Railway Budget: BY:-Rahul Sharma Salman Sandeep Gautam Sritam Tanya Karanjai Thulasiram

Railway Bu dget
BY:Rahul Sharma
Salman
Sandeep Gautam
Sritam
Tanya Karanjai
Thulasiram
Introduction
Railway Budget of Indiaalso
referred asRail Budgetis the
Annual Financial Statement of the
stateIndian Railways, which
handlesrail transport in India. It is
presented every year by theMinister
of Railways, in theparliament.
The Railway Budget is presented
every year, a few days before
theUnion budget of India.
PASSENGER AMENITIES/ SERVICES

First goal to improve facilities in railways and
make improvement in customer experience.
To achieve it, Indian Railways will work on
Swatch Rail Swatch Bharat Mission.
For this, they will hire professional agencies to
take care of cleanliness in stations and railways.
Special training would be given to the
employees.
Railways will install machines which would

convert waste to electricity.
Railways will upgrade 17000+ current toilets
in stations to Biodegradable toilets.
They will take help of RDSO to design
vacuum toilets in passenger trains within next
6 months.
To construct 650 toilets in stations.
They will provide disposal bags to the
passengers.
In non-AC coaches dustbins will be provided.

Operation 5 minutes for the passengers on
the spot to buy tickets.
Booking of ticket can be done 4 months early
also instead of 2 months.
Installation of more water vending machines in
railway stations.
Measures for improving Safety

& Security
Provision of ` 1,785 crore for Road-over-bridges
Elimination of unmanned level crossings
4000 women RPF constables to be recruited in
addition to 7000 RPF constables.
Pilot project on Automatic door closing in
mainline and sub-urban coaches.
RPF escorting teams in trains to be provided
Advanced technology for rail-flaw detection
Building boundary walls around stations
through PPP
Power sector hit by rail

budget
Increased freight rates for coal by 6.3
per cent
Reparations :
Power tariff directly affected depending on distance
from mine
Power tariff may rise as the transportation cost has
increased
Freight has to be paid by customer so PSU may not get
affected
Increase in generation cost by 2 percent
3-5 paise hike in electricity tariff per unit expected
Speed of Train:
Capacity Augmentation:
Speed on nine railway corridors Fast-track sanctioned works on

to go up to 200 km per hour
7,000 kms of double/third/fourth
So that inter-metro journeys like lines
Delhi-Kolkata and Delhi-Mumbai Commissioning 800 km of gauge
can be completed overnight
conversion targeted in current fiscal
Average speed of freight train is To invest Rs 650 billion 2015-19 for
for empty train 100kmph and
high speed trains
for loaded train 75kmph
Aim 30 million daily passengerTo Increase speed of fast trains
carrying capacity in next 5 yrs
like Rajdhani, Shatabadi
To have 26 coaches in place of 24 in
select trains
Infrastructure
Tourism
10 satellite terminals to be taken up

FY16
Coal, steel, cement need new lines for
transportation
Centrally-managed display to be set up
in 2,000 stations
Establishment of automated water
vending machine
Wi-Fi in all A1, B category stations 200
more stations to be upgraded to model
stations and Bio toilets and airplanetype vacuum toilets in trains
Incredible Rail for Incredible India

to be launched; Promotion of
training of auto-rickshaw and taxioperators as tourist-guides on the
model of Konkan Railway
IRCTC will work on Kisan Yatra,
a special travel scheme for farmers
for farming & marketing technique
centers
Budget Estimates for 2015-16
The intention is to capture increased revenues and ensure

appropriate investments so as to de-congest the system and
enhance line-capacity.
Passenger earnings growth pegged at 16.7% and target budgeted
at Rs. 50,175 crore.
Freight traffic is pegged at an all time high incremental traffic of
85 million tonnes, anticipating a healthier growth in the core
sector of economy; Goods earnings proposed at Rs. 1,21,423
crore which includes rationalisation of rates, commodity
classification and distance slabs.
Other coaching and sundries are projected at Rs. 4,612 crore
and Rs. 7,318 crore. Gross Traffic Receipts estimated at Rs
1,83,578 crore , a growth of 15.3%.
Ordinary Working Expenses proposed to grow at 9.6% over

RE 2014-15. Traction fuel bill anticipated to shrink further.
Higher provisions made for safety maintenance and
cleanliness. Lease charges, interest component of the current
and previous market borrowings, at a growth of 21%.
Appropriation to Pension Fund proposed at Rs 35,260 crore
and appropriation to DRF at Rs 8,100 crore. Appropriation of
Rs 7,616 crore proposed to be made to Capital Fund for
payment of principal component of lease charges to IRFC.
Plan Outlay 2015-16

Gross Budgetary Support of Rs 40,000 crore for
the Railways annual Plan. Rs 1,645.60 crore
has also been provided as Railways share of
diesel cess from the Central Road Fund.
Market borrowing under EBR projected at Rs
17,655 crore, an increase of about 46.5%.
Balance Plan outlay includes Rs 17,793 crore
from Internal Resources and Rs. 5781 crore
from PPP.
HOW WE CAN ACHIEVE WITH OUT INCREASE

IN PASSENGER FARE?
To partner with PSUs to build capacity for freight
movement
Investment in railways to create more jobs
Cycle of poor investment in railways must end
States can raise finance through SPVs
Railway investment to need multiple sources of
funding
To partner with multilateral agencies for accessing
funds
To monetize assets rather than sell them
To tap insurance, PFs, global agencies for longterm funds

To set up financing cell in Rail Board
Funding for projects may be equity driven
Can generate resources via market borrowing
Aim to make Railways financially self-sustainable
Minister of State for Railways Manoj Sinha said there
will be no increase in the prices of urea for farmers since
the government will be subsidizing the commodity.
Finally, to make Bhartiya Rail financially self-sustainable.

This will mean generating large surpluses from our operations not only to service
the debt needed to fund our capacity expansion, but also to invest on an on-going
basis to replace our depreciating assets. This will require material improvement in
operating efficiency, tighter control over costs, greater discipline over project
selection and execution, and a significant boost to Railways' revenue generating

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Railway Bu dget

PASSENGER AMENITIES/ SERVICES

Railways will install machines which would

In non-AC coaches dustbins will be provided.

Measures for improving Safety

Power sector hit by rail

Speed on nine railway corridors Fast-track sanctioned works on

10 satellite terminals to be taken up

Incredible Rail for Incredible India

Budget Estimates for 2015-16

The intention is to capture increased revenues and ensure

Ordinary Working Expenses proposed to grow at 9.6% over

Plan Outlay 2015-16

HOW WE CAN ACHIEVE WITH OUT INCREASE

To tap insurance, PFs, global agencies for longterm funds

Finally, to make Bhartiya Rail financially self-sustainable.

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