labels: economy - general, indian railways, railways
Surplus railway budget, fare-cuts across the board news
26 February 2007

New Delhi: Presenting the Indian Railways' (IR) annual budget for 2007-08, railway minister Lalu Prasad Yadav disclosed that the railways had a cash surplus before dividend of Rs20,063 crore, up from Rs14,700 crore in 2005-06,

The budget had a net revenue Rs14,870 crore and surplus, after payment of dividend of Rs3,579 crore and deferred dividend of Rs.663 crore, is expected to be Rs10,627 crore.

The minister complimented all railway employees for the additional earnings generated by IR, pointing out that the additional income had been generated without placing any burden on the common man.

Amidst determined anti-government sloganeering on the Quattrocchi episode by the opposition, Yadav rolled out a "pro-poor" railway budget proposal that had fare-cuts across the board and provided a major thrust on investments in railway infrastructure.

Major highlights:

  • Cash surplus for FY 2006 of 20,000 crore
  • Rs200 billion budget surplus in FY07
  • Cash surplus seen at Rs 106.27 billion
  • Passenger earnings up 14 per cent in nine months (April- December) while freight earnings went up 17 per cent for the same period
  • Passenger fare business has improved due to increased volumes
  • Outstanding freight performance
  • Efforts to increase container traffic five-fold to 100 million tonnes by 2011-12
  • Operating ratio seen at 73.7 per cent
  • ROCE at 32 per cent
  • Fund balance at Rs 16000 crore
  • Extra loading of 7 MT seen this year. Incremental loading of 60 million ton in FY 07 but not in FY 08
  • Next five years Railways to invest massively in container operations
  • To start three-storey container trains on pilot basis
  • Freight on steel, cement up 5-7 per cent in FY 07
  • NTPC, other companies to help in new construction
  • IRCON, private partnership options being explored
  • Steel traffic market up significantly
  • Wagon production seen up 10 per cent
  • Traffic discount to up high axle wagon output
  • 22.9 and 25 tonnes extra loading wagons in FY 08
  • Covered wagon production would be closed
  • Wagon manufacturers permitted to supply wagons of their own designs based on RDSO recommendations
  • New wagons to replace outdated ones
  • 20,000 km high-density network to be focused upon and lines to be upgraded
  • 11,000 new wagons needed for high-density lines
  • Promises new lines to aid steel, power plants
  • Losses in coaching business to decrease by several hundred crores despite reduction in fares
  • Efforts to be made to increase number of unreserved second-class coaches from four to six
  • Focus on rail customer service. Customer complaints to be disposed of within three months
  • Special complaint redress cell for freight customers
  • Railways to observe 2007-08 as 'cleanliness year'
  • 700 additional bogies added to popular trains last year; to add 800 more coaches in FY 2007-08
  • Cushioned seats to replace wooden seats in unreserved second classes coaches in 2007-08
  • Students appearing for UPSC exams to be provided with 50 per cent discount
  • Special bogeys developed for the handicapped. 1250 such coaches have already been developed
  • Lower berths to be reserved for senior citizens and women above 45 travelling alone
  • Train enquiry call centres to start functioning; passengers will be able to dial 139 at local rates from anywhere in India
  • Fresh investments to improve infrastructure around railway stations
  • TTEs to be provided with hand-held computers for on the spot reservations
  • 6,000 automatic ticket vending machines to be installed in major cities
  • Coaches with higher sleeper capacity of 80, up from 72
  • Construction of eastern and western dedicated freight corridors to start in 2007-08
  • PPP options to be explored to modernise metro and mini-metro trains
  • Priority for conversion of remaining metre gauge lines to broad gauge during the 11th plan. To cut freight losses
  • To introduce 300-350 km/hr trains
  • Development of 225 stations to be completed by March
  • Pre-feasibility studies to begin for construction of high-speed passenger corridors
  • Major capacity enhancement planned on Mumbai suburban system in five-year plan
  • Rs5,000 cr investment for Mumbai local trains

also see : Text of railway minister's speech

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Surplus railway budget, fare-cuts across the board