The Railways Budget 09
Railways budget this year was the last budget presented by our Railways Minister
Shri Lalu Prasad Yadav, who has been holding this position
since 2004. Lalu Prasad Yadav has been perhaps one of the
best railways minister our country has had, having proved
his metal by tuning Railways from a huge deficit into a gov.
Agency earning profits in huge amounts even better than
private sector companies. This turn around was
acknowledged world wide, as it was included as a case
study in Harvard course and students came to study the
structure of the railways.
Some of the steps Taken by Lalu Prasad Yadav to restore
the confidence and bring a change in railways.
->Removal of plastic cups in trains and using only earthen ware for
distribution of tea.
->Similarly removal of all non-railways agencies(Bisleri,Aqua etc) from
supplying water only railways food and water(Neer) ws available.
->During Lalu's time railways accumulated around 90,000 crore
rupees of surpluses.There was an increase in both frieght and
passenger revenues earned by the railways.
->Lalu ensured that the return journey of trains can also be utilized
by discounting(as much upto 68%) heavily on return freight charges.
->Fully air-conditioned Garib Raths, free upgrade facility to higher
class to enable common people enjoy comfort.The cost of traveling
upto 1000Kms was only 500rs in a Garib Rath.
->There has been a (20%)shift in the number of people now traveling
via trains.
->Brought in the Innovative Idea of shifting of the class automatically into higher class on availability of seats.
->Removed the middle man operating between the railways and the contractors.
->Even when service tax was imposed on railway food,it was impossible for contractors to supply food without increasing costs as they used to give potato chips and those biscuit-type sticks (breadsticks) with soup.Another innovative step was taken to provide sabzi and dal.’ and the quality of food was maintained, without increasing the costs.
->Since railways earns approx 70% of revenue from Frieght charges, there was introduction of dedicated freight corridors to increase the revenue for railways.
Salient Features of the Railways Budget:
->ACROSS-THE-BOARD 2% CUT IN RAIL FARES
->FREIGHT RATE UNCHANGED
->Investment of Rs 2.3 lakh crore in 11th 5-yr plan; Rs 70,000 crore in the past four years
The proposed outlay of Rs.2,30,000 cr in the 11th 5 year plan (3 times more than that of the 10th plan) will be a major boost to large sections of industry involved in serving Railways.
->Paradigm shift in consumer services by implementing e-ticketing and call centres for enquiry.
->More Garib Raths to be included.
->Rail service to be extended upto Baramula in the next few years.
->Started work on Dehi-Mumbai freight corridor
->Feasibility on for Bullet Trains between Delhi-Patna, Delhi-Amritsar, Chennai-Bangalore
->25 survey planned for 8 doubling projects
->43 new trains in FY10
->6th Pay comm to benefit 1.4 mn rail employees
->Railways raised $ 100 million debt at 4 per cent.
->Significant improvement in safety record-accidents down to 194 in 2007-2008 as against 325 in 2003-2004.
->Dedicated Ludhiana-Kolkata freight corridor
->Eco-friendly zero discharge toilets in Railways soon
->Railway raised loan at 4% in Nov 2008
->The makeover of Railways has been better than that of private sector companies
->Railway raised $100mn loan at 4% in Nov 2008
->Ticket booking beyond Internet, petrol pumps,
->Average freight revenue rate up 3-8% in five years
->Goods train to have 78% more capacity
->Passenger trains to have 22% more capacity
->1,100 km of new rail lines installed in last five years
-> Freight revenues up 14%
->Revenues up 12% till December, more than expected
-> Wagon output to be increased from 6000 to 15,000 a year
-> Rs 37,905 crore to be invested in FY10
->Expects 19,320 cr cash revenue
->FY09 Operating ratio seen at 88%; FY10 Operating ratio seen at 89%
->FY10 freight revenue expected at Rs 59,060 crore
->To spend Rs 37,900 cr in FY10
There can be some points against the Interim Railways Budget09:
->The system’s capacity to run trains has been exploited to saturation. The ground reality is that there has been no important capacity generation in the last five years.
->Older coaches, locomotives and wagons continue in service with no improvement in passenger comfort or freight carrying capacity.
->It is not the right time to become over ambitious looking at the past effectiveness, Mr Laloo prasad has himself admitted that the economic meltdown has taken its toll on railways and predicts a loss of 10,000cr in the last quarter of the year 08.
-> The 43 Trains inroduced majorly concentrate on the Bihar front where there are political benefits for the UPA.
->Not much modernization of trains have been done,just stating of bullet trains and analysis in some sectors.
Shri Lalu Prasad Yadav, who has been holding this position
since 2004. Lalu Prasad Yadav has been perhaps one of the
best railways minister our country has had, having proved
his metal by tuning Railways from a huge deficit into a gov.
Agency earning profits in huge amounts even better than
private sector companies. This turn around was
acknowledged world wide, as it was included as a case
study in Harvard course and students came to study the
structure of the railways.
Some of the steps Taken by Lalu Prasad Yadav to restore
the confidence and bring a change in railways.
->Removal of plastic cups in trains and using only earthen ware for
distribution of tea.
->Similarly removal of all non-railways agencies(Bisleri,Aqua etc) from
supplying water only railways food and water(Neer) ws available.
->During Lalu's time railways accumulated around 90,000 crore
rupees of surpluses.There was an increase in both frieght and
passenger revenues earned by the railways.
->Lalu ensured that the return journey of trains can also be utilized
by discounting(as much upto 68%) heavily on return freight charges.
->Fully air-conditioned Garib Raths, free upgrade facility to higher
class to enable common people enjoy comfort.The cost of traveling
upto 1000Kms was only 500rs in a Garib Rath.
->There has been a (20%)shift in the number of people now traveling
via trains.
->Brought in the Innovative Idea of shifting of the class automatically into higher class on availability of seats.
->Removed the middle man operating between the railways and the contractors.
->Even when service tax was imposed on railway food,it was impossible for contractors to supply food without increasing costs as they used to give potato chips and those biscuit-type sticks (breadsticks) with soup.Another innovative step was taken to provide sabzi and dal.’ and the quality of food was maintained, without increasing the costs.
->Since railways earns approx 70% of revenue from Frieght charges, there was introduction of dedicated freight corridors to increase the revenue for railways.
Salient Features of the Railways Budget:
->ACROSS-THE-BOARD 2% CUT IN RAIL FARES
->FREIGHT RATE UNCHANGED
->Investment of Rs 2.3 lakh crore in 11th 5-yr plan; Rs 70,000 crore in the past four years
The proposed outlay of Rs.2,30,000 cr in the 11th 5 year plan (3 times more than that of the 10th plan) will be a major boost to large sections of industry involved in serving Railways.
->Paradigm shift in consumer services by implementing e-ticketing and call centres for enquiry.
->More Garib Raths to be included.
->Rail service to be extended upto Baramula in the next few years.
->Started work on Dehi-Mumbai freight corridor
->Feasibility on for Bullet Trains between Delhi-Patna, Delhi-Amritsar, Chennai-Bangalore
->25 survey planned for 8 doubling projects
->43 new trains in FY10
->6th Pay comm to benefit 1.4 mn rail employees
->Railways raised $ 100 million debt at 4 per cent.
->Significant improvement in safety record-accidents down to 194 in 2007-2008 as against 325 in 2003-2004.
->Dedicated Ludhiana-Kolkata freight corridor
->Eco-friendly zero discharge toilets in Railways soon
->Railway raised loan at 4% in Nov 2008
->The makeover of Railways has been better than that of private sector companies
->Railway raised $100mn loan at 4% in Nov 2008
->Ticket booking beyond Internet, petrol pumps,
->Average freight revenue rate up 3-8% in five years
->Goods train to have 78% more capacity
->Passenger trains to have 22% more capacity
->1,100 km of new rail lines installed in last five years
-> Freight revenues up 14%
->Revenues up 12% till December, more than expected
-> Wagon output to be increased from 6000 to 15,000 a year
-> Rs 37,905 crore to be invested in FY10
->Expects 19,320 cr cash revenue
->FY09 Operating ratio seen at 88%; FY10 Operating ratio seen at 89%
->FY10 freight revenue expected at Rs 59,060 crore
->To spend Rs 37,900 cr in FY10
There can be some points against the Interim Railways Budget09:
->The system’s capacity to run trains has been exploited to saturation. The ground reality is that there has been no important capacity generation in the last five years.
->Older coaches, locomotives and wagons continue in service with no improvement in passenger comfort or freight carrying capacity.
->It is not the right time to become over ambitious looking at the past effectiveness, Mr Laloo prasad has himself admitted that the economic meltdown has taken its toll on railways and predicts a loss of 10,000cr in the last quarter of the year 08.
-> The 43 Trains inroduced majorly concentrate on the Bihar front where there are political benefits for the UPA.
->Not much modernization of trains have been done,just stating of bullet trains and analysis in some sectors.
