proposed no increase in passenger fares or across-the-board freight rates but rationalised freight tariff that will bring down diesel and petrol transportation by 8%.
In a budget that comes ahead of assembly elections in five states, he also announced the introduction of fully air conditioned Garib Rath on a pilot basis in which fares will be about 25% lower than present AC-III tier fares.
In an apparent bid to bring back passengers from low fare air travel, Prasad rationalised the passenger tariff structure by proposing a reduction in AC first class fare by 18% and AC-II fares by 10%.
The minister's generosity covered extension of 50% concession in second class fares to sleeper class for farmers and milk producers for travel to institutes of national level for training.
Similarly, persons who have lost their limbs in accidents or otherwise will get 50% concession in second class and sleeper class for travel to national level institutes for transplantation along with one attendant.
Prasad announced the introduction of 150-km speed train, recently started between Delhi and Agra, on the Delhi-Kanpur-Lucknow route.
The budget contained proposals for 55 pairs of new trains, extension of services for 37 trains and increasing frequency of 12 trains.
The construction of a dedicated freight corridor at a cost of Rs 22,000 crore on the estern and eastern routes was also announced.
In an attempt to fight competition from road, Prasad announced that rationalisation of goods traffic will continue further by reducing the number of commodity groups from 80 to 28. The lowering of the highest class to 220 will result in freight rates of diesel and petrol falling by 8%.
Projecting healthy finances, Prasad claimed that the likely year-end fund balance will be Rs 11,280 crore.
The annual plan for railways for 2006-07 has been fixed at Rs 23,475 crore of which Rs 7,500 crore will come from the general exchequer and Rs 10,794 crore from internally-generated resources and Rs 5,170 crore through extra-budgetary resources.
The budget estimates for 2006-07 pegs freight loading target at 726 million tonne and freight output at 479 billion tonne kms. Freight revenues have been estimated at Rs 40,320 crores, passenger (Rs 16,800 crore), coaching (Rs 1,400 crore) and sundry other earnings (Rs 1,308 crore).
Gross traffic receipts for the coming year have been placed at Rs 57,978 crore and ordinary working expenses at Rs 38,300 crore. Appropriation to pension fund has been placed at Rs 7,790 crore and depreciation reserve fund at Rs 4,307 crore. Internal generation before dividend is expected to be Rs 14,293 crore.
