Railway Minister Suresh Prabhu presented his second rail budget this year. He kept the fares unchanged. In his budget speech, he said that for this budget he owes its inspiration to vision of PM Modi who said: “My vision is to make railways backbone of India’s progress & economic development.”
He outlined the 3 pillars of strategy – raise new revenues, raise productivity and efficiency and revamp the processes. He also said that the Core objective is to become engine of economic growth, create employment and provide customer service.
So now let’s see what Mr. Prabhu had for the citizens of India. Here are the highlights of the Rail Budget 2016:
• Operating ratio kept at 92% FY17 as against 90% in current year.
• To generate revenues of order of Rs.1,84,820 cr next year which is a 10.1% higher than revised target of current year.
• The Capital plan of Rs 1.21 lakh crore.
• Aimed to generate 10-20% of revenues from non-tariff sources over next 5 years by monetizing assets.
• Railways will get Rs 40,000 crore budgetary support from the government.
• Railways incurred a loss of Rs 30,000 crore by subsidizing passenger fares.
• Rs 8.5 lakh crore to be spent over 5 years for modernization of railway infrastructure
• To have 2,800 kms of new tracks in next year, almost 30% higher than last year target.
• Two dedicated freight corridors by 2019.
• Railway electrification have increased by 50% & 2,000 km route to be electrified next fiscal year.
• 400 stations to be re-developed through PPP.
• 2 locomotive factories at the cost of Rs 40,000 crore to be set up.
• Overnight double-Decker train Uday Express to be introduced on busiest routes which will increased carrying capacity with 40% more.
• Three direct services, fully air-conditioned Humsafer, to travel at 130km per hour will be starting this year.
• Lower berth quota for senior citizens to be increased by 50%
• 33% of sub-quota for women in each of the reserved categories will be introduced.
• Railways announces measures for women security: All India 24X7 helpline, CCTV surveillance, reserved middle bay in coaches.
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