New Delhi, Jul 8 : Sparing passengers of any further fare hike, Railway Budget for 2014-15
proposes to attract private domestic and FDI in infrastructure projects
and pursuing private-public partnership to boost the finances of the
cash-strapped railways. Having hiked fares to the tune of 14.2 per cent
recently, Railway Minister Sadananda Gowda who presented the new government’s first budget in Lok Sabha said he plans to leverage railway PSU resources by bringing in their investible funds in infrastructure projects.
He announced plans to introduce a bullet train in Mumbai- Ahmedabad
sector and setting up of a Diamond Quadrilateral network of high speed
rail connecting major metros and growth centres. A sum of Rs 100 crore
has been provided for initiating the project. Increasing the speed of
trains to 160 to 200 kms per hour on nine select sectors was another
highlight of the budget, which proposes to allow all experimental
stoppages to lapse after September this year.
The Budget disclosed that traffic growth declined and expenditures
went up in 2013-14 as compared to the revised estimates of previous
financial year. Gross traffic receipts stood at Rs 1,39,558 crore, short
of revised estimates by Rs 942 crore over the previous year. The
ordinary working expenses and pension outgo were also higher.
The budget estimates for 2014-15 assumes a freight loading 1101
metric tonnes, 51 metric tonnes more than the previous year, growth in
passenger traffic at 2 per cent and freight earnings at Rs 1,05,770
crore. Passenger earnings will be Rs 44,645 crore after a revenue
sacrifice of Rs 610 crore on account of monthly season ticket fares.
Total receipts for the current year have been pegged at Rs 1,64,374
crore and expenditure at Rs 1,49,176 crore. Disclosing that he needs
more than Rs nine lakh crore to completing the Golden Quadrilateral Network and Rs 60,000 crore for introducing one bullet train alone, Gowda told
the House, “Can I depend only on hiking fare and freight rates and
burden the public to realise these funds? This is unrealistic. I need to
explore the alternate means of resource mobilisation.” He proposed to
launch a scheme to bring in investible surplus funds of railway PSUs in
infrastructure projects which can generate attractive returns.
Proposing private investment in railways through domestic and FDI,
Gowda said growth depends heavily on availability of funds for
investment in rail infrastructure. Internal revenue sources and
government funding are insufficient to meet the requirement, the Railway
Minister said, adding the ministry is seeking Cabinet approval for
allowing FDI in rail sector. FDI, however, will be limited to infrastructure development and not allowed in operations, he said.
He said the concept of PPP has not been successful in raising
substantial resources for railways. “It is my endeavour to pursue this
in right earnest. It is our target that bulk of our future projects will
be financed through PPP mode, including the high-speed rail, which
requires huge investments.” Apart from mobilising resources, Gowda said
he needed to strategically manage other aspects of planning and
administration by adopting a near-holiday approach, setting timelines
for ongoing projects, strategic partnership and aggressive
indigenisation of imported projects.
The annual plan for 2014-15 has been fixed at the highest ever outlay
of Rs 65,445 crore with gross budgetary support at Rs 30,100 crore,
Railway Safety Fund Rs 2,200 crore, internal resources Rs 15,350 crore,
external market borrowing Rs 11,790 crore and EBR-PPP Rs 6,005
crore. The budget provides higher funds for ongoing projects in North
East, including 11 national projects. Rs 5,116 crore earmarked for
projects in North East, which is 54 per cent higher than the previous
year.
While Udhampur-Katra rail link in Jammu and Kashmir has been
dedicated to the nation, the focus will now be on completion of the
missing link between Banihal and Katra. 18 new line surveys have been
announced, which include rail connectivity to ‘char dham’ — Kedarnath,
Badrinath, etc, and Shimoga-Sringeri-Mangalore. Five Jansadharan trains
are being introduced along with five premium trains, six AC express
trains and 27 express trains and eight passenger trains.
The premium trains are between Mumbai Central and New Delhi,
Shalimar-Chennai, Secundarabad-Hazrat Nizamuddin, Jaipur-Madurai and
Kamakhya-Bangalore. In order to strengthen security in trains and
stations, the budget proposes to recruit 4000 women RPF
constables. Already 17000 RPF constables have been recruited and shall
be available for deployment shortly.
Gowda said safety of passengers is of paramount importance and it is
estimated that over Rs 40,000 crore would be needed to be invested in
track renewals, elimination of unmanned railway crossings and road
overbridges and underbridges. A provision of Rs 1,785 crore has been
earmarked for railway overbridges and underbridges.
Outlining IT initiatives, the minister said the railway reservation
system is being revamped to move into next generation E-ticketing
system, which will support 7200 tickets per minutes to allow 1,20,000
simultaneous users. Railways will move to paperless offices in five
years, provide wi-fi services in A-1 and A category stations and in
select trains, real-time tracking of trains and rolling stock,
mobile-based wakeup call system for passengers and mobile- based
destination arrival alert. .
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