Rail Budget: Focus on Passenger Comfort, Fare & Freight Hike Later

It has derailed. There is nothing in the Rail budget.

Prabhu spoke of creating three new freight corridors – two originating from Kharagpur in Bengal – and announced three new superfast trains. It would help passengers source information regarding running status of trains and would help them in booking cabs.

“This Budget clearly reflects the corporate vision of BJP-led NDA government as for rich class bullet trains and three new AC trains have been introduced – Uday, Hamsafar and Tejas while only one train announced for the common people that is an unreserved Antyoday express”, Baghel added.

No Railways Minister in recent times has been so generous in lowering fares as the legacy losses and cross-subsidisation-it is now Rs 30,000 crore-continues. These are expected to be financed through Gross Budgetary Support from the Centre which is estimated at Rs 40,000 crore. Amongst key misses, last year’s announcement about a five year investment plan of Rs. 9 lakh crore didn’t find any mention. In the coming year, the operating ratio has been targeted at 92%.

The broader NSE index was 0.23 percent lower at 7,002.85 by 0821 GMT, while the benchmark BSE index was down 0.27 percent to 23,026.

Prabhu also said that this year, a Track Management System (TMS) application was launched.

“We are exploring the possibility of monetising our data, software and some of the free services provided by IR such as PNR enquiry, now being commercially exploited by other players but at the same time ensuring that no compromise to customer privacy is made”, Prabhu said. In the short term, we have partnered with some of the best railways to develop indigenous capability in these areas. “We will make sure we recapture the traffic”, he added.

Mission PACE (Procurement and Consumption Efficiency): This mission aims to improve our procurement & consumption practices to improve the quality of goods and services.

Mr Yadav said there was no concern for the “safety” aspect in the Budget. Bar-coded tickets will be introduced and there will be closed-circuit television surveillance at 300 stations from next year. Before the current financial year ends on March 31, nearly all contracts for civil engineering work would have been awarded.

Every rupee in investment in railways has the capacity to increase economy wide output of Rs 5. The pension cost alone will touch Rs 45,500 crore in FY17.

Prabhu’s financial engineering to project a rosy picture of Railways financial health will be little understood until the next Budget.