Rail Budget 2016: No hike in passenger fares; confirmed train ticket to everyone by 2020

Zee Media Bureau/Ajeet Kumar/Reema Sharma

New Delhi: Union Railway Minister Suresh Prabhu made no changes either in passenger fares or freight rates while presenting his second Rail Budget in Parliament on Thursday.

Prabhu announced introduction of three new super-fast trains and creation of dedicated north-south, east-west and east coast freight corridors by 2019.

Railway Minister also promised rationalising of the tariff structure by undertaking a review to evolve competitive rates vis-a-vis other modes of transport and to expand the freight basket as a means of additional revenue mobilisation.

The three new super-fast trains announced by him include 'Humsafar' which will be a fully air-conditioned 3AC service with option of meals. 'Tejas' will showcase the future of train travel in India with speeds up to 130 km per hour with onboard services such as entertainment, local cuisine and wifi.

The two trains will ensure cost recovery through tariff and non-tariff measures while 'Uday' will be an overnight double-decker along with 'Utkrishit' double-decker air-conditioned yatri express on the busiest routes.

For improving quality of travel for unreserved passenger, a super-fast 'Antyodya' express service would be introduced. 'Deen Dayalu' unreserved coaches with portable water and higher number of mobile charging points would also be introduced.

Prabhu also announced that there will be increase in seat quota this year for both women and senior citizens. While the seat quota will be increased by 50% for senior citizens, a sub-quota of 33% will be reserved for women in all categories.

Key Highlights of Rail Budget 2016

PASSENGER AMENITIES

* To raise quota of lower berth for women, senior citizens
* To build additional toilets in 475 stations before FY16 end
* Aim 17,000 bio-toilets before FY16 end
* To install 30,000 bio-toilets at stations
* At least one women-friendly toilets at all stations this FY
* Initiated audit for punctuality of passenger trains
* Disposable bed rolls at all stations for all classes
* Installed CCTV cameras at 311 stations
* All railway stations to be under CCTV surveillance in phases
* To introduce CCTV coverage at all Tatkal counters
* New catering policy for multipurpose stalls at stations
* To extend e-catering services to all 408 A1, A2 stations
* IRCTC to introduce local cuisines available on demand
* IRCTC to unbundle catering services
* To start pilot project for menu for infants on trains
* Station to be made excellence centre for passengers
* To build new stations as per Accessible India guidelines
* All customer-facing staff to have a uniform
* FM radio at trains via public announcement system
* To launch Rail Bandhu magazine in all regional languages
* Drones, satellite technology to review progress of projects
* To install 20,000 screens for advertisement at stations
* Aim to up advt revenue by up to 4 times of current level
* To examine revenue potential of 20 stations in 3 months
* To focus on exploring advertising potential
* IRCTC website offers e-commerce opportunities

NEW TRAINS, LINES

* To introduce 'Deen Dayalu' coaches
* Deen Dayalu coaches for unreserved passengers for long travel
* To have Hamsafar, Tejas, Uday coaches for reserved passengers
* Hamsafar trains to have all 3 A/C coaches
* Tejas speed to be 130 km/hour
* To add 2 or 4 more unreserved coaches in long distance trains
* Plan to electrify 2,000 km track in FY17
* Track laying to be at 13km/day in FY18, 19km/day in FY19
* North-South dedicated freight corridors in Delhi-Chennai
* Plan Kharagpur-Vijaywada freight corridor
* Plan Mumbai-Kharagpur freight corridor
* To put 3 freight corridor projects on high priority
* Proposed dedicated freight corridor for east-west, east coast
* Proposed dedicated freight corridors for north-south
* To build more dedicated freight corridors
* 2 dedicated freight corridor to be commissioned by 2019
* Decongestion on Jalandhar-Jammu line going on
* Mizoram, Manipur to come under broad gauge network soon
* To launch long distance fully unreserved Antyodaya trains
* To have more unreserved passenger coaches
* Overnight double-decker trains named 'Uday trains'
* Overnight double-decker trains for better access on busy line
* To run Aastha Circuit Trains to connect key pilgrim centres
* Resolved all issues with Kolkata's east-west corridor
* Elevated corridors between Churchgate-Virar, CST-Panvel
* To partner with Delhi govt for ring rail system in Delhi

 
INVESTMENT PUSH

* To scout international markets for rupee bonds
* Secured funding from LIC at favourable terms
* Bankable projects assured of funding now
* LIC to invest 1.5 trln rupees over 5 years
* 1 rupee invest in rail can impact econ output by factor of 5
* In partnership with SAIL, NTPC, coal ministry on funding
* Signed MoUs with 6 states for JVs
* Got expressions from 17 states to form JVs
* MoUs with zonal railways for quantifying performance
* Forming JV with states for local rail projects
* Availing multilateral financing for station development
* Cabinet approved redevelopment of 400 stations via PPP model
* Bidding process in advanced stage to redevelop 4 stations
* To undertake bidding to redevelop some big stations next yr
* Bankable railway projects to be completed in 3-4 years
* Working on fincl closure of CST-Panvel elevated corridor soon
* Financial closure of Churchgate-Virar elevated corridor soon
* SPV for implementing high-speed projects to be registered
* Allot 500 mln rupees for start-up as innovation grants
* Aim to award all projects above 3 bln rupees via EPC by FY18
* To implement minimum of 20 projects via EPC mode in FY17
* To improve efficiency via policy on procurement, consumption
* Finalised standard document for undertaking work via EPC mode
* Examining feasibility for a holding co to monetise assets

INFRASTRUCTURE, MODERNISATION

* To be at forefront of infrastructure growth
* To generate employment for 90 mln man days by FY18
* To generate employment of 140 mln man-days in 2018-19
* To commission broad gauge lines at 7 km/day FY17
* FY17 track commissioning aim 2,800 km
* Aim to have zero direct discharge of human waste by 2020
* To meet reservation on demand by 2020
* Aim 80 km/hour avg speed of express train by 2020
* Freight speed seen at 50 km/hr by 2020
* To run semi high-speed trains on Golden Quadrilateral by 2020
* To eliminate all unmanned level crossings by 2020
* Action initiated on 139 FY16 Rail Budget announcements
* To take zero-base budgetary approach for freight
* To conduct recruitment online
* To set up Margao, Hazira ports FY17 via PPP
* To spend 8.5 trln rupees over 5 yrs to modernise rail infra
* To hasten electrification of railways working with Power Min
* To up allocation for electrification by 50%
* 65,000 additional berths generated in FY16
* Taken steps to significantly improve svcs for rail passengers
* Dedicated IVRS system receiving over mln feedback calls daily
* Set up mechanism to get direct feedback from customers
* Responsiveness to customer needs touched new heights this yr
* Initiated IT-based internal audit
* Signed MoUs with some zonal railways
* To move to online contract award system in FY17
* Social media being used as a tool to bring transparency
* Mission to ensure transparent bidding process
* To set up 2 loco units with 480 bln rupees invest
* Aim to have 100 WiFi-enabled stations this yr, 400 in next 3
* To redevelop stations by different models
* E-ticket capacity 7,000 tickets/minute now vs 2,000 earlier
* Introduced 1,780 automatic ticket vending machines
* Initiated capacity augmentation on some busy routes
* Developed application to maintain centralised land data
* To open cashless ticketing facilities for foreigners in 3 mos
* To start track management system under Digital India
* To introduce bar-coding of tickets at major stations
* To allow cancellation of tickets via call on 139
* To install GPS-based information service on all trains
* To set up collision avoidance system at high traffic networks
* Mission Raftaar to double speed of freight, superfast trains
* To buy 1,954 coaches FY17 locally
* To acquire 300 diesel locos FY17 locally
To acquire 1,127 premium coaches FY17
* To acquire 280 electric locos locally FY17
* To buy 346 MEMU, DMU trains FY17

FREIGHT, FARES

* No hike in passenger fares
* FY17 freight target 1,157 mln tn
* Incremental freight traffic of 50 mln tn in FY17
* FY17 coal freight target 577.80 mln tn
* FY16 revised freight estimate 1,107 mln tn
* FY17 container freight target 48 mln tn
* FY17 oil, lubricants freight target 43.5 mln tn
* FY17 food grain freight target 46 mln tn
* FY17 fertiliser freight target 56 mln tn
* FY17 cement freight target 111 mln tn
* FY17 iron ore freight target 125.7 mln tn
* Freight traffic has been declining; determined to revive it
* To rationalise tariff plan to revive freight movement mkt shr
* To review tariff policy to evolve competitive fare structure
* To focus on last-mile connectivity for freight business
* Less than 5% of revenue from non-tariff avenues
* To expand freight basket
* To sign long-term freight rate contract with big customers
* To develop 10 new goods sheds in FY17
* To allow existing terminal sheds to access container traffic
* To set up logistic parks through PPP model
* Eyeing containerisation of freight traffic, roll on-off svc
* To start timetable-based container trains this year
* To set up rail auto hub in Chennai
* To build rail auto hubs to capture automobile traffic
* To permit container freight operators to offer parcel service
* To start freight container, parcel, special commodity trains

 
 FY17 ESTIMATES

* Operating ratio seen 92%
* Plan outlay seen 1.21 trln rupees
* Gross traffic receipts 1.85 trln rupees
* Revenue seen 1.84 trln rupees
* IRFC market borrowing 197.6 bln rupees
* Rail Vikas market borrowing 2.4 bln rupees
* Goods earnings 1.18 trln rupees
* Passenger earnings 510.1 bln rupees
* Pension outgo seen 455 bln rupees
* Institutional finance 209.85 bln rupees
* Investment via partnerships 183.4 bln rupees
* To spend 102.79 bln rupees on locomotive buys
* To spend 91.35 bln rupees on passenger coach buys
* To spend 59.43 bln rupees on goods wagon buys
* Capex to grow exponentially
* Investment rate of capex has increased substantially
* Increasing rigour on cost optimisation
* Freight's contribution to earnings seen 67%
* Planned 44 new projects worth 927 bln rupees
* To get up to 10-20% revenue from monetising assets in 5 years
* Monetisation of available assets already underway
* Aim to monetise assets to raise non-tariff resources
* To develop 10 logistics parks in PPP mode in FY17
* To save 15 bln rupees by direct procurement of diesel
* Rolling stock expenditure seen at 272.78 bln rupees

 
FY16 REVISED

* 87.2 bln rupees saved from last year's budget estimate
* Operating ratio seen 90%
* Revised freight earnings 1.12 trln rupees
* Revised plan outlay unchanged at 1 trln rupees
* Revised surplus 114 bln rupees
* Revised pension outgo 345 bln rupees
* Revised ordinary working expenses at 1.10 trln rupees

OBJECTIVE

* Budget reflects aspirations of the entire railway family
* Core objective is to improve individual experience
* Railways have stood the test of time
* Need to bring in new approach
* Making all efforts to turn PM's vision into reality
* Railways facing headwinds on tepid economic growth
* Will lay out three pillars of strategy
* Will revisit all rules, structures to overhaul railways
* Looking at new areas for generating revenues
* Need to reorganise, rejuvenate, restructure railways
* Railways facing headwinds from 7th pay panel burden
* Will engage with global agencies for funds
* Absolute deductions planned in expenses such as diesel
* Have significantly reduced cost of power procurement
* To improve procurement practises at par with international norms
* Punctuality has gone up to almost 95%
* To include implementation reports in Budget
* Carry 23 mln passengers every day
* Special teams to screen railway operations
* To introduce 33% quota for women passengers
* Aim 40-bln-rupee revenue from rail manufacturing activities by 2020

 
MEASURES

* Anti-falling measures in suburban coaches
* To eliminate accidents by adopting latest technology
* Entered into R&D pacts with Korea, Japan to improve ops
* Supporting 120,000 concurrent users now vs 40,000 earlier
* Every customer a brand ambassador for railways
* To upgrade Baroda rail institute to full fledged university
* Working on implementing Kakodkar panel report on safety

MISCELLANEOUS

* Set up Swachh Rail waste aggregation and recycling centre
* To start Clean-My-Coach service on pan-India basis
* Coolies to be addressed as sahayaks now
* To train porters; provide them new uniforms
* To redesign coaches to improve capacity
* To offer travel insurance in tie-up with insurance cos
* Group insurance scheme for porters being considered
* To prioritise local domicile for station business licences
* To beautify Ajmer, Amritsar, Dwarka, Gaya stations
* To beautify stations at pilgrimage centres
* To beautify Puri, Varanasi stations
* To partner Karnataka govt for Bengaluru suburban train svcs
* To collaborate with Telangana govt for suburban systems
* To ask states to stagger office timings during peak hours
* To collaborate with Gujarat, Tamil Nadu for suburban systems
* To raise low-level platforms in Mumbai for safety
* To detail policy on integrated suburban ecosystem in 4 mos
* To build integrated suburban ecosystem via new invest model
* To appoint liaison managers for freight customers
* Hope to soon have draft bill on rail development authority
* Pertinent to have regulatory mechanisms
* To explore possibility of hiring general purpose wagons
* To monetise land along track to lease out for horticulture
* Important to monetise land along tracks
* To monetise soft assets such as passenger data, software
* National Rail Plan to be formulated
* National Rail Plan to integrate rail network with other modes
* To set up railway research & development organisation
* Railway Planning & Investment Organisation being set up
* To set up rail development authority for fair pricing of svcs
* To mull holding co for all rail assets
* To mull opening up leasing of general purpose wagons
* Propose to reorganise Railway Board on business lines
* To use drones, GPS to monitor progress of major projects
* Propose to reorganise rail board
* To focus on workforce safety
* New mission to eliminate unmanned railway level crossings
* To explore feasibility of leasing general-purpose wagons
* Launching 7 missions for railways
* Achieved significant progress in transforming railways
* To significantly improve work on environ issues next year
* Gangmen to have wireless devices to warn on approaching train
* Working with NABARD to provide access to self-help groups
* To provide 100 students internship of 2-6 mos every year
* To generate 1,000 MW solar power in next few yrs
* All stations to be covered with LED luminaires next 2-3 yrs
Can cut power use by 10-15% in non-traction area, audit shows