Date:27/02/2005 URL: http://www.thehindubusinessline.com/2005/02/27/stories/2005022701440600.htm

Back Highlights of Railway Budget 2005-06

The following are the highlights of the Railway Budget 2005-06 presented by the Railway Minister, Mr Lalu Prasad, in the Lok Sabha on Saturday:

Introduction

Railways to initiate a gamut of commercial, operational and investment oriented initiatives in the freight sector to improve its share in the transport sector. Also to streamline passenger services to bring about palpable improvement.

Review of performance in 2004-05

7.67 per cent growth in loading in the first nine months, revised target for freight loading raised from 580 mt to 600 mt, i.e., an incremental loading of 43 mt over previous year. Freight earnings target increased from Rs 28,745 crore to Rs 30,450 crore.

Target of 396 billion tonne km for Tenth Plan end year to be surpassed in 2004-05 itself.

Growth in originating passenger traffic around 6 per cent compared to budget target of 3 per cent.

Growth of 8.3 per cent in total earnings to end December 2004 as compared to 4.1 per cent growth registered in previous financial year; total earnings in the Revised Estimates fixed at Rs 46,635 crore, i.e., Rs. 1,838 crore higher than Budget Estimates.

Ordinary working expenses to increase by Rs 400 crore mainly due to increase in fuel prices.

Operating ratio to improve to 91.2 per cent against the budgeted 92.6 per cent.

Fund balances expected to close with a healthy figure of Rs 6,963 crore.

Budget 2005-06

Freight business initiatives

Plans to improve throughput through increased productivity and efficiency.

Wagon turn round to be brought down to 5 days in the near future from about 6 days in the current year.

Preferential traffic schedule for supply of wagons rationalised and simplified, higher priority within the same class to be accorded to customers adopting EOL scheme, wagon investment scheme, mechanised round-the-clock working etc.

Electrification of diesel sidings located on electrified sections at Railways' cost where justified by traffic.

Engine-on-load scheme further liberalised and made attractive; scheme also extended to selected goods sheds and for customers not having their own private sidings.

Terminal incentive scheme including cash incentives, aimed at reduction of detention at terminals, to be formulated in consultation with industry.

Facilities at freight train examination centres to be upgraded for qualitative improvement in examination and for providing longer intervals between successive examinations.

Rationalisation of rules relating to demurrage/wharfage and loading/unloading time.

Incentives to customers adopting mechanized loading and round the clock working.

Electronic payment gateway facility implemented for BTPS; to be extended to major customers.

Public-private partnership

Freight customers to be encouraged to develop their private sidings through cost sharing.

Scheme for development of integrated warehouse complexes to provide single window service to customers.

Organisations other than CONCOR also being considered for running container trains, to meet the growing demand.

Introduction of double stack container trains on one of the identified routes connecting North India with Gujarat ports being considered.

Rail Land Development Authority (RLDA) to develop surplus Railway land for generating additional resources being set up.

RailTel to exploit its upgraded OFC network to increase its revenue earning capability by providing various broadband services.

Parcel business initiatives

Additional leasing of parcel space in certain nominated trains to attract more traffic.

Vacant compartment of guard in front of SLR coach also to be leased.

Short-term lease and lower lease price under consideration for trains, where SLR is poorly utilised.

Passenger business - Initiatives and amenities

Countrywide extension of universal enquiry number-139 at local call rates.

Introduction of booking of tickets through landline phones also. Internet booking timings extended and will be from 4 a.m. to 11.30 p.m. without a break.

Reservation status to be made available in advance; display of vacant berth position; renewal of season tickets on Internet for Mumbai suburban passengers.

PRS facility to be extended further; 45 of remaining district headquarters to be covered in 2005-06; balance to be covered in the year thereafter.

UTS to be further expanded by over 300 locations taking total number over 400.

IT steps oriented towards MIS

MIS through data warehouse developed from UTS, PRS and FOIS, implementation of control charting system on 15 divisions, unified computerised crew management system to be developed.

COIS time-table module under development; to be Web-enabled in coming year.

Computerisation of Railway Claims Tribunals, Goods Refund Offices for online registration and quick settlement of claims; claims management system to be Web-enabled.

Integrated rly modernisation plan

Five year IRMP at a cost of Rs 24,000 crore formulated.

Plan envisages running of 150 kmph passenger trains and, 100 kmph freight trains on the golden quadrilateral and its diagonals; introduction of higher axle load; double stack containers; light weight corrosion resistant aluminium wagons; modernisation of track, bridge, signalling and telecommunication, etc.

Accounting initiatives

Accounting reforms process initiated; modification in the accounting system so that true nature of lease transaction and their contribution to railway revenues reflected.

Rationalisation of capital structure of Indian Railways; establishment of a chair for studies in Railway finance at one of the IIMs; actuarial assessment of pension liability proposed.

Transparency in purchase & sale

Development of new vendors for healthy competition; procurement to be made more economical

Safety

Progressive reduction in number of consequential train accidents

Execution of works sanctioned under SRSF progressing satisfactorily.

Medical relief trains and trains carrying equipment for restoration upgraded for operation at 100 kmph.

Deployment of state of the art modern track recording car for better monitoring and maintenance of track.

First ACD worked section on IR designed to prevent collisions likely to be ready in Northeast Frontier Railway by March 2005.

Security

Recruitment drive for filling up vacancies in RPF and modernisation programme of RPF in full swing for improving security to passengers and their belongings.

Concessions

Full concession in second class extended to unemployed youth appearing for interviews of State Government jobs.

50 per cent concession in second class to farmers and milk producers for travel to national level institutes for training/learning better agricultural practices/dairy farming.

75 per cent concession in second class to rural school students in Government schools, once in a year, for study tour.

75 per cent concession in second class to girls from rural areas studying in Government schools for attending national level entrance examination for professional courses.

Transportation of relief material on priority and free of cost in notified cases, free second class transportation to stranded persons for their evacuation.

50 per cent concession in the normal tariff rates for carrying dead bodies of patients who die while undergoing treatment in major Government hospitals.

Recruitment

Recruitment for Group D posts by field units instead of RRBs.

Reservation

Special drive for ensuring appropriate representation of Scheduled Tribes and Other Backward Castes in Railway Services.

25 per cent reservation in licences of small catering units at `A', `B' and `C' category stations and 49.5 per cent reservation at other categories of stations for under privileged categories.

25 per cent reservation to under privileged categories in new bookstall policy.

Environment friendly steps

Provision for sale of dairy products under catering policy.

`Clean train station system' to be implemented on at least one station of each zonal railway in 2005-06; stainless steel EMU coaches for Mumbai Suburban area.

Development of composite sleepers from waste material.

Passenger services

New service in 2005-06

54 pairs of new train services to be introduced.

Run of 28 pairs of trains to be extended.

Increase in frequency of 10 pairs of trains.

Speeding up of 30 trains. Review of trains with low patronage

About 400 additional coaches to be deployed in well-patronized trains.

Surveys

In addition to 72 surveys announced in last Budget, 20 more surveys sanctioned this year. Of these 27 surveys completed, rest in progress. In 2005-06, 41 new surveys and updation of 17 surveys to be taken up.

New plants

Setting up of wheel manufacturing plant at Chapra included in Budget.

12 new concrete sleeper plants contemplated. Five at Dauram Madhepura, Chak Sikander, Sitamarhi, Palghat and Harihar to be set up on immediate need basis.

These 12 are in addition to three concrete sleeper plants sanctioned earlier, which includes Bitragunta.

Projects

Achievements of current year and targets for next year (See table)

Kumarghat-Agartala and Jiribam-Imphal Road (Tupul) new lines and Lumding-Silchar-Jiribam gauge conversion declared as national projects.

Annual Plan 2005-06

Plan outlay Rs 15,349 crore, consisting of Rs 7,230.81 crore from General Exchequer (including Rs 2,699 crore from SRSF and Rs 710.81 crore from Central Road Fund).

Rs 4,718.19 crore from internal resources and Rs 3,400 crore through market borrowings.

In addition, Railways allowed access to extra budgetary resources to the extent of Rs 3,000 crore for financially viable schemes on a projectised basis.

Thrust on throughput enhancement works, safety and development.

Additional funds to the tune of Rs 1,365 crore for national projects in J&K/NE region and Rs 358 crore for RVNL works to be released during the course of the year.

Appropriation to development fund raised significantly for making available adequate funds for throughput enhancement works including traffic facility works.

Budget Estimates 2005-06

Freight loading target 635 mt, originating passenger traffic to go up by 4 per cent .

Gross Traffic Receipts estimated at Rs 50,968 crore, Rs 4,183 crore higher than RE 2004-05.

Ordinary working expenses estimated at Rs 35,600 crore, appropriation to DRF kept at Rs 3,604 crore which is 60 per cent more than BE of 2004-05.

Net revenue estimated to be Rs 5,914 crore.

Operating ratio to improve to 90.8 per cent - lowest in the last 8 years.

Freight services

No across-the-board increase in freight rates.

Goods tariff made simple, rational and transparent - goods tariff to contain only 80 group of commodities instead of over 4,000 commodities at present. For all commodities, freight will be charged now based upon the carrying capacity of wagons,

Introduction of three new classes viz. 90-W1, 90-W2 and 90-W3 to avoid appreciable increase in freight for lighter commodities.

Total number of classes reduced from 27 to 19 with uniform interval of "Tens" between successive classes; highest class reduced from Class- 250 to Class-240. Freight for kerosene and LPG reduced.

Single uniform Class - 100 for entire group of chemical manures.

Classification for foodgrains and pulses revised to Class - 120. However, foodgrains for public distribution system and poverty alleviation programmes and for other relief works to be charged at Class - 100 to avoid increase in their freight rates. If carried in open wagons, will be charged at Class-90.

Iron ore to be charged at Class-160 instead of Class-140. However, transportation of programmed Iron-ore, with private sidings will continue to be charged at Class-140.

New premium registration scheme drawn up - those willing to pay freight at two classes higher than the prescribed class to be accorded higher preference in allotment of rakes within the same class of priority.

Two days in a week reserved for allotment of rakes strictly as per the date of registration.

"Wagon Investment Scheme" introduced - assuring guaranteed supply of wagons to customers investing in railway wagons. Scheme also envisages certain freight rebates and higher priority for such customers.