Railway Budget in India

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Railway Budget 2011 – 2012

The Union Railway Minister of India Mamta Banerjee presented the Railway Budget 2011 in Lok Sabha on 25th February, 2011. Keeping her word for “Common Man”, Mamta has delivered a budget with no fare hikes no freight rate increases and a sustainable train travel. The Bengal lady termed her vision for Indian Railways as a “path of modernization” as she expanded her Duronto concept with 9 new trains. The upcoming Infra bonds of railways worth ₹ 100 Billion are all set to carve a new path for corporate exposure of Indian railways, by which the funds accumulated can be used for further betterment

Railway Budget High Lights

New Policy Initiatives

Railways have developed several business – oriented policies for the first time.

They are :

  1. Railways Infrastructure for Industry Initiative ( R3i )
  2. Private Freight Terminal ( PFT )
  3. Special Freight Train Operators ( SFTO )
  4. Automobile Freight Train Operators ( AFTO )
  5. Automobile and Ancillary Hubs
  6. Kisan Vision ( Cold Chains )
  7. New Catering Policy
  8. Rail Connectivity to Coal and Iron Ore mines.

General Studies Question Bank CD
Rail Based Industries

  • Setting up of rail – based industries for meeting demand for rolling stock.
  • The works at New Jalpaiguri, Adra, Jellingham and Kulti taken up in collaboration with different PSUs.
  • First coach from Rae Bareli coach factory to be rolled out in next three months.
  • Wagon factory in Odisha to taken up, once land identified.
  • ICF Perambur’s second unit to come up.
  • Setting up of Palakkad coach factory.
  • Burn Standard Company Limited and Braithwaite Company Limited brought under Ministry of Railways.
  • Setting up of a Bridge Factory in J&K and an Institute for Tunnel & Bridge Engineering at Jammu.
  • Setting up of a Metro Coach Factory in Singur.
  • Diesel locomotive centre in Manipur to be setup.
  • Centre of Excellence in software at Darjeeling to be setup.
  • Setting up of two wagon factories under JV / PPP mode at Kolar & Alappuzha and one at Buniadpur.
  • Setting up of a factory for manufacturing on – track machines and a new track machine POH facility at Uluberia in west Bengal.
  • Setting up of Rail Industrial Parks at Jellingham and New Bongaigaon.
  • Setting up of 700 MW gas – based power plants at Thakurli in Maharashtra.

Expansion of Rail Infrastructure

700 km of new lines being completed in 2010 – 2011

  • 800 km gauge conversion, 700 km doubling and 1,000 km electrification targeted for completion in 2010 – 2011.
  • A new scheme ‘Pradhan Mantri Rail Vikas
  • All state capitals in the North East except Sikkim to be connected in next 7 years.

Dignity to the Poor

  • Provision of small shelter through Sukhi Griha Scheme to track side dwellers. 10,000 dwelling units to be provided in Mumbai, Sealdah, Siliguri, Tiruchirapalli etc on pilot basis.
  • Railways’ efforts to provide dignity to the poor through the Izzat scheme in 2009 – 1200 have benefited over four lakh disadvantaged citizens.

 Safety and Security

  • Anti Collision Device ( ACD ) sanctioned to cover 8 zonal railways.
  • All unmanned level crossings of TVU up to 3000 to be eliminated.
  • Deployment of GPS – based ‘Fog Safe’ device.
  • All India Security Help line on a single number set up.

Steps for improving the efficiency of the system

  • Based on the success of the pilot project of SIMRAN, jointly developed by IIT, Kanpur and RDSO, a Real Time Train Information System ( RTIS ) will provide reliable information on train running.
  • Collaboration with Bengal Engineering and Science University, Shibpur for using jute geo – textiles in embankment design.
  • A project with IIT, Chennai on prototype manufacture of ultrasonic systems.
  • Partnership with Jadavpur University for development of new designs for rail steel bridges.
  • A collaborative study with IIT, Mumbai on the problem of corrosion of rails.
  • The Centre for Railway Research ( CRR ), collaboration between IIT, Kharagpur and RDSO, has been sanctioned and is under implementation.
  • Centres of Excellence for development and prototyping various types of Mechatronics systems at RCF / Kapurthala and DMW / Patiala.
  • E – procurement and e – auction to ensure transparency and economy.
  • Development of a comprehensive web – based databank for land and asset management database for optimum utilization of our resources.
  • Issuing paperless railway receipts.
  • Extend web based system of allotment of iron ore rakes to coal traffic
  • Run double – stack container trains from Gujarat ports to the major ICD at Gurgaon.

Green Initiatives

  • 2011 – 2012 to be ‘Year of Green Energy’
  • Use of solar energy at LC gates and stations, windmill at ICF Chennai.
  • Use of bio – diesel, CNG and LNG in locos and workshops.
  • Free supply of 14 lakh CFLs to railway households.

Passenger / Rail Users Amenities

  • 442 more stations upgraded as Adarsh Stations.
  • 236 more stations included in the list of Adarsh Stations.
  • Introduction of pan – India multi – purpose ‘Go India’ smart card.
  • Internet access on Howrah – Rajdhani Express on pilot basis.
  • Extension of Train Management System to five stations.
  • Feasibility study with the help of Japan to raise speed of passenger trains to 160 – 200 kmph.
  • A new portal for e – ticketing by Centre for Railway Information Systems ( CRIS ) is ready and will be launched shortly.
  • Staff Welfare.
  • Increasing the scholarship for girl child of group – D employees to ₹ 1,200 pm.
  • Setting up of Railway Vidyalaya Prabandhan Board.
  • Provision of 20 Road Medical Vans.
  • 20 additional hostels for children of railway employees to be set up.

General Studies Question Bank CD

Training and Recruitment

Training Center to be set up at Kharagpur. Three multi – disciplinary training centres to be set up with an exclusive international centre at  Agra. New basic training centre at Kurseong. Five polytechnics to be set up.


Railway sportsperson won 25 medals in the Commonwealth Games 2010 and 7 out of 14 golds won by India in the Asian Games. A separate sports cadre to be created.

Cultural Activities

A special ‘Sanskriti Express’ exhibition train being run to commemorate the 150th Birth Anniversary of Rabindranath Tagore is being run which will also go to Bangladesh.

Financial Performance 2010 – 2011

  • Disruption of train movement resulted in loss of ₹ 1,500 crore and ₹ 2,000 crore due to ban on export of iron ore.
  • Loading target reduced by 20 MT to 924 MT.
  • Gross Traffic Receipts fixed at ₹ 94,840 crore, higher by ₹ 75 crore over Budget Estimates.
  • Ordinary Working Expenses fixed at ₹ 67,000 crore , an increase of ₹ 2,000 crore over Budget Estimate.
  • Operating Ratio of 92.1% as compared to 92.3% in Budget Estimates.
  • Revised Plan Outlay of ₹ 40,315 crore.

Budget Estimates 2011 – 2012

  • Freight loading of 993 MT and passenger growth of 6.4%.
  • Gross Traffic Receipts at ₹ 1, 06,239 crore to exceed one lakh crore mark for the first time.
  • Ordinary Working Expenses assessed at ₹ 73,650 cr. Appropriation to DRF at ₹ 7000 cr. Provision of ₹ 6,735 cr made for dividend payment. Excess at ₹ 5,258 cr and Operating Ratio of 91.1%.

General Studies Question Bank CD

Metropolitan Projects

  • Entire section from Mahanayak Uttam Kumar to Kavi Subhash commissioned in Kolkata.
  • 34 new services to be introduced in Kolkata Metro.
  • 20 – car MEMU trains introduced on Northern Railway.
  • Setting up of Kolkata Rail Vikas Corporation for upgrading entire suburban system of Kolkata.

Production Units : Capacity of DLW to be augmented to 300 locos.


  • Concession to physically handicapped persons to be extended on Rajdhani and Shatabdi trains.
  • Concession of 50% to press correspondents with family increased to twice a year.
  • Concession to Kirti and Shaurya Chakra awardees to be extended to Rajdhani and Shatabdi trains.
  • Senior citizen concession to be increased from 30% to 40% for men; women to get senior citizen concession from 58 years age.

Wagon Procurement

  • Record procurement of 16,500 wagons being done in 2010 – 2011.
  • Target for 2011 – 2012 kept at 18,000 wagons.

Dedicated Freight Corridors

  • Main loan agreement for Phase I of Western Corridor of DFC signed with JICA.
  • DFC project will be completed as scheduled.

New Lines / Gauge Conversion / Doubling

  • 27 sections of New Lines of about 700 km to be completed in 2010 – 2011.
  • 800 km target for gauge conversion to be met with work being completed on 15 sections.
  • 700 km target of doubling to be met with completion of 52 sections.
  • 40 sections of New Lines covering 1,075 km targeted to be completed in 2011 – 2012.
  • A target of 1,017 km under Gauge conversion covering 20 sections has been fixed for 2011 – 2012.
  • Doubling of 35 sections covering 867 km to be done in 2011 – 2012.
  • 190 surveys out of 251 surveys announced in 2009 – 2010 and 2010 – 2011 to be completed by March 2011.

Rail Tourism

In partnership with Ministry of Tourism, station improvement is planned on 50:50 cost sharing basis at 24 stations.

Suburban Services

  • 47 additional services to be started for Mumbai suburban.
  • 107 suburban services in Mumbai area to be augmented from 9 – car to 12 – car rakes.
  • 9 additional services to be run in Chennai area.
  • 50 new suburban services to be introduced in Kolkata area.
  • Introduction of peak – time local to BBD Bagh from

General Studies Question Bank CD
Bongaon / Krishnanagar :

  • Two non – stop trains between Bardhman & Howrah to be introduced.
  • 10 additional services to be run in Secunderabad area and 83 suburban services to be augmented from 6 car to 9 car services.
  • 2 additional services to be run on Delhi – Ghaziabad section.


  • 9 new Duronto trains to be introduced.
  • AC double decker services to be introduced on Jaipur – Delhi and Ahmedabad – Mumbai routes. 3 new Shatabdis to be introduced.
  • Frequency of 5 Durontos to be increased.
  • 4 Vivek Express trains to be introduced, to commemorate Swami Vivekananda.
  • 4 Kavi Guru Express trains to be introduced, on the occasion of 150th birth anniversary of Rabindra Nath Tagore.
  • 10 Rajya Rani Express trains connecting state capitals with important cities in respective states.
  • To promote tourism, special tourist trains called ‘Janam Bhoomi Gaurav’ to be introduced on four routes.
  • 56 new express trains to be introduced.
  • 13 new passenger services, 22 DEMU services and 8 MEMU services are to be introduced.

Projects in 2011 – 2012

  • 25 new line, 6 gauge conversion and 28 doubling projects are proposed to be taken up.
  • A Central Organization for Project Implementation ( COPI ) with offices at Delhi, Kolkata, Mumbai and Bangalore proposed to be setup.
  • 107 new line surveys, 4 gauge conversion surveys and 16 doubling surveys are proposed to be taken up in 2011 – 2012.
  • In 2011 – 2012, 1000 km route to be electrified.

Annual Plan 2011 – 2012

  • Highest ever plan outlay of ₹ 57,630 crores.
  • Gross Budgetary Support ₹ 20,000 crores.
  • Diesel Cess ₹ 1,041 crores.
  • Internal Resources ₹ 14,219 crores
  • Market Borrowing ₹ 20,594 crores; PPP / WIS ₹ 1,776 crores.
  • 1,300 km new lines, 867 km doubling, 1017 km gauge conversion targeted in 2011 – 2012.
  • ₹ 9,583 crores provided for new lines, ₹ 5,406 crores for doubling, ₹ 2,470 crores for gauge conversion and ₹ 13,820 crores for acquisition of rolling stock.
  • The prestigious Udhampur – Srinagar – Baramulla project is also progressing and work on India’s longest tunnel between Banihal and
    Qazigund would be completed this year.

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