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RAILBUDGET DATA GrossTrafficReceiptsIn201314likelytorisebyRs18062Crore FreightearningstargethasaccordinglybeensetatRs93,554crore,agrowthof9% Thenumberofpassengersisexpectedtoincreaseby5.2%andthepassengerfareearningstargethasbeen keptatRs42,210cr TotalearningsexpectedtobeRs1,43,742cr OperatingRatioLikelytoImprovesto87.8%In201314 HighestEverPlanOutlayofRs.63,363Crore

Measuresproposedtobetakenforsafety 1) Eliminationof10,797levelcrossingsduringthe12thPlanandnotaddinganynewLevelCrossing; 2) Continuedthrustonimprovedsignalingfornotonlyensuringmuchbettersafetyfortrainoperationsbut alsoenhancingthetrackcapacity; 3) IntroductionofTrainProtectionWarningSystem(TPWS)onautomaticsignalingsystems; 4) Followingsuccessfulcompletionofinitialtesting,theindigenouslydevelopedTrainCollisionAvoidance System(TCAS)isproposedtobeputtorigoroustrials; 5) Upgradationoftrackstructureusing60kgrails,260meterlongweldedrailpanelsandimprovedflashbutt weldingtechnology; 6) InductionofSelfPropelledAccidentReliefTrains(SPART)withspeedpotentialof160/200kmphontrial basiswithaviewtoputtinginplaceafastandreliabledisastermanagementsystem; 7) ProgressiveinductionofcrashworthyLHBcoacheshavinganticlimbfeature; 8) Rehabilitationof17bridgeswhichhavebeenidentifiedasdistressedtobecompletedoverthenextone year. ITimprovements NextGenerationeticketingsystemwillsignificantlyimprovetheenduserexperienceinrespectofeaseof use,responsetimeaswellascapacity. Newsystemshallbeabletosupport7200ticketsperminuteasagainst2000ticketsperminuteatpresent. Itwillsupport120,000simultaneoususersatanypointintimeagainstthepresentcapacityof40,000users withcapabilitytoeasilyscaleupasdemandincreasesinfuture. Systemwillmakeuseofadvancedfraudcontrolandsecuritymanagementtoolstherebyfurtherimproving fairnessandtransparencyindisbursaloftickets. Makingeticketingpossiblethroughmobilephones; ProjectofSMSAlertstopassengersprovidingupdatesonreservationstatusisbeingrolledoutshortly; CoveringlargernumberoftrainsunderRealTimeInformationSystem(RTIS),wherebyrailuserswillbeable toaccessinformationthroughnominatedwebsitesandmobilephones.

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ImplementationofFuelAdjustmentComponent(FAC)linkedrevisioninonlyfreighttarifffrom1stApril 2013.[LastyearfuelcomponentintariffswassegregatedasFAC] Asregardspassengerfares,sincethesewererevisedonlyinJanuarythisyear,theMinistrydoesnotindent topassontheadditionalburdentothemnowandrailwayswillabsorbtheimpactofRs850cronthis account. Marginalriseinsupplementarychargesforsuperfasttrains,reservationfee,clerkagecharge,cancellation chargeandtatkalcharge WhiletatkalchargesforsleeperclasshavebeenraisedbyRs15toRs25andforACchaircarfromRs25to Rs50,tatkalchargesinAC3tierhavebeenincreasedbyRs50andAC2tierandexecutiveclassbyRs100. ThereservationfeeforACFirstandExecutiveclasseshasbeenraisedtoRs60fromRs35andthatofFirst ClassandAC2doubledtoRs50.ReservationfeeforACchaircar,AC3economyandAC3tierhasbeen increasedtoRs40fromRs25andsupplementarychargesforsuperfasttrainsraisedbetweenRs5andRs 25.

OVERALLVIEWS: TheIndianRailwayshasachievedanimprovementinitsoperationsinthecurrentyear,201213,intermsof seekingtostaywithinitsmeans.ItsnetrevenuehasmorethandoubledtoRs15,750crorecomparedtothe previousyear,201112.Thishasledtoasharpimprovementintheoperatingratiorevenuetakenupby operatingexpensesfrom95to89percent.RailwayMinisterPawanBansalhasjustlytakencreditforbringing thisratiotolessthan90percentafterfouryears.HehasalsohighlightedthefactthattheloanofRs3,000crore takenbytheRailwaysin201112tomeetacashcrunchisbeingrepaidalongwithinterestinthecurrentyear. Butitisnecessarytogobehindthisoverallfiguretounderstandhowtheoperatingmarginhasbeenimproved. GrosstrafficreceiptshaveunderperformedintherevisedestimatesbynearlyRs7,000crore.Itistheabilityto keepatightreinonexpensesandotherfinancialallocationsthathasdonethetrick,withconsequencesthatdo notbodewellfortheIndianRailways'maintenance,modernisationandfutureexpansion.Provisionsfor depreciation,thedevelopmentfundandcapitalfundhavebeenslashedbyalmostathird.Trackrenewalshave gonedownby300kmto3,000kmcomparedtotargets.Constructionofnewlinesis470km,when700kmwas targeted.Similarly,wagonprocurementisdownby15percentcomparedtothepreviousyear.Thisis unsustainable.Trackrenewalisneededforsafety;newwagonsareneededforfreight;andnewlinesare requiredtoraisecapacityandearnmorerevenue.Theannualplan,budgetedatRs60,000crore,wasreduced byalmost15percentintherevisedestimates. Theministerhasannouncedthatfreightrateswillberevisedtwiceayeartotakecareofchangeinthepriceof energy,whichisunderstandableeventhoughitwillfurtherunderminetheRailways'competitiveedgevisavis theroadssector.Whatmakesitworseisthatasimilarautomaticadjustmentinpassengerfareswasn'tmade. MrBansalalsoannounced67newexpresstrainsand26newpassengertrains.Thoughmoretrainsaredefinitely needed,remembertheRailwayslosesmoneyoneachnewtrainaslongasfaresaren'thighenoughtorecover EssaysforIIM.com200913 Page2

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costs.Itis,therefore,notsurprisingthatthebudgetdoesnotholdoutanyhopeforarealturnaroundinthe performanceoftheRailwaysinthecomingyear.Thetargetforadditionalfreighttrafficis40milliontonnes, comparedto38milliontonneslikelytobeachievedinthecurrentyear.Withnosignificantgrowthinfreight traffic,passengerfareslikelytoremainthesameandexpensesonheadslikefuelsandpensionsbeinggiven,the operatingratiohasbeenpeggedatwhatwasforeseenforthecurrentyear.Whilethiswillpreventthingsfrom gettingworse,whatwillreallyharmthelongtermhealthoftheRailwaysisifinapreelectionyearthe organisationreallystickstotheminister'spromisetofill150,000vacancies.Withastaffstrengthofaround1.4 million,theorganisationisalreadygrosslyoverstaffed.Sincetheturnofthecentury,thestaffstrengthhasgone downmarginally.Theaimshouldbetohasten,nothalt,theprocess. HIGHLIGHTSOFRAILWAYBUDGET201314 67newExpresstrainstobeintroduced 26newpassengerservices,8DEMUservicesand5MEMUservicestobeintroduced Runof57trainstobeextended Frequencyof24trainstobeincreased FirstACEMUraketobeintroducedonMumbaisuburbannetworkin201314 72additionalservicestobeintroducedinMumbaiand18inKolkata Rakelengthincreasedfrom9carsto12carsfor80servicesinKolkataand30servicesinChennai 500kmnewlines,750kmdoubling,450kmgaugeconversiontargetedin201314 FirsteverraillinktoconnectArunachalPradesh SomeRailwayrelatedactivitiestocomeunderMGNREGA Forthefirsttime347ongoingprojectsidentifiedaspriorityprojectswiththecommittedfunding HighesteverplanoutlayofRs.63,363crore LoanofRs.3000crorerepaidfully. AnewfundDebtServiceFundsetuptomeetcommittedliabilities. Freightloadingof1047MT,40MTmorethan201213 Passengergrowth5.2%in201314 GrossTrafficReceiptsRs.1,43,742crorei.e.anincreaseof18,062croreoverRE,201213 DividendpaymentestimatedatRs.6,249crore OperatingRatiotobe87.8%in201314 Supplementarychargesforsuperfasttrains,reservationfee,clerkagecharge,cancellationchargeandtatkal chargemarginallyincreased FuelAdjustmentComponentlinkedrevisionforfreighttarifftobeimplementedfrom1stApril2013 Enhancedreservationfeeabolished Eliminationof10797LevelCrossings(LC)duringthe12thPlanandnoadditionofnewLCshenceforth Introductionof160/200kmphSelfPropelledAccidentReliefTrains Aadhartobeusedforvariouspassengerandstaffrelatedservices Internetticketingfrom0030hoursto2330hours Page3

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Eticketingthroughmobilephones ProjectofSMSalertstopassengersprovidingupdatesonreservationstatus NextGeneticketingsystemtoberolledout:capableofhandling7200ticketsperminuteagainst2000 now,1.20lakhuserssimultaneouslyagainst40,000now Introductionofexecutiveloungeat7morestations:Bilaspur,Visakhapatnam,Patna,Nagpur,Agra,Jaipur andBengaluru IntroductionofAzadiExpresstoconnectplacesassociatedwithfreedommovement FourcompaniesofwomenRPFpersonnelsetupandanother8tobesetuptostrengthenthesecurityof rainpassengers,especiallywomenpassengers 10%RPFvacanciesbeingreservedforwomen 1.52lakhvacanciesbeingfilledupthisyearoutofwhich47000vacancieshavebeenearmarkedforweaker sectionsandphysicallychallenged Railwaystoimpartskillstotheyouthinrailwayrelatedtradesin25locations ProvisionofportablefireextinguishersinGuardcumBrakeVans,ACCoachesandPantryCarsinalltrains PilotprojectonselecttrainstofacilitatepassengerstocontactonboardstaffthroughSMS/phonecall/e mailforcoachcleanlinessandrealtimefeedback Provisionofannouncementfacilityandelectronicdisplayboardsintrains ProvidingfreeWiFifacilitiesonseveraltrains Upgrading60stationsasAdarshStationsinadditionto980alreadyselected IntroductionofanAnubhuticoachinselecttrainstoprovideexcellentambienceandlatestfacilitiesand services 179escalatorsand400liftsatA1andothermajorstationstobeinstalledfacilitatingelderlyanddifferently abled AffixingBraillestickerswithlayoutofcoachesincludingtoilets,provisionofwheelchairsandbattery operatedvehiclesatmorestationsandmakingcoacheswheelchairfriendly CentralizedCateringServicesMonitoringCellsetupwithatollfreenumber(1800111321) ComplimentarycardpassestorecipientsofRajivGandhiKhelRatna&DhyanChandAwardstobevalidfor travelby1stClass/2ndAC ComplimentarycardpassestoOlympicMedalistsandDronacharyaAwardeesfortravelin Rajdhani/ShatabadiTrains TravelbyDuronotoTrainspermittedonallcardpassesissuedtosportspersonshavingfacilityoftravelby Rajdhani/ShatabadiTrains Facilityofcomplimentarycardpassesvalidin1stclass/2ndACextendedtoparentsofposthumous unmarriedawardeesofMahavirChakra,VirChakra,KirtiChakra,ShauryaChakra,PresidentsPoliceMedal forGallantryandpolicymedalforGallantry PolicyGallantryawardeestobegrantedonecomplimentarypasseveryyearfortravelalongwithone companionin2ndACinRajdhani/ShatabadiTrains Passesforfreedomfighterstoberenewedonceinthreeyearsinsteadofeveryyear. SettingupofsixmoreRailNeerbottlingplantsatVijayawada,Nagpur,Lalitpur,Bilaspur,Jaipurand Ahmedabad Page4

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SettingupofamultidisciplinarytraininginstituteatNagpurfortraininginrailrelatedelectronics technologies SettingupofacentralizedtraininginstituteatSecunderabadIndianRailwaysInstituteofFinancial Management Fivefellowshipsinnationaluniversitiestobeinstitutedtomotivatestudentstostudyandundertake researchonRailwayrelatedissuesatM.PhilandPh.D.levels FundallocationforstaffquartersenhancedtoRs.300crore Provisionofhostelfacilitiesforsinglewomenrailwayemployeesatalldivisionalheadquarters

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