RAILWAY BUDGET

Focus and Long Term Goals -1. Safety; 2. Consolidation; 3. Decongestion & Capacity Augmentation; 4. Modernization; 5. Operating Ratio will be lowered to 84.5 percent from the current 95 percent, and to 74 percent by the terminal year of the 12th plan. The emphasis of the Rail Budget would be on improving infrastructure. "India Railways has to be benchmarked with Europe and Japan. Safety is the first priority and sole emphasis, "My focus will be on safety, safety, safety. Dinesh Trivedi Target of zero deaths & propose to set up an independent railway safety authority. Indian Railways will invest Rs 7.35 lakh crore during the 12th Five Year Plan period (2012-17), against Rs 1.92 lakh crore in the current one. It will double its contribution to India's GDP to 2 percent.

KEY POINTS OF RAILWAY BUDGET

Earlier announced that train fares would be increased nominal across all classes, the proposal was to hike fares ranging from two paise to 30 paise per kilometer. Announced the setting up of a body of experts to examine setting up of an independent Railway Tariff Regulatory Authority The railways was expected to recruit over one lakh people in the next financial year. The railways would induct two board members for marketing and safety. The outlay of Rs 60,100 crore proposed for 2012-13 will be the highest ever and the network will require Rs 14 lakh crore over the next 10 years for modernization. Indian Railways Stations Development Corp will redevelop stations and maintain them on pattern of airports Setting up of a Rail Khel Ratna Award to be given to 10 sportspersons every year.

REACTIONS ON FARE HIKE

Mamata Banerjee demanded a rollback of the 2nd class and sleeper class segment fare hikes. On 19th March,2012,congress has given in to a partial roll back of nonA/C fair hikes. This translates into a revenue loss of up to Rs.4300 cr, which is 60% of Rs7273cr incremental earnings from passenger segment projected for 2012-13. The rollback will knock off some 27% of the railways projected surplus of Rs 15,557 cr and worsen the operating ratio by about 2% points, OR will drop to about 87.5% from 84.9% Effects-Lower funds for capital expenditure and development related expenditure. Impact can be negated by higher budgetary support.

HIGHLIGHTS
Railways must attract 10 percent of the Rs 20 lakh crore government expects to spend on infrastructure during 12th Plan Railways expect gross budgetary support of Rs 2.5 lakh crore during 12th Plan. Collective challenge to formulate viable funding mechanism for modernisation.

Railways should contribute 2 percent of GDP from the present 1 percent.

487 approved projects at various levels of execution Market borrowing through IRFC at Rs 50,000 cr needed in 2012 Modernize rolling stock via fresh purchases of wagons, engines To create 1000 stations through PPP route in 5 years Delhi-Kolkata travel time to be brought down to 14 hours from 17 hours

HIGHLIGHTS CONTINUED
Facilitate running of longer and heavier freight trains *Total cost of signalling for five years is Rs 35,000 crores *17 gauge conversion projects will be completed in FY 12-13 *825 kms of gauge conversion projects to be completed

*Rs 6872 crore allocated under the new line plan

*Development of major stations to create 50,000 jobs *New lines to be laid in under-developed parts *Plan to enhance GPS use in railways *To complete over 45 new lines in FY13, stretching over 700 kms *Rs 1102 crores for passenger amenities in FY 13 as compared to Rs 700 cr in previous year

HIGHLIGHTS CONTINUED
Railways to take up linking of Agartala to Akura in Bangladesh. 31 projects of over 5,000 km being implemented with the support of state governments. All meter gauge, narrow gauge sections to be made broad gauge, except heritage lines, by end of 12th Five Year Plan. 725 km of new line completed in the current year, Rs 6,725 crore for new lines. 14 new rail line survey to be taken up in 2012-13. Budgetary support pegged at Rs 25,000 crore for the coming year as against projected requirement of Rs 45,000 crore. Logistics Corporation will be created for providing logistics solutions for rail users. New lines to be set up for Kolkata Metro

Railway Budget 2012-2013 as on March 14,2012

Dinesh Trivedi

Railway Budget proposes to increase fares across all classes

Mail Passenger fare hiked by 2 p/km. Express Train fare hiked by 3 p/km. Sleeper Class fare hiked by 5 p/km AC 3-tier fare hiked by 10 p/km AC 2-tier fare hiked by 15 p/km AC-1 fare hiked by 30 p/km Minimum fare and platform ticket to cost Rs 5 instead of Rs 3 now.

 The Railway Minister announces marginal hike in passenger fares ranging from 2 paise per kilometer to 30 paise per kilometer in various categories of trains. Promised to set up Indian Railways Stations Development Corporations to re-develop stations and maintain them like airports.

 Two double decker trains and Shatabdi trains are among the 72 new express trains announced in the Rail budget 2012-2013.

New passenger services include escalators at major stations, alternative train accommodation for waitlisted passengers, laundry services and AC lounges.
Specially designed coaches for differently abled persons will be provided in each Mail/Express trains acc to the minister.

Contd(/..)
improve cleanliness and hygiene on trains and stations within six months. A special house keeping body - take care of both stations and trains. All unmanned level crossings will be abolished in the next five years due to safety reasons.
Add 100 new trains and hire more than 1lakh employees. Gross rail traffic targeted to increase by Rs 28,635 crore to Rs 1,32,552 crore in 201213.

 Investment of Rs.5.60 lakh crore required for modernisation.

Independent railway safety authority to be set up as statutory safety body. Outlay of Rs.60,100 crore during 2012-13, the highest ever.

Green initiatives
Setting up of 200 remote railway stations as 'green energy stations' powered entirely by solar energy.

Introduction of mobile emission test cars to measure pollution level of diesel locomotives. Introduction of a 'Green Train' to run through the pristine forests of North Bengal.
2500 coaches to be equipped with bio toilets.

Analysis
POSITIVE Focus on cleanliness , safety and security . Increase in prices are acceptable as fares were untouched for past eight years. NEGATIVE Would have preferred special concession for students. Platform tickets are overly priced .