The first Railway Budget of NDA Government, presented by Railway Minister D V Sadananda Gowda, focussed on prudent spending and devoid of populist announcements. Increased passenger amenities, more safety measures, timely completion of projects and increased financial discipline are the main highlights of the Railway Budget 2014-15.
The Budget seeks course correction in the light of mismanagement, apathy, populism in starting projects and severe fund crunch that have inflicted the railways over the years, Gowda averred. For this, structural reforms will be introduced and resources will be mobilised through PSU surplus, FDI and PPP.
Funds to the tune of about Rs 5 lakh crore, ie around Rs 50,000 crore per year for next 10 years, are required for ongoing projects alone. This leaves a huge gap between what is available as surplus and what is needed.
In the last 10 years, 99 new line projects worth Rs 60,000 crore were sanctioned out of which only one project is complete till date. In fact, there are 4 projects that are as old as 30 years, but are still not complete for one reason or another. “The more projects we add, the thinner we spread our resources and longer it takes to complete them. If this trend is allowed to continue, many more thousands of crore will get spent yielding hardly any returns,” said the Minister.
Railways also plans to set up project management group at the level of Railway Board to overcome delays in project execution. Gowda said similarly to expedite the projects at the ground level, a project monitoring and coordination group consisting of officials of state government, Railways and professionals will also be set up.
In addition, the Budget proposes multi-pronged approach to make Railway journey safe and secure and comfortable for passengers. More thrust has been placed on passenger amenities, cleanliness and efficient station management. Now all major stations will have foot-over bridges, escalators, lifts etc.
On safety and security, the Budget has proposed introduction of advance technology for rail-flaw detection to check causes of accidents, a significant amount has been kept for road-over and road-under bridges and a pilot project will be launched on automatic door closing in mainline and sub-urban coaches. In order to make women safer while travelling, the Railway will recruit 4000 women constables. Coaches for ladies will be escorted.
In order to make Railway management more efficient, Budget has proposed setting up of Railway University for training in both technical and non-technical subjects besides establishing Innovations and Incubation Centre to harness the ideas generated from staff.
In a bid to modernise Indian Railway network, Bullet train has been proposed on Mumbai-Ahmadabad sector besides increasing speed of trains to 160-200 kmph in select 9 sectors. The Railway has also planned setting up of Diamond Quadrilateral Network of High Speed Rail connecting major metros and growth centers of the country. Identified stations will be developed to international standards with modern facilities on lines of newly developed airports through PPP mode. Railway has also proposed harnessing solar energy by utilising roof top spaces of stations, railway buildings and land.
To augment resources of Railways, the Budget has proposed schemes to facilitate procurement of parcel vans and rakes by private parties, special milk tanker trains, increased movement of fruits and vegetables in partnership with Warehousing Corporation and setting up private freight terminals on PPP model.
The Railway has proposed to bring in more transparency in administration and execution of projects. The status of ongoing projects will be available online, E-procurement will be made compulsory for procurement of higher amount and online registration of demands for wagons will be introduced within next two months.
The Railway Budget 2014-15 has proposed 58 new trains besides extending 11 existing trains. Provision has been made for 28 surveys for new lines and doubling or gauge conversion of lines. Higher funds have been proposed for ongoing projects in Northeast and remote areas. Special packaged trains on identified pilgrim circuits, two tourist trains and a special train featuring life and work of Swami Vivekananda has been proposed in the Budget.
According to the Budget estimates, the Railways will earn Rs 1,64,374 crore through various resources and will spend Rs 1,49,176 crore during 2014-15. The operating ratio is expected to be 92.5% which is 1% better than that in 2013-14.
Rail Budget highlights:
The Budget seeks course correction in the light of mismanagement, apathy, populism in starting projects and severe fund crunch that have inflicted the railways over the years, Gowda averred. For this, structural reforms will be introduced and resources will be mobilised through PSU surplus, FDI and PPP.
Funds to the tune of about Rs 5 lakh crore, ie around Rs 50,000 crore per year for next 10 years, are required for ongoing projects alone. This leaves a huge gap between what is available as surplus and what is needed.
In the last 10 years, 99 new line projects worth Rs 60,000 crore were sanctioned out of which only one project is complete till date. In fact, there are 4 projects that are as old as 30 years, but are still not complete for one reason or another. “The more projects we add, the thinner we spread our resources and longer it takes to complete them. If this trend is allowed to continue, many more thousands of crore will get spent yielding hardly any returns,” said the Minister.
Railways also plans to set up project management group at the level of Railway Board to overcome delays in project execution. Gowda said similarly to expedite the projects at the ground level, a project monitoring and coordination group consisting of officials of state government, Railways and professionals will also be set up.
More From This Section
In addition, the Budget proposes multi-pronged approach to make Railway journey safe and secure and comfortable for passengers. More thrust has been placed on passenger amenities, cleanliness and efficient station management. Now all major stations will have foot-over bridges, escalators, lifts etc.
On safety and security, the Budget has proposed introduction of advance technology for rail-flaw detection to check causes of accidents, a significant amount has been kept for road-over and road-under bridges and a pilot project will be launched on automatic door closing in mainline and sub-urban coaches. In order to make women safer while travelling, the Railway will recruit 4000 women constables. Coaches for ladies will be escorted.
In order to make Railway management more efficient, Budget has proposed setting up of Railway University for training in both technical and non-technical subjects besides establishing Innovations and Incubation Centre to harness the ideas generated from staff.
In a bid to modernise Indian Railway network, Bullet train has been proposed on Mumbai-Ahmadabad sector besides increasing speed of trains to 160-200 kmph in select 9 sectors. The Railway has also planned setting up of Diamond Quadrilateral Network of High Speed Rail connecting major metros and growth centers of the country. Identified stations will be developed to international standards with modern facilities on lines of newly developed airports through PPP mode. Railway has also proposed harnessing solar energy by utilising roof top spaces of stations, railway buildings and land.
To augment resources of Railways, the Budget has proposed schemes to facilitate procurement of parcel vans and rakes by private parties, special milk tanker trains, increased movement of fruits and vegetables in partnership with Warehousing Corporation and setting up private freight terminals on PPP model.
The Railway has proposed to bring in more transparency in administration and execution of projects. The status of ongoing projects will be available online, E-procurement will be made compulsory for procurement of higher amount and online registration of demands for wagons will be introduced within next two months.
The Railway Budget 2014-15 has proposed 58 new trains besides extending 11 existing trains. Provision has been made for 28 surveys for new lines and doubling or gauge conversion of lines. Higher funds have been proposed for ongoing projects in Northeast and remote areas. Special packaged trains on identified pilgrim circuits, two tourist trains and a special train featuring life and work of Swami Vivekananda has been proposed in the Budget.
According to the Budget estimates, the Railways will earn Rs 1,64,374 crore through various resources and will spend Rs 1,49,176 crore during 2014-15. The operating ratio is expected to be 92.5% which is 1% better than that in 2013-14.
Rail Budget highlights:
- No increase in rail fare
- Stress on resource mobilisation through PSU Surplus, FDI and PPP
- Bullet Train on Ahmedabad-Mumbai corridor proposed, speed of trains to be increased in nine sectors
- More thrust on passenger amenities, cleanliness & efficient station management
- Multi-pronged approach for improving safety & security, 4000 women RPF constables to be recruited
- Revamping Railway Reservation System into next generation e-ticketing, WI-FI services in major stations & in select trains, mobile based wakeup calls for passengers
- 58 new trains introduced; 11 existing trains extended
- Railway university and innovation incubation centre to be set UP
- Top priority to transparency, e-procurement to be made
- Compulsory in higher purchase, online registration for wagons in next two months
- Highest ever plan outlay of Rs. 65,445 crore with higher allocation for safety measures