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Highlights of the Railway Budget 2007-08

Last updated on: February 26, 2007 16:51 IST

Railway Minister Lalu Prasad presented the Railway Budget 2007-08 in the Lok Sabha on Monday.

Following are the highlights of the Railway Budget:

2006-07: Review of Performance and Revised Estimates

  • Record breaking performance in the first nine months of the year 2006-07
  • Freight earnings register growth of 17%. Incremental loading of 59 MT likely to be achieved
  • Growth in Passenger Earnings, Other Coaching Earnings and Sundry Earnings 14%, 48% and 11% respectively
  • Gross Traffic Earnings register an unprecedented growth of 17%
  • In Revised Estimates Passenger Earnings, Other Coaching Earnings, Freight Earnings and Sundry Earnings expected to be Rs 17,400 cr, Rs 1,726 cr and Rs 42,299 cr, Rs. 1,695 cr respectively
  • Gross Traffic Revenues projected at Rs 63,120 cr are 16% higher than the previous year and 5.5% higher than the Budget Estimates
  • Cash Surplus before dividend expected to be Rs 20,000 cr
  • Net Revenue expected at Rs 14,870 cr and Net surplus after payment of dividend expected at Rs 10,627 cr
  • Operating Ratio likely to be 78.7% - best ever for IR and one of the best in world Railways
  • Year end fund balances likely to increase from Rs 12,000 cr in 2005-06 to Rs 16,000 cr
  • Return on capital set to reach historic level of 20%
  • In spite of reduction in Passenger fares, the losses in passenger business expected to come down

2007-08: Initiatives taken for improvement in Freight Business

  • Target for freight loading kept at 785 Million Tonnes (MT) in 2007-08
  • Mission 200 MT - Railways' target higher share in transportation of Cement and Steel - 200 MT each by 2011-12
  • Mission 100 MT - container traffic target of 100 MT by 2011-12
  • Planning for Triple-stack container trains on diesel route and double-stack container trains on electrified route
  • Railways offer to run Merry-go-round systems of power plants
  • Upgradation of Freight terminals handling more than 15 rakes per month.
  • 22.9 tonnes and 25 tonnes axle-load freight trains to run on more routes
  • Production of wagons of higher axle-load and payload to commence
  • Wagon manufacturers to be encouraged to design wagons with higher payload and new technology
  • Majority of air-brake trains to be examined in accordance with premium CC or premium end-to-end examination system
  • Implementation of Unit Exchange Maintenance for rolling stock to improve productivity
  • Zonal Railway to engage independent marketing agencies for exploring further possibilities in freight business

Initiatives in passenger business:

  • 800 more coaches to be attached in popular trains
  • Plan to provide cushioned seats in unreserved second class coaches
  • Increase in unreserved second class coaches from four to six in every new train – Efforts will be made to increase unreserved second class coaches in existing trains also.
  • Facility for reservation of lower berths for senior citizens and women above 45 years traveling alone
  • Increase in provision of special coaches (SLRD & SRD) for Physically challenged passengers
  • Vendor coaches for sections frequented by milk and vegetable vendors and other retail sellers
  • More convenient, comfortable and high capacity new design passenger coaches will be manufactured
  • Concession of 50% in second class for candidates appearing for main written examination conducted by SSC and UPSC

Facilitating travel by passengers

  • Countrywide Train Enquiry call centres – Common Tel. No. 139
  • Pilot project for providing hand held terminals to TTEs in reserved coaches to update PRS with onboard vacancies for giving reservation to passengers at ensuing stations without delay
  • Expansion of reserved ticketing facilities
  • PRS counters to be opened at premises of Post-offices and Defence organizations to be operated by them
  • e-ticketing services through State Government's e-services, Petrol pumps, Bank's ATMs etc.
  • Expansion of Unreserved Ticketing facilities
  •  UTS counters to be increased to 8000 in the next 2 years
  • 6000 Automatic Ticket Vending Machines to be installed and linked to UTS in metropolitan cities in the next 2 years
  • Coupon system for ticket distribution to be extended to Kolkata and Chennai
  • Pilot project on Central Railway for issuing suburban tickets through multi-purpose smart cards

Passenger Amenities at Stations

  • 300 more stations to be developed as modern stations.
  • Year 2007 declared 'Cleanliness Year' - Special campaign to ensure cleanliness in station complexes, passenger trains, railway lines, waiting rooms etc.

11th five-year plan – Railways' new profile

  • Target of 1,100 MT freight loading and 840 crore passengers in the terminal year of 11th Plan.
  • Focus would be on doubling transport capacity and reducing unit cost of transportation by increasing volumes.
    • Short-term strategy- investing in low cost high return projects for eliminating bottlenecks and ensuring intensive asset utilization
    • Mid and long-term strategy – twin pronged approach of network expansion and modernization and technical upgradation
    • Public-private partnerships projects will play an important role.
  • Construction of Eastern and Western Dedicated Freight Ccorridors at a cost of Rs 30,000 cr will commence from 2007-08 for completion during the 11th plan.
  • Pre-feasibility surveys for East-West, East-South, North-South and South-South Corridors
  • Most of the metre-gauge lines will be converted into broad-gauge by the end of this five-year plan.
  • High speed Passenger Corridors to be constructed to run trains at more than 300 km/hr speed.
  • Expansion of suburban services through completion of MUTP Phase-1 and initiating MUTP Phase-2 through joint funding
  • Efforts to provide air-conditioned suburban trains in Chennai, Kolkata and Mumbai and escalators at important stations
  • The production of rolling stock will be doubled compared with previous plan. Production of high-horse power and energy efficient locos to be increased.
  • Manifold increase in investment in IT to increase earnings, ensure effective utilization of human and physical resources and facilitate long-term policy decisions
  • Commercial portal to be developed over next 3 years for better yield management
  • Integrated time bound implementation of all FOIS modules by 2010.
  • ERP package for workshops, production units and select Zonal Railways

Railway Safety

  • Number of rail accidents has decreased despite substantial increase in volume of traffic
  • Majority of Special Railway Safety Fund works will be completed by March, 2007. Balance to be completed by March, 2008.
  • Testing of Anti-Collision Device in last stages
  • General Managers empowered to sanction subways costing up to Rs 50 lakhs on unmanned level crossings for reducing accidents.
  • Production of improved crashworthy coaches will be increased.

Railway Security

  • Number of trained dogs will be increased in the existing dog squads.
  • Door frame and hand held metal detectors to detect explosives being installed in many sensitive divisions and CCTV, smart video cameras etc for sensitive stations
  • 8,000 vacancies will be filled in the RPF on all India basis.
  • Jagjivan Ram Railway Suraksha Bal Academy (Lucknow) has been recognised as Centralized Training Institute.

Staff Welfare

list .5in">Per-capita contribution to Staff Benefit Fund will be increased from Rs 30 to Rs 35 per year.
  • list .5in">Condition of Railway Staff colonies to be improved
  • list .5in">50 room rest houses will be built near the Railway hospitals in the four metropolitan cities for stay of relatives of the patients.
  • list .5in">An extensive training programme will be launched to inculcate market and customer oriented approach in frontline staff.
  • list .5in">A committee has been constituted to improve promotion prospects of Group 'D' employees.
  • list .5in">Previous service tenure of ex-servicemen and central government employees recruited by Railways, will be added to their existing service tenure in the Railways while calculating eligibility for post retirement complimentary passes
  • Organisational and Human Resource Development

    Special Recruitment Drives

    Passenger Services

    Annual Plan 2007-08

    list .5in">Ø Support of Rs 7,611 cr from General Revenues.

    list .5in">Ø Internal Generation of Rs 17,323 cr.

    list .5in">Ø Extra Budgetary Resources of Rs 5,740 cr.

    v      High Density Network to be made suitable for running of Heavy Axle load trains

    v      Enhanced

    line capacity planned for on busy routes by implementing IBS, Automatic Signaling etc.

    v      Increase in speed of trains through fly-overs,

    bypass, yard redesign etc. at busy junction stations, will be built and will be modified

    v      200 Diesel, 200 Electric engines and 11,000 wagons to be produced

    Other Important Announcements

    Railways emerging International image

    Proposals relating to freight rates and passenger fares

    Freight Business

    Schemes Announced/ Modified

    Passenger Business

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