Highlights of Railway Budget 2014-15 (Interim)

Highlights of Railway Budget 2014-15_1Its very important that you know what the Railway Budget 2014-15 contains as the major highlights can be asked directly in a lot of PI rounds or otherwise.

So here is deep cut version of what Railway Minister Mallikarjun Kharge presented in the parliament on 12 Feb 2014 :

Achievements / Initiatives:

  • Major landmark achievement in National Project of Kashmir
  • State of Meghalaya and capital of Arunachal Pradesh to be on Railway Map by this fiscal.
  • Gauge Conversion of strategically important 510 km Rangiya – Murkongselek line in Assam to be completed by this fiscal.
  • XIth Five Year Plan Targets exceeded in New Lines (2,207 km) , Doubling (2,758 km) and Electrification (4,556 km), Production of Diesel (1,288) & Electrical (1,218) Locos and Acquisition of Wagons (64,875)
  • Dedicated Freight Corridors on the Eastern and Western Routes – leading to strategically critical capacity augmentation.
  • Railways met from its own means the total additional impact of Rs one lakh crore due to implementation of 6th Pay Commission
  • In 2013-14, 1532 km of New Lines, Doubling and Gauge Conversion commissioned.
  • Production commenced at the new factories – Rail Wheel Plant, Chhapra ; Rail Coach Factory, Rae Bareli ; and Diesel Component Factory, Dankuni.
  • Specially designed coaches for adverse weather condition for rail travel in Kashmir.
  • Successful development of Corrosion resistant, lighter wagons with higher pay-load and speed potential upto 100kmph.
  • Railways sportspersons dominate national events by winning titles in 23 disciplines and runners up in 9 disciplines. In various international championships a total of 2 Gold, 4 Silver and 3 Bronze Medals won.

Measures for improving Safety & Security:

Highlights of Railway Budget 2014-15_2

  • No unmanned Level Crossing. A total of 5,400 unmanned level crossings eleiminated – 2,310 by manning it and 3,090 by closure / merger / construction of ROBs or RUBs.
  • Improved audio – visual warning to road users in advance of approaching trains.
  • Induction of indigenously developed Train Collision Avoidance System
  • Development of ‘crashworthy’ coaches
  • In last five years, offering employment to over one lakh persons in Group C categories and to 1.6 lakh persons in erstwhile Group D categories.
  • Provision of Vigilance Control Device in all locomotives
  • Various measures to prevent fire incidents on trains:Fire retardant materials, multi-tier protection for electric circuits, portable fire extinguishers in coaches, induction based cooking to replace LPG in pantry cars, intensive checks against explosives and inflammable materials.

Financial Health:

  • Rail infrastructure by cost sharing arrangement with State Governments; Karnataka, Jharkhand, Maharashtra, Andhra Pradesh and Haryana agreed to several projects. Several Public Private Partnerships (PPP) projects are in the pipeline.
  • FDI being enabled to foster creation of world-class rail infrastructure.
  • Rail Land Development Authority raised Rs 937 crore so far.

Modernisation and Technology Induction:

  • High Speed Trains-Joint feasibility study by India and Japan for Mumbai – Ahmedabad Corridor to be co-financed by Japan International Cooperation AgencyBusiness Development Study by SNCF for Mumbai – Ahmedabad corridor.
  • Semi- High Speed Projects
  • Exploring low cost option of speeds 160- 200 kmph on select routes

Greein Initiatives:

  • Railway Energy Management Company becomes functional. Windmill and solar power plants to be set up with 40% subsidy from Ministry of New & Renewable Energy.
  • 200 Stations, rooftops of 26 buildings and 2,000 level crossing gates to be covered.
  • Railways bagged 22 out of 112 awards given by the Government.
  • ‘Green Curtains’ along the track close to major stations; Pilot work at Agra and Jaipur
  • Coverage of Bio-toilets in 2,500 coaches and would be increased progressively.

Passenger Friendly Initiatives:

  • Overwhelming public response to e-booking of ticket
  • On-line tracking of exact location and running of train movements
  • 51 Jan-Ahaar outlets for Janta Meals ; 48 passenger escalators commisionsed at stations and 61 more being installed ; air-conditioned EMU services in Mumbai from July 2014 ; information display system in important trains to indicate stations & arrival time.
  • Upgradation’ scheme extended to AC Chair Car and Executive Chair car passengers.

Demand Management through Dynamic Pricing:

Premium AC Special train introduced in Delhi – Mumbai Sector with shorter advance reservation period and dynamically varying premium over tatkal fare

Enhancing Market Share:

Clearing missing links in Carrying Capacity + 8 tonne routes; freight train speeding ; upgradation of rolling stock ; increasing length of trains ; tariff and incentive schemes to encourage traffic to rail and minimizing empty running.

Rail Tariff Authority:

Independent Rail Tariff Authority to be set-up to advise on fixing of fares and freight, to engage all stake-holders; Fare currently to remain unchanged.

Highlights of Railway Budget 2014-15_3Information Technology:

Initiatives to be taken include – proliferation of cash accepting Automatic Ticket Vending Machines; ticketing on mobile phones in unreserved segments; system update on PNR status; online booking of retiring rooms at important stations; online booking of meals for selected en-route stations; introduction of e-forwarding note and electronic transmission of railway receipts for freight customers.

Revenue Freight Traffic:

  • Loading target of 1047 Million Tonnes for 2013-14 would be surpassed
  • Empty Flow Discount Scheme to be implemented
  • Carrying Capacity + 9 tonne + 1 tonne routes being planned
  • Easing of some restrictions on movement of imported commodities through Containers
  • Carrying capacity of 20 feet containers increased by 4 tonnes
  • Parcel Terminals & Special Parcel Trains with scheduled timings.
  • New policy on parcels to encourage transportation of milk.
  • New concept of ‘hub and spoke’ for parcel business
  • Third party warehousing in Special Parcel Terminals envisaged.

Financial Performance 2012-13

  • Loading of 1,008 Million Tonnes surpassed the R.E. target of 1,007 Million Tonnes
  • Paid full dividend Rs 5,389 crore to General Exchequer
  • 90.2% Operating Ratio in 2012-13
  • Repayment in full with interest of Rs 3,000 crore loan from the Government
  • Railway Fund Balances of Rs 2,391 crore

Financial Performance 2013-14:

  • Loading Target raised to 1,052 Million Tonne from B.E. 1,047 Million Tonne.
  • Freight Earnings Target revised to Rs 94,000 crore from B.E. Rs 93,554 crore
  • Stringent Financial control exercised and Ordinary Working Expenses pegged only at Rs 560 crore higher than Budget Estimates, despite various post-budgetary factors
  • Plan Outlay revised to Rs 59,359 crore
  • Operating Ratio likely to be 90.8%
  • Fund Balances to continue to grow to Rs 8,018 crore

Highlights of Railway Budget 2014-15_4Budget Estimates 2014-15:

  • Loading target of 1,101 Million Tonnes
  • Gross Traffic Receipts targeted at Rs 1,60,775 crore with Passenger Earnings (Rs 45,255 crore), Goods (Rs 1,05,770 crore), Other Coaching & Sundry Earnings (Rs 9,700 crore)
  • Ordinary Working Expenses placed at Rs 1,10,649 crore, higher by Rs 13,589 crore
  • Pension Outgo budgeted at Rs 27,000 crore against Rs 24,000 crore for 2013-14
  • The entire Dividend of Rs 9,117 crore to General Exchquer will be paid
  • Fund Balances likely to be Rs 12,728 crore.
  • Operating Ratio budgeted at 89.8%

Annual Plan 2014-15:

Annual Plan envisaged at Rs 64,305 crore with a Budgetary Support of Rs 30,223 crore , Internal Resources of Rs 10,418 crore and Extra Budgetary Resources of Rs 19,805 crore

New Surveys :

19 New Lines & 5 Doubling to be surveyed

New Trains:

  • 17 Premium trains
  • 38 Express trains
  • 10 Passenger trains
  • 4 MEMU
  • 3 DEMU
  • 3 Extensions of Trains and 3 Increase in frequency

If you are interested to read more, please take a look at the Full Text of Kharge’s Budget Speech.

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5 thoughts on “Highlights of Railway Budget 2014-15 (Interim)

    1. In total agreement with you.. Fare remain unchanged.. How is that even possible when the inflation has hit double digits. A lot is said in all the budgets but when it comes to implementation, the story is sad. A good point is the 2013-14 performance. That's one of the positive takes from this budget.

    1. Operating ratio means the money spent by railways to earn the revenue. It is calculated by dividing the revenue by actual expenditure incurred. Operating Ratio = Total revenue / Total expenses

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