Rail Budget: Suresh Prabhu to balance modernisation with financial cost
Nav arjan (new earnings), nai punya (new benchmarks) and nav sanrachna (new structures): These are likely to be Union minister Suresh Prabhu’s mantra as he focuses on modernising the railways and turning around the ailing public transporter.union budget Updated: Feb 25, 2016 09:39 IST
Nav arjan (new earnings), nai punya (new benchmarks) and nav sanrachna (new structures): These are likely to be Union minister Suresh Prabhu’s mantra as he focuses on modernising the railways and turning around the ailing public transporter.
A direct passenger fare hike is unlikely despite a financial crisis plaguing the railways that ferries around 23 million people daily on its 65,000-km-long network.
Additional amenities for passengers including services for the handicapped and “carry home” bedrolls are likely to come attached with a price tag.
There is also a possibility of a “modernisation cess” on passenger tickets, the sources added.
Prabhu is expected to announce a slew of passenger services including a new train for economically weaker commuters – the Samarth Express.
Prabhu is also likely to announce the much talked-about National High Speed Rail Corporation (NHSRC) to implement Prime Minister Narendra Modi’s pet plan of running high-speed bullet trains.
The sources said Prabhu will give a progress report on an agreement with the Japanese government to execute the Mumbai-Ahmedabad line, as also on plans to procure six next-gen trains proposed to run on Rajdhani and Shatabdi routes.
The budget is likely to contain IT initiatives aimed at providing free WiFi at select stations and on-board entertainment services such as gaming and online retailing options.
“Plans for enabling the Indian Railways Catering and Tourism Corporation’s (IRCTC) foray into online retailing on the lines of Flipkart or Snapdeal will also be announced,” a source said.
Sources said the plan outlay is likely to be pegged around Rs 1.25 lakh crore in the budget that will put emphasis on monetisation of assets and capacity enhancement as business strategies aimed at pulling out the 163-year-old transporter from inertia and financial crisis.
The railway minister is likely to elaborate on strategies to scale up operations through aggressive strategies to improve freight earnings -- such as introduction of high speed parcel trains and roll on-roll off container services. He also has plans to refurbish 400 railway stations in the country with private sector participation.
The Railways failed this year to meet the operating ratio target of 88.5% but it is likely to be fixed at 91.5% for the next fiscal, the sources said.
Project implementation either in PPP mode or as joint venture projects with state governments or PSUs – with an emphasis on port and coal connectivity projects - are likely to be among other highlights of the budget.
The minister will also refer to progress made towards setting up a tariff regulatory authority to decide on freight and passenger rates but a bill to implement it is unlikely to be moved during the ongoing budget session of Parliament.
The sources said that the budget speech is likely to elaborate on a start up policy aimed at enabling business opportunities for entrepreneurs in rail-related services.
First Published: Feb 25, 2016 08:14 IST