 5 years for IT upgradation

* 1 lakh crore worth of PPP (Public Private Partnerships) planned over the next 5 years

* Will look at multi model parks for Railways at various locations

* Railway property to fetch 4000 crore in 2008-09

* CCTVs and metal detectors to be put up at all stations

* 60 yrs and older passengers get 30% discount, female above 60 get 50% discount

* Plan fire prevention device in coaches on pilot basis

* Anti-fire gear to cost Rs 7,000 cr if pilot successful

* Mother-Child Healthcare Express to be run in alliance with Rajiv Gandhi Foundation

* Group-D railway examinations to be taken in Urdu also, where it is the second language

* To start 53 new passenger trains

Source: Moneycontrol.com