Tag: Railway Budget

Railway budget 2014-15

INFRASTRUCTURE,  MODERNISATION

* To up speed of some trains to 160-200 km/hour
* Diamond quadrilateral to have high-speed rail connectivity
* Need 9 trln rupees for Diamond Quadrilateral project
* Aim to up staff benefit fund to 800 rupees/capita vs 500 now
* Mull Railway University of tech, non-tech nature
* To start Interactive Voice Response for food quality feedback
* To offer air-conditioning in loco cabins
* Aim to enable buying of platform, unreserved tickets online
* E-ticketing system to accommodate 120,000 users at a time
* To up e-ticketing capacity to 7,200 ticket/minute vs 2,000 now
* Plan to take up eco, education tourism, in Northeast states
* To explore building boundary wall around tracks via PPP
* Facility for buying platform, unreserved tickets via Internet
* Aim to recruit 4,000 Railway Police Force constables
* Ladies coaches to be escorted by women rail police force
* Bio-toilets to be increased in trains
* Have 11,563 unmanned level crossings; aim to eliminate them
* To allot 17.8 bln rupee to eliminate unmanned level crossing
* Ultrasonic systems to be used to detect rail fractures
* Corpus funds for upkeep of stations mooted
* Coin-operated ticket vending machine to be experimented
* People can book seat, berth, coach via online booking
* To have RO drinking water units at stations, in trains
* To extend onboard housekeeping services to all major trains
* To use CCTV to monitor cleanliness at stations
* To outsource cleaning activities at 50 stations
* To set up a separate division for housekeeping
* To have food courts at major stations
* Propose to provide workstation for business passengers
* To introduce branded, pre-cooked ready-to-eat meals on train
* To involve individuals, corporates for passenger amenities
* Rail retirement room to be extended to all stations
* To have battery operated cars at major station platforms
* Plan to prioritise, set timeline for ongoing projects
* To focus on aggressive indigenisation of imported pdts
* Internal sources insufficient to meet expenses
* New projects will do injustice to struggling railways
* Automatic door closing technology in mainline, suburban train
* Examining all unmanned level crossings in detail
* 400 bln rupees needed for track renewals
* Indian Railways needs immediate course correction
* Unveiling new projects injustice to a struggling organisation
* Spent 184 bln rupees on doubling 5,050-km tracks in 10 years
* Four 30-year-old projects not yet completed
* Spent 410 bln rupees on 3,700-km new lines in 10 years
* More projects we have thinner we spread our resources

Railway Budget 2014 - 15

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NEW TRAINS

* Mumbai-Ahmedabad bullet train proposed
* Allocates 1 bln rupees for Diamond Quadilateral
* Special train to throw light on life of Swami Vivekananda
* To have special package trains for some tourist circuits
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FY15

* Target FY15 passenger traffic revenue of 446.5 bln rupees
* FY15 plan outlay seen 476.5 bln rupees
* FY15 total expenditure pegged 1.49 trln rupees
* FY15 pension provision seen at 288.5 bln rupees
* To scale down FY15 IRFC mkt borrowing to 117.9 bln rupee
* FY15 ordinary working expenses 1.13 trln rupees
* FY15 freight earning pegged 1.06 trln rupees
* Aim freight traffic growth of 4.9% in FY15
* See 4.9% growth in freight traffic FY15
* Aim freight earnings of 1.06 trln rupees in FY15
* FY15 total receipts pegged 1.64 trln rupees
* FY15 estimate surplus 6.02 bln rupees
* FY15 budget allocation for cleanliness up 40% on year
* Maximum plan outlay for projects to be completed in FY15
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FY14

* FY14 passenger earnings down by 9.68 bln rupees
* FY14 gross traffic receipts up 12.8% at 1.39 trln rupees
* FY14 working expenses 975.71 bln rupees
* FY14 surplus 37.83 bln rupees
* FY14 internal resource generation short by 27.9 bln rupees
* FY14 freight earning short by 9.4 bln rupee vs revised aim
* FY14 operating ratio at 94%
* FY14 gross traffic receipt 1.39 trln rupees
* Gross traffic receipts short of revised aim by 9.42 bln rupee
* FY14 passenger earning short by 9.7 bln rupee vs revised aim
* Bore 23 paise/passenger per km loss in FY14
* Unrealistic to depend only on fare hike to meet fund needs
* Fare revision decision was tough, but necessary
* Fare hikes will bring additional 80 bln rupees to Railways
* Need to explore alternate sources of resource mobilisation
* Only depend on fare hikes for mobilising funds
* Mismanagement, apathy led railways to cash-starved status
* Spent 94 paise for every 1 rupee in FY14
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REVENUES AND EXPENSES

* Rail revenue to be linked to fuel prices
* Revenue foregone on suburban fare hike rollback 6.1 bln rupee
* To take corrective steps to combat fund crunch
* Require 1.82 trln rupees to complete 359 projects
* Need 5 trln rupees/year for next 10 yrs for ongoing projects
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FINANCING, INVESTMENT

* Even high-speed train projects need PPP financing
* Seeking nod to allow FDI in railways
* Bulk of new projects to be financed via PPP
* Looking at PPP for raising bulk of resources
* Need foreign, domestic private investment for rail infra
* Need private FDI investment in railway sector
* Need to explore PSU surplus resources for rail infra projects
* Bulk of future projects to be funded via PPP mode
* Need to leverage Railways’ PSU resources
* Unrealistic to hike fares and burden passengers
* Govt funding insufficient to meet requirements
* Need to explore alternate sources of invest for railways
* Mull private investment in rail infra
* Incomplete projects need 1.82 trln rupee invest
* To seek Cabinet OK for FDI in railways, except operations
* Foot-overs, lifts, escalators at major stations via PPP
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MISCELLANEOUS

* Safety, cleanliness are high priorities
* Tariff policy adopted so far lacked practical approach
* The more projects we add the thinner we spread ourselves
* Freight rates revised periodically to compensate for losses
* Past focus has been on sanctioning projects, not execution
* Decline in freight traffic is revenue forgone
* Sustaining social duty hard without sacrificing efficiency
* Currently railways caries only 31% of total freight in India
* Indian Rail backbone of supply chain of defence establishment
* India Rail carries over 1 bln tn freight per year
* Vast tracts of hinterland still wait for connectivity
* Have 12,500 trains carrying 23 mln passengers/day
* Aim to be largest freight carrier in the world
* Feel there’s solution for challenges faced by railway
* Flooded with requests for new trains

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Monday’s session largely turned out to be disappointing for Dalal Street, which for four straight sessions in row registered losses on the back of heavy drubbing in select blue chip stocks, like ITC, HUL and Infosys that arrested any kind of uptrend at the start of F&O expiry week. Among the blue-chip stocks, ITC collapsed close to 6% on worries the government may raise taxes on cigarettes aggressively in the upcoming budget in July, Infosys was beaten down by close to 3%. Nevertheless, buying witnessed in last hour of trade minimized some losses on the bourses. By close of trade, while Sensex managed to shut-shop above the crucial 25,000 mark, with loss of over quarter of a percent, Nifty just ended shy off the psychological 7,500 level. However, broader indices outperformed larger peers with fat margins to end with gains of over 0.50%-0.65%. Nevertheless, prevailing positive sentiment after a steep hike in railway passenger and freight fares, which was seen as possibly the first installment of the “tough measures” Prime Minister Narendra Modi had hinted at as necessary to revive the Indian economy, prevented any sharp slide.

On the global front, erasing early gains, Asia pacific shares ended mostly in green. These shares were up in early deals on upbeat news from China’s factory sector which fuelled appetite for riskier assets mainly arrested. HSBC/Markit’s preliminary Chinese manufacturing survey reached a seven-month high of 50.8 for June, exceeding the 49.7 street and a final reading of 49.4 in May. Additionally, European shares fell early on Monday as downbeat readings of euro zone business activity revived worries over the pace of the economic recovery in the single currency bloc. Dampening expectations for a rebound in the euro zone’s second-biggest economy, data compiler Markit said its composite purchasing managers index (PMI) of activity in France’s manufacturing and services sectors slipped deeper into contraction territory in May.

Closer home, majority of the sectoral indices on BSE settled into positive territory despite sluggish session of performance. However, stocks from Fast Moving Consumer Goods, Information Technology and Consumer Durables counters turned out to be exceptions. On the flip side, stocks from PSU, Oil & Gas and Metal counters were the top gainers of the session. Metal shares gained on hopes of better demand after a preliminary HSBC survey showed activity in China’s factory sector expanded in June for the first time in six months as new orders surged. In non-sectoral guage activity, sugar stocks were flavour of the session, with all stocks from Shree Renuka Sugars, Bajaj Hindustan, Balrampur Chini Mills, Triveni Engineering and Industries, Dhampur Sugar Mills and Oudh Sugar Mills registering gains of over 10% in otherwise subdued market after the government announced various measures to help the sector. In a sweet development for the sector, agriculture Minster Ram Vilas Paswan said the import duty on sugar has been increased to 40 per cent from 15 per cent earlier. He also underscored that the government will increase ethanol blending with petrol to 10 per cent from current 5 per cent.

Meanwhile, In a bitter medicine, which was necessitated to set right the faltering finances of the railways that were aggravated by UPA’s mismanagement of the economy, Modi led government approved a steep hike in the train fares and freight rates. With this, fares of all classes would be hiked by 14.20%, while the freight rates would go up by 6.50%, effective from June 25. Of the total, as much as 4.20% of the fare hike is on account of a variable Fuel Adjustment Component (FAC) approved in last year’s rail budget, remaining 10% is a flat hike across all classes. Similarly, freight rates too have 5% flat hike over and above a 1.4% of the FAC.

Further, this decision would help Indian Railways to mop up an additional Rs 8,000 crore in the financial year. In present scenario, Railways’ subsidy to passenger operations had touched Rs 26,000 crore and its ordinary working expenses have been mounting on account of fuel bill and salary.

However, Railway Minister Sadananda Gowda had sought Modii’s approval to roll out the unpopular move barely a couple of weeks before the government’s first rail budget. Gowda had also made a case for the hike to Finance Minister Arun Jaitley earlier this week.

This move besides being unpopular also was tricky one for Sadananda Gowda as the previous government prevented the proposal of this very hike to be rolled out on May 16, the day of the election results that brought in the regime change. The expected mop-up of around Rs 10,000 crore had already been factored in the interim budget passed in Parliament before elections. This was perhaps the reason behind the automatic hike that was taken by the Railways on May 16, but the same had be quickly withdrawn on account of former Railway Minister Mallikarjun Kharge’s objection.

European markets were trading in red; UK’s FTSE 100 down by 0.21%, Germany’s DAX down by 0.35% and France’s CAC 40 was down by 0.33%.

The Asian markets concluded Friday’s trade mostly in red, with Nikkei ending slightly lower as investors tended to lock in gains from recent surges, despite optimism over the global economy. Moody’s Investors Service stated that the prolonged effects of China’s property market slowdown could hurt economic growth, but reforms to balance the economy will offset the negative impact. China’s gross domestic product growth may slow to 5-6 percent from 7-7.5 percent this year if property sales and building construction both fall by 10%. Indonesia’s outgoing finance minister stated that the next president will need to discard election rhetoric and focus on raising fuel prices and luring foreign investment to address the budget and current- account deficits. Southeast Asia’s biggest economy is struggling to contain a persistent current-account deficit that helped make the rupiah Asia’s worst performer last year, while ballooning fuel subsidy costs have increased the 2014 budget shortfall and forced a reduction in state spending. Japan’s All Industries Activity Index fell to a seasonally adjusted -4.3%, from 1.5% in the preceding month.

Asian Indices Last Trade Change in Points Change in %
Shanghai Composite 2026.67 2.94 0.15
Hang Seng 23194.06 26.33 0.11
Jakarta Composite 4847.70 -16.57 -0.34
KLSE Composite 1885.72 4.24 0.23
Nikkei 225 15349.42 -11.74 -0.08
Straits Times  3258.80 -10.22 -0.31
KOSPI Composite 1968.07 -23.96 -1.20
Taiwan Weighted 9273.79 -43.02 -0.46

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