 "Rail Budget 2016: 10 key takeaways from Suresh Prabhu's speech")
Rail Minister Suresh Prabhu highlighted the need to overhaul work culture and ethos to take on the challenges faced due to global slowdown and the Seventh Pay Commission.
The ministry decided not to raise passenger or freight fares, stating that alternative revenue modes will be exploited.
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Read full text of Railway Budget speechThe ministry decided not to raise passenger or freight fares, stating that alternative revenue modes will be exploited.
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“This is a Budget fashioned by a creative partnership,” he said, while presenting his second Railway Budget in the Parliament on Thursday.
Business Standard takes a look at key announcements from the the minister's speech.
Economic Health
The Railways set an ambitious operating ratio target of 92% in 2016-17 against 90% in 2015-16 due to higher-than-expected earnings.
Meanwhile, it expects revenue of Rs 1,84,820 crore in the next year, 1.1% higher than revised a target of FY16. Rs 40,000 crore is expected as budgetary support from the government, Prabhu said.
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New Train Categories
The minister announced introduction of three new categories of trains. They are listed below:
1. Tejas: Trains with operating speed of 130 kmph, which will have world-class on-board services
2. Hamsafar: Fully air-conditioned third AC service with an optional service for meals
3. UDAY: Utkrisht Double-Decker Air-Conditioned train with increased carrying capacity of 40%
Key Decisions
WiFi services will be commissioned at 100 stations in this year, and shall be increased to 400 stations in the next two years, Prabhu announced.
The minister announced increasing lower berth quota for senior citizens in rail coaches which will be raised by 50% in 2016-17
Forty four new projects have been sanctioned, covering 5,300 kms and costing Rs 19,000 crore, he said.
Food Services
Children’s menu will now be separately available in trains.
To cater to mothers and their babies, baby food, hot milk and hot water will be made available, Prabhu announced.
In-house entertainment
The Centre has proposed inviting FM Radio Stations for providing train-borne entertainment by installing public announcement (PA) systems in trains
Mumbai Focus
The minister announced elevated corridors between Churchgate and Virar and CST and Panvel.
We are also looking to staggered timings in government offices to reduce peak load, he added.
Action Plan
The minister said that it was focusing on improving rail infrastructure and that Rs 8.5 lakh crore would be spent over five years for modernisation of railway infrastructure.
LIC has also agreed to fund 1.5 lakh crore in the next five years, he added.
Efficiencies
The railways is targeting to increase punctuality to 95% and thereby increase average speeds of trains across categories, Prabhu said.
Make in India
The minister announced setting up of two new loco factories under Make-In-India plan with an order book of Rs 40,000 crore .
Connectivity
New Delhi to Chennai, East and West Coast connectivity projects will be put on fast track, Prabhu said in the Parliament today.
A decision has also been taken to set up a Rail Auto Hub, the first-of-its-kind in Chennai, he added.