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Highlights of Narendra Modi government's first #RailBudget

Tuesday, 8 July 2014 - 2:40pm IST | Agency: dna webdesk

Even as the Railway Minister Sadananda Gowda prepares to present his maiden budget in the Parliament, on Tuesday, stakeholders debate the outcomes and impact the new budget could have on the common man. UPA had estimated an investment of Rs. 64,305 crore under Annual Plan 2014-15 in their interim budget. They had also estimated a loss of Rs 30,000 crore for the year. Will the Modi government be able to give us better numbers?

 

Live Update

 

14:23 IST Tuesday, 8 July 2014

Prime Minister Narendra Modi has come out in praise for the rail Budget presented by Gowda. He tweeted the Rail Budget showcased the role of the railways in the development of India. the Budget, for him focuses on transparence, technology and innovation. Therefore it strengthens institutional mechanism. he said, the railways cannot be run in an ad-hoc manner, nor can it be seen in bits and pieces. This for him, was the first holistic Budget of Indian Railways in modern India.  

13:22 IST Tuesday, 8 July 201

Gowda finishes reading out his Budget amidst uproar from the opposition members. Sensex at 25196 down 124 points while Nifty is down 50 points at 7737. Railway stocks are all in Red with Texmaco Rail being the biggest loser down 11%. Other stocks like Titagarh Wagons, Kernex Micro, Stone India are all down around 5%.

Gowda speaks of overhauling the system but does not set timeline or constructive plan for most issues.

Congress has come out with the first reaction: says is not happy with various measures. But it would welcome the government's attempts to bring in more foreign direct investment.

13:16 IST Tuesday, 8 July 2014

5 Jansadharan, 5 Premium & 6 AC, 27 Express Trains, 8 Passenger, 5 DEMU & 2 MEMU services; 11 train extensions.

New train services are limited for resource constraints. Govt to stick to promises made in interim Budget. 

Committee has been set up in twin states of Andhra Pradesh and Telengana to work out train details

Bangalore to be connected better with suburban areas

Railway stoppages to be renewed after September 2014

High speed trains on Kanpur-Nagpur, Mysore-Bangalore-Chennai.

Automatic rebate on return tickets

Monitoring of Eastern & Western Dedicated Freight Corridor Projects; Target of nearly 1000 kms of construction contracts.

13:04 IST Tuesday, 8 July 2014

Identify special stations to inetrnational standards through PPP mode

Railways to link major ports through PPP
Recruit 4000 RPF women to ensure safety of women
Set up project formulation and monitoring group to expediate current projects
E-procurement to be compulsory for any procurement about Rs 25 lakhs
Allocate North East projects  to get Rs 5116 crore allocation which is 54% higher than previous year.
 
13:00 IST Tuesday, 8 July 2014

Railways to go paperless in 5 years.

Mobile alerts for wake up calls, arrival alerts
Digital reservation charts at station
Provide education to children of railway staff in remote locations
An Innovation Centre to take ideas from railway staff and try to turn them into reality
Summer internships for engineering and management students with railways
 
 
12:52 IST Tuesday, 8 July 2014

Increase per capita railways staff welfare fund from Rs 500 to Rs 800.

Tie up with technical institutions to begin training on railways relate technical and nontechnical subjects

Short term Trainings to be carried out in the meantime on spcl issues like high speed trains in India and abroad

Bullet trains to begin shortly, diamond quadrangle network for high speed project. Budget outlay of Rs 1000 crore. 

 12:50 IST Tuesday, 8 July 2014

No unmanned level crossings, 5400 unmanned crossings to be removed.
To tap potential tourism opportunities in the North East. Special package trains for religious pilgrimage circuits.
Reservation systems to be overhauled through e-ticketing systems to support 7200 tickets per minute as against 2000 tickets per minute now.
Automated ticket machines will be tried out. 
 
12:46 IST Tuesday, 8 July 2014

He expects total receipts of Rs 164370 crore. He proposes to increases plan outlay to Rs 47,300 crore, higher than UPA outlay by almost Rs 9000 crore. He wants to scale down market borrowing to Rs 11790 crore.

The focus areas:

Sufficient water supply and toilets, escalators and lifts, battery operated cars at all stations. 

Online booking facilities of railway retiring rooms.

Expand the scope of online booking.

Catering a major issue of concern. Also introduce ready to eat meals at trains of reputed brands. Also a system of third party audit.

Severe actions against contractors including cacellations of contracts in case of major complaints with hygiene.

Food court at all stations. Pilot project to begin soon.

Attach high priority on cleanliness but always a challenge. Increase Budget allocation of 40% over last year's Budget. CCTV cameras and all India help lines to be introduced to maintain cleanliness.

Introduce RO drinking water at trains and stations (with help of corporate and NGOs)

 

12:35 IST Tuesday, 8 July 2014
The Railways Minister says he will not announce too many new projects, but first set the current situations in order. Earlier projects were neither socially nor commercially viable. "Can I depend just on hiking fare? This is not realistic", says Gowda.  He speaks of bringing in private investment (both domestic and FDI) for railway infrastructure. He supports public-private partnership for raising resources. Bulk of projects will have to be funded by PPP mode. He speaks of major implementations strategies: Fix timelines, match international practices etc

 

12:25 IST Tuesday, 8 July 2014

The operating ratio is 94paisa, which means 94 p put of every Re 1 is utilised. So the surplus is just 6%. He says it is difficult to connect all of hinterland. He condemns the UPA government for keeping passenger fares low. Freight rates were however kept high to compensate for passenger fares. He then turns to misdirection of investments. Projects were sanctioned but not completed. 359 projects that need Rs 1.82 lakh crore remain to be completed.
 

12:19 IST Tuesday, 8 July 2014

Gowda begins to read the Railway Budget for 2014-15. He says railways is the structure and soul of the Indian economy. He quotes Kautilya, "In the happiness of the people lies the ruler's happiness, in their welfare lies the ruler's welfare." Indian railways runs 12,5000 trains. He targets to become largest freight carrier in the world. He said he will start work on high speed network.

11:59 IST Tuesday, 8 July 2014

Dinesh Trivedi, former railway minister told NDTV in an interview that the need of the hour would be to de-politicise the Indian railways. The government should work towards all party consensus to make the railways profitable. He said instead of a one-year Budget, long term national policy on the railways is also desirable. He says the government who is deciding on the price rise today, protested against the UPA government when it was hiking prices a year back. So the parties need to have the same standard in power and in opposition and decide what is good for the people.

Trivedi had to resign in 2012 after he hiked prices, apparently without the consensus of his own party Trinamool Congress, led by Mamata Banerjee.

11:36 IST Tuesday, 8 July 2014

The Railway Budget 2014-15 is expected to be growth oriented and unveil strategies to mobilise alternative sources of funding to modernise and upgrade the crucial logistics sector.

11:31 IST Tuesday, 8 July 2014

Gowda with the Budget suitcase at the door of the Parliament.

11:14 IST Tuesday, 8 July 2014

Gowda arrives in Lok Sabha but does not speak to reporters. In an interview to DD News Gowda told, that he hoped to bring smiles back to people's faces within a few months. He said the media has debated and discussed the problems with the Indian Railways, even like cleanliess, safety etc that I have tried to incorporate in the Budget. He said the government should try and bring railways out of politics as it cannot be a state subject. Though changes are not possible to bring about in very short span, some measures can bring fruit even in short span. 
 
11:05 IST Tuesday, 8 July 2014

Gowda, on the other hand, is likely to adopt a realistic approach in announcing new trains, lines and survey in view of the cash crunch of Rs 26,000 crore. While many unviable projects may be scrapped, he will also announce some new projects on priority basis in the Rail Budget 2014-15.

UPA had estimated an investment of Rs. 64,305 crore under Annual Plan 2014-15 in their interim budget. They had also estimated a loss of Rs 30,000 crore for the year. will the Modi government be able to give us better numbers?

Earlier this morning, Gowda tweeted, hoping to meet people's expectations:

On day one of the Budget session, on Monday, Finance Minister Arun Jaitley had blamed the 14.2% rail fare hike on the previous Congress government, "The Railways has been left in tatters by the UPA government. It is not possible to fill gaps which the Congress left, in just five weeks," he accused. "Suggestions of fare rise in railways came to the government due to losses incurred in February." However, he also defended the fare hike by saying, "If you want to use a service, you need to pay for it."

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