PIB media release

• Indian railways likely to record the best possible operating ratio at 78.7 per cent
• Cash surplus before dividend expected to be around rs. 20,000 crore
• Passenger earnings up by 14 per cent through additional coaches in popular trains;  other coach earnings rise by 48 per cent
• Railways register unprecedented increase of 17 per cent in both freight earnings and gross traffic earnings
• No increase in passenger fares and freight rates
• Fares of second class in non-suburban ordinary passengers and non-super fast express/mail trains reduced by one rupee per passenger
• Dynamic pricing policy - differential discounts in airconditioned class during busy & lean seasons
• Charges for e-ticketing through internet reduced
• Process of rationalisation of freight structure to continue
• Freight rates for diesel, petrol and ammoni cut by 5 per cent
• Freight loading targetted at 785 million tonnes in 2007-08
• Eight more garib raths to be introduced  
• 32 pairs of new trains introduced;   23 pairs of train routes extended
• New mission targets;  200 million tonnes of cement and steel to be carried by railways by 2011-12
• Container traffic targetted at 100 million tonnes by 2011-12
• Triple stack container trains on diesel routes and double stack container trains on electrified routes planned
• Transportation of coal, cement and steel--   entrepreneurs invited to enter into service level agreements for better operating efficiency
• Upgradation of freight terminals handling more than 15 rakes a month
• 22.9 tonnes and 25 tonnes axle-load freight trains to run on more routes
• Manufacturers to be encouraged to design wagons with higher payload and new technology
• 800 additional coaches for popular trains
• Plan to provide cushioned seats in unreserved coaches too
• New trains to have six unreserved coaches instead of conventional four
• Number of special coaches for physically challenged to be increased
• Exclusive coaches for small vendors in passenger trains
• Better travel facilities for passengers:  country-wide call centres for enquiry,   more reserved/unreserved ticketing facilities, automatic ticket vending machines to be installed
  in metropolitan cities in the next two years
• Year 2007 declared  as “cleanliness year”
• New profile for railways in the eleventh five year plan: focus on doubling transport capacity and reducing unit cost of transportation by increasing volumes
• Construction of eastern and western dedicated freight corridors to commence in coming financial year
• Pre-feasibility study for high-speed passenger corridor --  trains to run at 300-350 kms. per hour
• Efforts to provide air-conditioned suburban trains in Chennai, Kolkata and Mumbai and escalators at important stations
• Production of rolling stock will be doubled in the current plan;  production of high-horse power and energy efficient locos to be increased
• Increased investment in information technology to enhance earnings, ensure effective utilization of human and physical resources and facilitate long-term policy decisions
• Enhanced railway safety through introduction of anti-collision devices, sub-ways at unmanned level crossings and improved crash-worthy coaches
• Railway security to be enhanced through cctv, provision of hand-held metal detectors and surveillance cameras

New Delhi, Feb 26: The Union Minister for Railways, Lalu Prasad, unveiling the Railway Budget for the year 2007-08 in the Lok Sabha on Monday was upbeat about the performance of the Indian Railways which have rendered an unprecedented surplus in spite of reduction in passenger fares. 

Lauding the contribution made by the 14 lac railway employees in conquering all the odds with an indomitable spirit, Shri Lalu Prasad said that by rendering an unprecedented surplus in spite of a reduction in the passenger fares,  we have disproved the myth that the railways were sinking into a financial crisis due to social obligations.

Outlining the record-breaking financial performance of the Railways during the last nine months, the Minister said that the railways had registered a historic 17 per cent increase in both freight earnings and gross traffic earnings.   The railways’ cash-surplus before dividend is expected to be around Rs. 20,000 crore and the railways are poised to achieve an unprecedented operating ratio of 78.7 per cent.  

The freight performance of the railways has been outstanding for the third consecutive year with an incremental loading of around 60 million tonnes.   Buoyed by the excellent performance in freight the railways have set new mission targets of 200 million tonnes of cement and steel transportation by the year 2011-12.    The target for container traffic has been set at 100 million tonnes by 2011-12 from the present 20 million tonnes.   Lalu Prasad said that a high level working group has been constituted to achieve these goals.   The freight loading for the year 2007-08 is targetted  at 785 million tonnes.

The coming year is likely to see triple stack container services on diesel routes and double stack container trains on the electrified routes on a pilot basis.  As part of its business strategy, the railways have invited private entrepreneurs as well as public sectors like NTPC,  for entering into service-level agreements (SLA) for transportation of coal for power plants.   The Minister assured that the Railways’ experience in running merry-go round systems will help companies cut transportation costs.

With a view to meeting the increase in railway traffic, the Minister that a decision has been taken to develop basic facilities at freight terminals handling more than 15 rakes per month.    A multi-pronged strategy of increasing payload and reducing the tare weight of trains is being put in place to effect an improvement of NTKM to GTKM ratio.     The Railways are poised to increase and extend the running of 22.9 tonne axle-load trains and 25 tonne axle-load trains. 

In a new initiative, the Railway Minister announced that wagon manufacturers would be permitted to supply wagons of their own designs with bogies, coupler, draft and brake gear, recommended by Railways Design System Organisation (RDSO).  Private initiative is being invited to encourage development of such new technology wagons since these higher payload lower tare weight wagons would be costlier as compared to old wagons.

Turning to amenities for passengers, the Railway Minister has announced provision of cushion seats in unreserved second class coaches.   The number of unreserved coaches in all new trains has been increased to six from the present four.    The Railway Minister has said that every possible effort would be made to increase such coaches in existing trains as well excluding the Jan Shatabdi and the fully air-conditioned A.C. trains.

There is no increase in passenger fares for the year 2007-08.   A variable fare scheme for the peak season and lean season has been introduced under the dynamic pricing policy.   While discounts in the air-conditioned class varies from 2 per cent to 8 per cent depending on the class and the season, for the new sleeper coaches having 84 berths the discount is 4 per cent irrespective of the seasons.   Expanding the number of Garib Raths the Railway Minister announced that eight more Garib Raths would be introduced in addition to 32 new pairs of trains and extension of 23 pairs of trains.  

The Minister announced that the daily ticket fares for non-suburban second class ordinary rains and non-superfast Mail/Express trains will be reduced by rupee one per passenger.  To encourage e-ticket usage, the  charges for e-ticketing through Internet has been reduced.   The per e-ticket charge for sleeper class and A.C. class has been reduced from Rs. 25 to Rs. 15 and Rs. 40 to Rs. 20 respectively.   Besides, the minimum charge, there will be an additional charge of Rs. 5 per passenger for booking of every additional passenger subject to a maximum charge of Rs. 25 in sleeper class and Rs. 40 in the A.C. Class.

Lalu Prasad also announced that a quota for allocating  adequate lower berths will be set aside in A.C. and Sleeper Classes for Senior Citizens and women above the age of 45 travelling alone.   The Minister also announced extension of 50 per cent concession to the students appearing in the Main Written Examination of UPSC and Central Staff Selection Commission.   

Special attention has also been given to physically challenged passengers with the introduction of specially manufactured coaches with wider doors, more aisle passages and specially designed toilets for passengers on wheel chair.   These coaches are to be introduced in all Mail/Express Trains over the next two years.   The Minister also announced ear-marked coaches in passenger trains for Milk and Vegetable vendors and other retail sellers who transport their goods by train.

 The Minister has also provided for better passenger amenities with train enquiry call centres in all four regions of the country, improved PRS systems which will provide current vacancy position of berths even on running trains, expansion of PRS counters, automatic ticket vending machines and expanded e-ticket reservation.

New design coaches have resulted in greatest seating and berth capacity.   These coaches are to be introduced from 2007-08.   Shri Lalu Prasad also announced better passenger amenities at Railway Stations.  He said that the work has started in developing five railways stations as model stations in each division and is likely to be completed by March 2007.   The year 2007-08 is to be observed as “Cleanliness Year” by the Indian Railways.

Addressing the Lok Sabha, the Minister charted out a new profile for the Indian Railways in the Eleventh Five Year Plan marked by jump in investment for modernising freight and passenger corridors, gauge conversions, rolling stock modernisation and use of IT.   The Railways have targetted a freight loading of 1100 million tonnes by the end of the Eleventh Five Year Plan.    This is nearly 500 million tonnes more than the  revised estimate target of 726 million tonnes in the current Financial Year.   Similarly, the passenger traffic is expected to grow to 840 crore by the terminal year of the Eleventh Five Year Plan.  All this calls for expanded railway transport capacity  while bringing down unit cost by playing the volume game, the Minister said.   The railways have put in place a twin -- mid-term and long-term -- policy strategy which aims at modernisation and technological upgradation on the one hand and enhancement of the capacity of the network and rolling stock on the other.

 The Eastern and Western dedicated freight corridors which will start in the coming Financial Year will be completed during the Eleventh Five Year Plan at a cost of about  Rs. 30,000 crore.     The Minister also announced that the Railways would be conducting pre-feasibility surveys for construction of East-West, East-South, North-South and South-South corridors.   He said, after completion of the freight corridors the problem of passenger and goods trains running on the same network at different speed will be solved.

 Another thrust area during the Eleventh Plan will be to convert a majority of metre gauge line still remaining to broad gauge.   Projects where State Governments contribute 50 per cent of the cost will be given priority in sanction and implementation.   Gauge conversion will facilitate integrating the remote and far-flung areas of the country with the national main stream.

The Eleventh Five Year Plan is also likely to see development of  the high-speed passenger corridor.   Shri Lalu Prasad informed the Lok Sabha that the Railways have decided to conduct pre-feasibility studies for construction of high speed passenger corridors, equipped with the state-of-the-art signaling and train  control systems, for running high speed trains at a speed of 300-350 Kms. Per hour;   one each in the Northern, Western, Southern and Eastern regions of the country.   These trains will cover distances of upto 600 kms. in two to three hours.    The railways will explore alternatives including the Public-Private partnership model for implementation of these corridors.

During the Eleventh Five Year Plan, the Railways will also  stress on the second axis of development which is rolling stock modernisation and capacity augmentation.   Expansion of network has to be matched with expansion in rolling stock and the railways hope to meet the increased demand by  capacity expansion of rail coach and loco production units.   One new factory each for rail coaches, diesel locomotive, electric locomotive and wheels will be established.   The locomotive to be manufactured in these units will be equipped with the state-of-the art technology and will be capable of hauling longer, heavier high axle load trains.  The new Rail Coach Factory will produce high capacity, modern and comfortable coaches, Similarly production of 32 tonne axle load, higher pay load lower tare weight and track-friendly wagons will start for the new Dedicated Freight Corridors.

The Minister announced that the investment in the IT project will be increased to harness increased passenger and freight earnings, reduce operating costs, improve the image of the railways and help top management in arriving at long term policy decision.   A commercial portal is to be developed in the next three years for yield management to attract higher traffic for returning empty trains and filling up vacancies.

Dwelling on the public-private partnership model, the Minister said that PPP is not a compulsion, nor a fashion for us.   He said that the Railways were seeking partnership with the private sector on terms that would protect both the railways and customers interest.   He  further said that  in the Eleventh Five Year Plan PPP’s options will be explored  to modernize metro and mini metro stations with world class passenger amenities, to construct multi-modal logistic parks warehouses and budget hotels.   He said that the PPP schemes are such that one and one will make eleven and not two.

Turning to railway safety and security the Minister said that the Depreciation Reserve Fund has been increased more than two-fold to Rs. 5500 crore from Rs. 2100 crore in 2011-12.   He said that out of the Rs. 17,000 crore Special Railway Safety Fund, most of the works of renewal of over-aged tracks, bridges, track circuiting and rolling stock will be completed by March 2007 and all the remaining works will be completed by March 2008.    As per the Corporate Safety Plan of the Railways, the testing of anti-collision device on North East Frontier Railway is in its last phase and is likely to be completed by March 2007.  

In the background of the recent bomb blast on the Delhi-Atari Link Express and the Mumbai Sub-urban services last year, the Minister said security is being strengthened through provision of hand-held metal detectors, explosive detection devices, CCTVs and smart video cameras at sensitive railway stations.   In consultation with security experts an integrated extensive security and surveillance system is being developed for Mumbai suburban services, he said.

Railway Minister Lalu Prasad announced 55 new trains in the Rail budget 2006-07 for different destinations across the country. 

NEW TRAINS

Weekly

Shramik Express
Ahmedabad-Patna Azimabad Express
Muzaffarpur-Kolkata Tirhut Express
Kishanganj Garib Nawaj Express
Yeswantpur Garib Nawaj Express
Ranchi Garib Nawaj Express via Varanasi
Sonpur-Chhapra-Jammu Tawi Mour Dhwaj Express
Delhi-Patna Garib Rath (AC)
Delhi-Mumbai Garib Rath (AC)
Delhi-Chennai Garib Rath (AC)
Bangalore-Darbhanga Express
Delhi -Saharsa Poorabiya Express
Valsad-Udhna-Kanpur Udyogkarmi Exp
Durg-Gorakhpur Express via Faizabad
Chennai-Tiruvananthapuram Express
Chennai Egmore-Nagercoil Express
Chennai-Coimbatore Express
Madurai-Tirupati-Manmad Express
Bhubaneswar-Pondicherry Express

Bi-weekly
 
Howrah-Mumbai Express
Tatanagar-Yesvantpur Express
Chennai-Bilaspur Express
Pune-Lucknow Express
Jabalpur-Jammu Tawi Express
Purna-Nanded-Patna Express
Purna-Adilabad Passenger Tri-weekly
Howrah-Puri Express
Visakhapatnam-Nizamabad Express
Jaipur-Amritsar Express
Saharsa-Amritsar Garib Rath (AC)

Exp Daily

Rae Bareli-Pratapgarh-Lokmanya Tilak
Darbhanga-Kolkata Mithilanchal Express
Bhubaneswar-Baripada Express
Delhi-Raibareli Express
Chennai-Mangalore Express
Bhuj-Bareilly Express
Machilipatnam-Tirupati Fast Passenger
Jogbani-Kolkata Express
Saharsa-Patna Kosi Express
Link Express (Darbhanga to Guwahati)
Chennai-Tiruvananthapuram Express
Nagpur-Raipur Intercity Express
Indore-Bhopal Intercity Express
Radhikapur-Sealdah Link Express
Mathura-Alwar Passenger
Gudur-Tirupati Passenger
Hajipur-Sonpur-Chhapra-Siwan-Thawe

Passenger

Mailani-Palia Kalan Passenger (MG)
Jallandhar City-Nakodar DMU
Nanded-Adilabad Passenger
Madurai-Rameswaram Passenger
Kumarghat Agartala Passenger
Asansol-Bokaro (MEMU)
Bankura-Ranchi Passenger via Purulia
Ajmer-Udaipur City Express

Basic Amenities

ATMs, cyber-cafes to be provided at all major stations
E-Ticket and I-Ticket extended to all mail and express trains
E-Ticket charges reduced. These can also be bought from travel agents
Four popular trains to be provided with world-class

Passenger amenities

Journey times of Shatabdis, Rajdhanis and certain mail express trains to reduce
Number of coaches in 190 trains is being increased up to 23-24 coaches
All category stations to be made as model stations.
Food plazas to be opened and automatic vending machines to be installed
Upgrade of lower class passengers to higher class available on all Rajdhanis and mail/express trains.
During rebuilding of coaches, more comfortable seats, public address system and electronic information display, better lights, etc to be provided l 800 more UTS (Unreserved ticketing system) centres at all stations, category stations and some important category stations to be opened l Pilot project to install 200 automatic ticket vending machines in Mumbai suburban wherein tickets will be dispensed automatically through smart cards.   

Improvement in passenger amenities

All 'A' & 'B' category stations to be made model stations.
Help of architects to be taken in all divisions to make station buildings more beautiful, comfortable and with modern look.
Modern facilities such as ATM, cyber cafes, etc. to be provided at all major stations.
A pilot project for giving the publicity rights for an entire division to a single agency, through open tender.
Pilot project started to upgrade retiring rooms, waiting rooms, station buildings, lavatories, etc. under public-private partnership schemes at a few stations, to be expanded further.

Modern facilities in passenger trains

New technology LHB design passenger coaches to be used in Patna, Sealdah Rajdhanis also.
Four popular trains to be provided with world-class passenger amenities and interiors.
IRCTC to award license through open bidding to provide all on board services.
These services will also be made available on such mail and express trains without a pantry car.

Railway safety

Overaged tracks and bridges and track circuiting work on all stations on A, B and C routes to be completed by March 2007.
Balance works under SRSF to be completed by March, 2008.
Renewal of assets becoming due after 2001 being sanctioned on a concurrent basis and executed.
Number of consequential accidents comes down from 473 in 2001 to 234 in 2004-05.

Staff welfare

Increase in contribution to the Staff Benefit Fund for the next year – nearly nine-fold.
100 community halls to be constructed.
While away from Headquarter, food to be made available to running staff during duty hours at nominal rates.
Quality shoes, socks, gloves, uniforms, necessary implements to all gangmen/keymen.

Improvement in medical facilities

New super-specialty cardiology and nephrology hospital to be constructed at Patna.
Three new divisional hospitals at Agra, Raipur and Nanded.
ICF/Perambur – Phase I of new hospital building sanctioned.
Special Recruitment Drive & Extension of period of concession in maximum age limit
Over 6,000 SC/ST vacancies filled up during current year.
Special drive to fill up the backlog in the OBC vacancies next year.
Maximum age limit to SC/ST/Backward Class categories candidates extended by a year (from 3rd February 2006).

Concessions

50% concession in Second Class fares to farmers and milk producers for travel to institutes of national level in other parts of the country for the purpose of training/learning better agricultural practices and dairy farming  extended to Sleeper Class.
50% concession in Second Class & Sleeper Class fares to persons who have lost their limbs in accidents or due to any other causes, for travel to institutes of national level, for transplantation of artificial limbs along with one attendant.

Passenger services

The Thar Express between India and Pakistan inaugurated.
150 kmph speed trains started in Delhi - Agra Section. Will start on Delhi-Kanpur-Lucknow route too.
New trains, Extension of trains and increase in frequency
New Trains: 55 pairs
Extension of services: 37 pairs
Increase in frequency: 12 pairs
Re-routing of trains: 2 pairs
Construction of freight corridor
Dedicated Multimodal High Axle Load Freight Corridor with computerised control on Western and Eastern routes to be constructed at an estimated cost of Rs. 22,000 crores.

Worshops and production units

Production capacities to be increased at Rail Wheel Factory, Chhapra
Integral Coach Factory, Chennai
Samastipur Workshop
A DMU shed and a wagon overhauling workshop to be set up at Sonpur.
RCF Kapurthala being considered for declaration as a wholly owned PSU.
Investment strategy
Highest priority to route-wise throughput enhancement works on high-density network.
All pending throughput enhancement works to be completed in the next three years.
Annual Plan 2006-2007
The largest ever Plan Outlay of Rs. 23,475 cr, consisting of :
Rs. 7,511 cr of support from General Exchequer
Rs.10,794 crore through internally generated resources
Rs. 5,170 crore through extra budgetary resources (Rs. 4170 cr through market borrowing by IRFC, Rs. 500 cr to be raised by RVNL and balance Rs. 500 cr through Wagon Investment Scheme)
Total SRSF outlay Rs. 2240 cr, comprising of Rs. 1365 cr from General Exchequer and Rs. 875 cr from internal resources.
Outlay for road related safety works: Rs. 711 cr.
The thrust of the Annual Plan is on early completion of throughput enhancement works, safety, development and expansion of the network
The outlay on safety related planheads, is Rs.2,922 crore for Track Renewals, Rs.590 crore for Bridges and Rs.1,518 crore for Signalling & Telecommunications, Rs.436 cr for contstruction of ROBs/RUBs and Rs.275 cr for manning of unmanned level crossings.
National projects: need based funds to be released by MoF during course of the year. Amount sought: Rs. 2,092 cr.Projects
Targets for 2006-07 include over 550 kms of New Lines, over 1100 kms of Gauge Conversion and 435 kms of Doubling.
Surveys to be taken up: 23 New Line, 1 Gauge Conversion and 8 Doubling.

Budget Estimates 2006-07

Freight loading target at 726 million tonnes and freight output at 479 btkms
Revenues in freight, passenger, other coaching and sundry other earning segments to be Rs. 40,320 cr, Rs. 16,800 cr, Rs. 1400 cr and Rs. 1308 cr, respectively.
Gross Traffic Receipts (GTR) to be Rs. 59,978 cr
Ordinary Working Expenses to be Rs. 38,300 cr.
Appropriation to Pension Fund and DRF to be Rs. 7790 cr and Rs. 4307 cr respectively
Internal generation before dividend to be Rs. 14,293 cr
Operating ratio expected to be 84.3% in 2006-07
Proposals relating to Freight Rates and Passenger Fares

Freight services

No across the board increase in freight rates.
Rationalization of goods tariff to continue further.
Number of commodity Groups to be reduced from 80 to 28.
Highest class lowered to 220, freight rates of diesel and petrol less by 8%.
Over the next three years, the highest class to be lowered below 200 and rates for the highest classification to be made less than double that of the lowest classification (except rates of some light commodities).
Existing classes 90 W1, 90 W2 and 90 W3 for charging of lighter commodities to be replaced with new classes, namely, LR1, LR2, LR3, LR4 and LR5, equivalent to 90%, 80%, 70%, 60% and 50% of Class 100.

Schemes announced

Dynamic Pricing Policy for freight introduced during the current year to be also extended to passenger for peak and non-peak seasons, premium and non-premium services, and for busy and non-busy routes.
Non-peak season incremental freight discount scheme launched.
Discounts upto 30% during non peak season and 20% in the peak season with certain conditions on incremental freight in the empty flow direction.
Loyality Discount Scheme to encourage the transportation of cement and iron & steel by rail.
Long-term freight discount scheme to attract new customers and new freight traffic.
Mini Rake and 2-point rake scheme to be made available both in peak and non-peak season.
New Freight Forwarder Scheme for freight of over over 700 kms.

Passenger services

No increase in passenger fares.
Passenger tariff structure rationalized so that the fares of AC First and AC Second Class will be 11.5 times and 6.5 times the Second Class fare, respectively. Reduction in AC-I fare by 18% and AC-II fare by 10%.
Fully air-conditioned Garib Rath to be run on a pilot project basis initially with four pairs of services, fares about 25% lower than present AC-III tier fares.
Renewal period of Monthly Season Tickets increased from 3 days to 10 days and the super fast charges applicable on MSTs and QSTs reduced to one-fourth of the current levels.
Tariff fixation mechanism for military traffic to be rationalised and simplified.      
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